History of money from barter to Blockchains….

Nice pictorial write-up from Mohit Mamoria on history of money. One can argue about the specifics (like in some countries it was not the temples but Goldsmiths which issued paper money and so on) but broadly the story fits in well. The pictures with it make it even better read.

In the end he says, value of money is derived from its scarcity:

Cryptocurrencies are decentralized, but that doesn’t mean everyone will have equal portions of it. It is one of the misconceptions I keep hearing.

“Because cryptocurrencies are totally decentralized, will everyone have equal portions of it?”

“No.”

If a currency will thrive in the long-term, it has to be backed by a scarce resource. Scarcity has the property that it is not evenly distributed. If it was, it wouldn’t be scarce in the first place.

Thus, money, by design, is such that there have to be rich and poor in society for it to have any value. There must be people who have a surplus of it, while the rest desires to have a surplus of it.

With cryptocurrencies, power and authority might change hands, but this will not change how society functions as a whole. The earlier you become part of the cryptocurrencies, the more you’ll have.

Kings will fall.
Kings will rise.
But the money,
Money survives.

Hmm..

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