Evolution of money:

Barter System ==> Metal Coins ==> Paper money ==> Digital Wallets ==> BitCoin

Barter System:-

It was in an early stage when ancient humans started figuring out to find comforts to make a living, there was no concept of money.

There was no medium to exchange value. So ancient humans figured out a way where in person A exchange the product X with a person B for product Y i.e. barter system.

If a farmer of that era grew Rice he can get other food products like 100kg of rice exchanged for 200 coconut. The problem is he cannot carry tonnes of rice he has grown to get other food products needed for his life.

This barter system had inherent issues. Farmer cannot carry tonnes of rice everywhere to get other grocery and food products needed for his life. Whatever the products that can be bartered should always be carried to the place where it gets exchanged. Most often many products couldn’t be procured through bartering.

Metal Coins:-

To overcome the issues existed with barter system, Central authority during those days, King/Kingdom of the day was given an idea and ordered to print a metal coins with a fixed amount of value for each coin and made a rule to use metal coins as the medium of exchange of value. When anyone wants to buy and sell products of value they would use coins. They can sell all their products at one place in exchange of metal coins and carry those coins to buy any other products they want.

Now in a changed scenario of newly invented money as metal coins, same farmer can sell Rice 100kg for $100 and carry that money in his pocket and buy 200 coconuts whenever, wherever he wanted. This made everyone's life lot easier.

Here too there are disadvantages, metal coins are still heavy to carry in long distance travel and also difficult to store in large amount, not a very convenient way.

Paper Money:-

Initially economies and societies, started transacting using metal coins. After the invention of paper, a certain genius came up with an idea to print the money on a durable paper which made transactions further easier. Over the time printing money on paper evolved to printing on a high quality paper which made sure not to print counterfeited fake notes.

Managing currency system in early stage of Computer,Internet era:-

In modern era, by then each nation has started printing money in their own currency for e.g. like Rupee in India, Pound in Britain, Dollar in USA. Economies and financial institutions were built around these currencies and it's applications.

Over decades most of the nation's citizens have an account in bank and their bank balances are reflected in paper passbook which reflected transaction details, balance, etc.

Central Governments along with it's central agencies like Federal Agency in USA, RBI in India took the responsibilities of managing the entire financial system of their respective countries.

With the evolution of computer, desktops, transactions at bank and maintenance banking operations were automated, bank accounts are managed by computerized operated account books. Transaction history, account balances are printed on physical paper just to assure customer of transparency.

What really has changed the game was network and Internet. Internet, networks allowed the banks to connect their individual servers where all their bank and their customer data were stored. This allowed 2 banks located in 2 corners of the globe to connect in turn allowed the money in one bank account in one bank transferred to another account in another bank within seconds.

Digital Wallet:-

During the course of time few third party platforms allowed and gave a feature to park individual's money in online account called "DIGITAL WALLET". This wallet may not be tied to any single bank account. This created ample opportunities, avenues to do online buying, selling and transact using these Digital Wallets and the era of Digital Money started.

But whatever the amounts in Digital wallets have been derived from the real time money which were printed and managed by government controlled central authorities.

Few of those prominent digital wallets are Paypal, PayTM.

Peter Theil and Elon Musk are few of the initial pioneers in achieving this digital wallet into main stream through their merged entity PayPal.

This became a digital money. By Now every bank and financial institutions have these services to facilitate the transactions of digital money.

Even after this evolution few things remained the same, who prints the money, who manages the money through the banks, it's the GOVERNMENT OF THE DAY.

Though it's trusted that governments, central authorities, kings who controlled, managed money system well. Quiet often the world has seen recession i.e. breakdown of economies due various reasons one of which would be because of improper, ineffective management of economy by means controlling currency. Few of the recessions that caused great agony to common citizen in america were 1929 Great depression, 2008 recession. Same the case with Japan’s 1990's recession.

In order to overcome such scenarios where in one central authority use the system for their benefit for e.g USA Federal agency has printed more than 40% of it's Dollar money in last 2 years. This has resulted in devaluation of Dollar. At present Dollar has been global reserve currency, whichever nation or individual have Dollar currency will be poorer by the day.

Dollar Hegemony:-

After World war - II, 44 nations led by United States came to an agreement called Brenton Woods agreement which resulted in world’s reliance on Gold and Dollar in framing the future currency system. Dollar has become the global reserve currency and most of the nations around the globe used Dollar for their international transactions. But in 1971 USA president Richard Nixon announced it’s decision to stopping Dollar pegging against Gold.

Essentially USA broke the Brenton Woods agreement allowing USA to have their Dollar printed without any regulations. US Dollar has become the crown king of world’s financial system and its ruling the world, other nations economies till today.

Implications of this Dollar hegemony are many more which you would learn upon detailed study are economic imbalances around the world, never ending wars in middle east countries, control of third world countries economies to name a few.

Probably to mitigate all these issues, demerits in current currency sysem, an anonymous person/group known as SATOSHI NAKAMOTA invented a medium for exchange of value called “BLOCKCHAIN” to transact the units of currency called "BITCOIN" which is purely computer algorithm based works on decentralization with transparency.

