History Of Money Essay
Because people were using and holding the paper note rather than exchanging everything for the backed valuables, European banks started to issue more notes than could be all backed up at once, betting on the hypothesis that every individual holding their notes would not all come knocking on their door the next day asking for gold.
This became the first practice of the expansion of money supply in what we would consider modern money.
While the invention of coins solved many problems for money, there were still disadvantages.
For one, coins were molded from precious metals including gold.
Bitcoin’s value proposition is not digital currency — 90% of existing money only exists as digital currency; Bitcoin’s value proposition is its methodology in guaranteeing the trustworthiness of digital currency.
Supposedly, it began with hunting and gathering, which dominates over 90% of modern human history.
But the emergence of money wasn’t a concerted effort initiated through global agreement that stemmed from Mesopotamia.
Unlike shells and grains, citizens couldn’t just go out and find more gold and silver to melt and shape into coins with intricate stamps.
Grains, cloth, and other items were also used as money.
While they all sound different, each had three major features in common: While the first two features could easily be found in items like shells, grains, and cloth, the third was a little trickier.
Its development required no technological breakthroughs — it was purely mental revolution.
It involved the creation of a new inter-subjective reality that exists solely in people’s shared imagine.