🏛️ Before Cryptos: How Did Finance Work?
Finance not only existed before cryptocurrencies, but it has a millennia-old history that has evolved with every technological, political, and social change. Cryptos are just the latest iteration of a system that began thousands of years ago.
🔄 1. Barter and commodity economies (6000 B.C.)
• Direct exchange of goods: "I give you wheat for fish."
• Problem: difficult to establish equivalences → the need for a unit of value arises.
🐚 2. Primitive money: shells, Rai stones, salt
• Used as a medium of exchange in different cultures.
• Value based on scarcity and social acceptance.
🪙 3. Metal coins (7th century B.C.)
• Lydia (present-day Turkey): first coins of electrum (gold + silver).
• Advantages: durability, portability, state backing.
📜 4. Paper money and bank receipts (13th century A.D.)
• China: Yuan dynasty introduces banknotes.
• Europe: banks issue notes backed by precious metals.
🏦 5. Banks and credit (Middle Ages onward)
• Florence, Venice: the first modern banks emerge.
• Deposit, transfer, and loan systems are created.
📈 6. Financial markets (17th century)
• Amsterdam: first stock market.
• Companies sell shares, investors buy stakes.
🪙 7. Gold standard (1870–1930)
• Money had to be backed by gold reserves.
• Limited money supply → stability but little flexibility.
⚡ So what changed with cryptos?
Cryptocurrencies did not invent finance, but they did challenge its infrastructure:
• They eliminated intermediaries (banks, governments).
• They introduced digital scarcity (Bitcoin as digital gold).
• They opened debates about privacy, sovereignty, and algorithmic trust.
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