Evolution of money:

Barter System ==> Metal Coins ==> Paper money ==> Digital Wallets ==> BitCoin

Barter System:-

It was in an early stage when ancient humans started figuring out to find comforts to make a living, there was no concept of money.

There was no medium to exchange value. So ancient humans figured out a way where in person A exchange the product X with a person B for product Y i.e. barter system.

If a farmer of that era grew Rice he can get other food products like 100kg of rice exchanged for 200 coconut. The problem is he cannot carry tonnes of rice he has grown to get other food products needed for his life.

This barter system had inherent issues. Farmer cannot carry tonnes of rice everywhere to get other grocery and food products needed for his life. Whatever the products that can be bartered should always be carried to the place where it gets exchanged. Most often many products couldn’t be procured through bartering.

Metal Coins:-

To overcome the issues existed with barter system, Central authority during those days, King/Kingdom of the day was given an idea and ordered to print a metal coins with a fixed amount of value for each coin and made a rule to use metal coins as the medium of exchange of value. When anyone wants to buy and sell products of value they would use coins. They can sell all their products at one place in exchange of metal coins and carry those coins to buy any other products they want.

Now in a changed scenario of newly invented money as metal coins, same farmer can sell Rice 100kg for $100 and carry that money in his pocket and buy 200 coconuts whenever, wherever he wanted. This made everyone's life lot easier.

Here too there are disadvantages, metal coins are still heavy to carry in long distance travel and also difficult to store in large amount, not a very convenient way.

Paper Money:-

Initially economies and societies, started transacting using metal coins. After the invention of paper, a certain genius came up with an idea to print the money on a durable paper which made transactions further easier. Over the time printing money on paper evolved to printing on a high quality paper which made sure not to print counterfeited fake notes.

Managing currency system in early stage of Computer,Internet era:-

In modern era, by then each nation has started printing money in their own currency for e.g. like Rupee in India, Pound in Britain, Dollar in USA. Economies and financial institutions were built around these currencies and it's applications.

Over decades most of the nation's citizens have an account in bank and their bank balances are reflected in paper passbook which reflected transaction details, balance, etc.

Central Governments along with it's central agencies like Federal Agency in USA, RBI in India took the responsibilities of managing the entire financial system of their respective countries.

With the evolution of computer, desktops, transactions at bank and maintenance banking operations were automated, bank accounts are managed by computerized operated account books. Transaction history, account balances are printed on physical paper just to assure customer of transparency.

What really has changed the game was network and Internet. Internet, networks allowed the banks to connect their individual servers where all their bank and their customer data were stored. This allowed 2 banks located in 2 corners of the globe to connect in turn allowed the money in one bank account in one bank transferred to another account in another bank within seconds.

Digital Wallet:-

During the course of time few third party platforms allowed and gave a feature to park individual's money in online account called "DIGITAL WALLET". This wallet may not be tied to any single bank account. This created ample opportunities, avenues to do online buying, selling and transact using these Digital Wallets and the era of Digital Money started.

But whatever the amounts in Digital wallets have been derived from the real time money which were printed and managed by government controlled central authorities.

Few of those prominent digital wallets are Paypal, PayTM.

Peter Theil and Elon Musk are few of the initial pioneers in achieving this digital wallet into main stream through their merged entity PayPal.

This became a digital money. By Now every bank and financial institutions have these services to facilitate the transactions of digital money.

Even after this evolution few things remained the same, who prints the money, who manages the money through the banks, it's the GOVERNMENT OF THE DAY.

Though it's trusted that governments, central authorities, kings who controlled, managed money system well. Quiet often the world has seen recession i.e. breakdown of economies due various reasons one of which would be because of improper, ineffective management of economy by means controlling currency. Few of the recessions that caused great agony to common citizen in america were 1929 Great depression, 2008 recession. Same the case with Japan’s 1990's recession.

In order to overcome such scenarios where in one central authority use the system for their benefit for e.g USA Federal agency has printed more than 40% of it's Dollar money in last 2 years. This has resulted in devaluation of Dollar. At present Dollar has been global reserve currency, whichever nation or individual have Dollar currency will be poorer by the day.

Dollar Hegemony:-

After World war - II, 44 nations led by United States came to an agreement called Brenton Woods agreement which resulted in world’s reliance on Gold and Dollar in framing the future currency system. Dollar has become the global reserve currency and most of the nations around the globe used Dollar for their international transactions. But in 1971 USA president Richard Nixon announced it’s decision to stopping Dollar pegging against Gold.

Essentially USA broke the Brenton Woods agreement allowing USA to have their Dollar printed without any regulations. US Dollar has become the crown king of world’s financial system and its ruling the world, other nations economies till today.

Implications of this Dollar hegemony are many more which you would learn upon detailed study are economic imbalances around the world, never ending wars in middle east countries, control of third world countries economies to name a few.

Probably to mitigate all these issues, demerits in current currency sysem, an anonymous person/group known as SATOSHI NAKAMOTA invented a medium for exchange of value called “BLOCKCHAIN” to transact the units of currency called "BITCOIN" which is purely computer algorithm based works on decentralization with transparency.