Bartering to Blockchain — History Of Money
Mohit Mamoria
1K20

Ineresting article, but you are missing some essential points. Gold was introduced because people didn’t like a change of value of the money in between trades/ not because the seeds would devaluate or it was easier to carry. The seeds were never carried, but replaced by tokens of ownership anyway.

The problem of the scarcety of gold however was inverted to a growing economy. There was not enough gold. So therefore the ownership rights, which could be printed; especially after the printing press was invented; were multiplied accordingly and did not represent the amount of gold in the safe anymore. Therefore during economic crisis the bank collapses.

The scarcety means that it is covered by some form of ownership with value of its own, that banks use to pile up their loans. Which is clearly not debt. The debt exists on the other side, which means an obligation to repay. Which on its own does not represent the value of the money, because it is uncertain. You are mistaken that debt represents the scarcety of money. Then a whole lot of debt would make it invaluable, imagine that :-)

Even when money digitalized, banks still use the same system of underlying value. There is no difference. Therefore they don’t believe in crypto currencies. Nevertheless, as you said, as long as users believe in its value; which is not based on debt/ but trust and availabillity in the first place, then it functions.

Regarding trust, you are wrong to believe this depends on government. It depends on the economy of the country and its central bank.

The very weak spot of crypto currency is that its value is extremely unstable, like an unstable economy. Therefore it will never be generally accepted. Probably because of mining, which drives its inflation to increasingly higher levels.

Nevertheless blockchain and digital money could have practical usages. For instance by protecting your money against unwanted usage, by thieves or self appointed authority, which is a big problem in our current economy and perhaps sometimes political environment. So, in that respect it helps democracy. Also fi in its voting system. Which is a big potential for blockchain technology.

I would put my money on that, in developing software and forget amature crypto currencies.