Crypto in the Middle Ages
Agnel, Artiluc, Batzen, Ceiniog, Grivna, Tornesel or Yarmaq. Could these be new worthy additions in the pool of currently over 2300 (and counting) crypto currencies? No — these are the names of just a few of the many currencies (coins) that were used as medieval currencies.
During the medieval period of Europe, feudalism was the established political, judicial and economic system and offered significant powers in the hands of the (few) members of nobility. While these kings, barons, lords enjoyed many privileges, peasants or serfs lived their simple lives at the bottom of this societal hierarchy. In addition, religions were playing the important role of bringing social peace among the masses of Europe through a common sense of unity and belief systems. After the fall of the Western Roman Empire, a number of vast kingdoms started to develop in Europe.
Whether the kings really believed that God granted them and their families the right to rule over others or whether this was just a ruse to justify this position is hard to tell with absolute certainty. What is certain, is the role the clergy took in that scheme. With clerical help the upmost class easily controlled other lords who were forced to take oath of fealty and loyalty towards the king to maintain their economic positions. Kings offered land to barons who were known as manors or fiefs. The barons or lords of these manors enjoyed full privileges over these lands and they taxed peasants and serfs who were using these lands. They also took rents from serfs to allow them to live in their manors.
It almost sounds like Proof of Stake, granted by God.
The established system of taxes and rents was not necessarily paid in form of coins or other currency. Serfs or peasants could pay the taxes or rents either by Proof of Work in the manor for various chores and by managing the land or they could also pay the taxes and rents by joining the troops of barons (Proof of Life). In addition, serfs could also pay their taxes and rents by offering clothes, food and other necessities for the soldiers in the troops of baron.
While initially coins were not very important for the political exchanges in the middle ages, soon a need for people to earn money arised: There were local markets and these markets used to serve people weekly. People used to trade and barter various goods in these markets while some people also used money for buying the products of their need. Money was also used to take part in Church activities. With the increasing importance of Christianity as a mass religion, common men were effectively forced to join the church of their villages or towns. The clergy used to ask money from people and people had to pay money to get rid of their sins.
After this short intro, the reader may ask what this situation might have to do with today’s modern crypto. Certainly in modern crypto there are no feudal but rather democratic structures and principles and certainly no illusory goods are being sold for real, hard earned, money? Think again.
Before we elaborate further on that, let’s revisit the monetary system of the Middle Ages. Minting coins was a privilege of the upmost nobility class, so Kings and local Barons — then in the name of a city governed by them — each used a number of coins to handle requirements of modern payment beyond the more archaic barter system. Because coins came from many different authorities due to Feudalism, so there was no standard in shape, weight, size and value and exchanging coins was cumbersome. Sounds familiar?
How is today’s situation different? The coins are not physical in nature anymore (except someone explicitly makes them) and … that’s about it.
Minting crypto is again in the hand of a few privileged. Either the lower class of nobility, the one-eyed in the kingdom of the blind, capable of copying an existing crypto source, rebranding it and forming a more or less qualitative and quantitative group of users (a.k.a. “community”) around it.
Some one-eyed with sufficient criminal energy, such as the anonymous Boomcoin minters, deceive their group of users by pretending democratic principles, while going 99,49% full feudal. Some others, with a king or even god complex, such as his divine holiness king Zhao of Binance don’t even bother to provide such things as an open-source wallet for their “coin”. They merely sell letters of indulgence, pardon, “participation” in an enterprise of theirs. So in fact, this so-called Binancecoin is merely a token representing some part in the enterprise. A share or security asset. Don’t tell the SEC.
Why does all of it (still) work? There are two main factors. The whole crypto-economy is still in its infancy and both individuals, as well as governmental bodies have not yet developed a good common sense how to deal with it. Second reason is greed, which as we all know devours the brain.
The peasants and serfs of modern feudalism hope to get rich with this new magic internet money. A better life. Moving up the ladder. On the other hand, why not aspire for something more? Being filthy rich with a Lambo on the moon also sounds nice. After all, there are examples of people who got very rich with crypto currencies, so potentially everyone can?
The sad truth is, that almost no one can and will. There will be the less-than-1% and there will be the rest. What’s more important is the fact that most of the 2300, 3000, 5000 or wherever the total number of crypto currencies will max out will also not make it. Again, there will be the less-than-1% and there will be the rest. We are not even taking the position of some fallacious believers who think 99% of all Altcoins will die because “Bitcoin is the biggest and … yeah pretty much q.e.d.”.
The position we do take is that of a historian who knows about the evolution of money, who knows what happened to all these medieval currencies you can today see in the museum — or buy on eBay. Eventually individual currencies will have to step back as medium of exchange and make space for something bigger, something with global aspirations. Said global aspirations are not a sign of megalomania, they are a necessity in a time where the world has become a village.
It is our most sincere hope, that said “bigger coin with global aspirations” will not be forced on the peasants and serfs (and ultimately kings and barons too), but that it will come with a democratic proposition, a unifying and not conquering nature and as such finally — for the first time in 1000 years — free this planet of feudalism. For if you look close enough, you will realize that in monetary aspects, we still are in the Middle Ages.
Hope dies last.
