From Gold to Cash, from Cash to Bitcoin: The Money Revolution Progresses

Over the years, technology has developed into an all-embracing fixed point in our lives and the characteristics of gene transfer have also changed radically.

Money has always enjoyed continuous development. Money” in the form of shells became bracelets, shiny coins became paper-based banknotes. Then came the credit cards – a piece of plastic that allows valuable and personal data to be collected with just one pull through the card reader.

Goods as cryptosoft

In the time when there were no cryptosoft scam yet, people exchanged simple items or different goods to get their desired good. Since it was often not possible to carry out a fair cryptosoft exchange, let’s say the exchange of a cow for a chicken, a possibility was looked for to divide the value of a barter object into many individual parts.

An example of money secured by the value of an object are the old Russian glass beads. The cobalt blue glass bead necklaces were used in the 17th century for trade between Russia and the locals in present-day Canada.

Smithsonian’s ‘Stories on Money’ exhibition. Source: TBN
The Handelsperlene, which originated in today’s Czech Republic, were later even used worldwide as barter goods. Of course, glass finds its value more in beauty than in a practicable exchange good, which breaks very quickly. However, it is a very nice example of the fact that everything that has a recognised value from the general public can be considered as money in addition to the legal means of payment.

Money covered by crypto trader

So how could a person get a fair price for a scam, or let’s say a more valuable jewel? While some goods could be dismantled into smaller individual parts, other goods unfortunately did not have this practical crypto trader property. Also, the constant transport of heavy gold was anything but efficient. It was simply too difficult to handle global economic trade solely through trade goods or commodities.

Money representing the value of a good, on the other hand, was a much more practical instrument for this purpose. It only took its time for this revolution to be recognized around the world.

A 1934 US Gold Certificate. Source: Collectors Weekly
Thus, money covered by goods in the form of notes or coins became known worldwide.

In this way an easily divisible instrument could be used which still has the value of a commodity. Often the gold was also used for it.

Gold was for a long time a stable and above all divisible form of money. In some countries, gold was also used for cultural purposes, which further increased its global value. The scarcity of gold was the reason why gold was used as money.

The US dollar was known to be covered by gold, the so-called gold standard. At that time in the 20th century, the USA had the world’s largest stock of the precious metal. But things changed and in 1971 the USA made a decision that drastically changed the concept of money.

Money Covered by the Government
Germany was the first country to abandon the gold standard. At that time it was a wise economic decision.

When the USA also decided to take this step in 1971, it also served to protect itself. The USA had accumulated too many dollar reserves and gold reserves continued to decline. So in order to avoid a depreciation of the dollar, the government decided to break the gold standard (also known as the Nixon Shock).

At the time, breaking away from the gold standard was a very risky business, but in retrospect it was imperative. The idea also arose that the fiat currency or government-based currency should be geared to the economy and not to the equivalent value of a commodity.