GREAT POST
This post is enlightenning and educating, giving knowledge to its readers. Talking about money we feel happy when we really have it. and of course will be sad when we get into debt, or its value is low. We will feel as if there is no point in holding money if it is low in value.
The money we now hold in either fiat or crypto forms is a metamorphose form of money from time to time.
As we know in the prehistoric life of man has begun to know barter, namely the exchange of goods with goods. This happens when humans are no longer nomadic and already know farming. Because the needs are increasing and can not be self-sufficient then the community trying to find people who have the goods as needed. If there is a matching agreement there will be a barter transaction.
on barter transaction there are weakness that is
- It is difficult to find people who are equally in need. for example i have rice and need salt then i have to exchange rice with salt. But on the other hand people who have salt do not need my rice but he needs meat. Then the transaction becomes more difficult.
- difficult to find valuable goods. Nlai salt and rice are of course different, so the cultivator aan feel harmed if exchanged with goods is not worth.
Due to this difficulty, the people are looking for goods that can be agreed as "money stuff" . For that, it is agreed that the goods used as money must have a high value, have magical value or are goods used in everyday life. goods that are made this money standard can be pearls and salt. In fact, in the historical record of salt in Rome became a medium of exchange and also used to pay wages. That's why until now wages are known as salary that comes from the word salarium, which means salt.
in the usage of this goods money there are also shortcomings such as storage difficulty, transporting up to the value can not be the same until the smallest fraction. eventually people use coins, both silver and gold. Gold and silver are metals whose value is relatively stable. In its development came the banknotes whose printing had to go through gold collateral. Paper money is known as fiduciary money, because people believe that printed paper has a value and can be used as a legitimate means of exchange.
The value of banknotes that rely heavily on the amount of money printed makes the occurrence of fluctuations. If the money in circulation is too much it will certainly lead to inflation. for that reason society starts to find a money system that is not related to the government of a country, not limited by time and region based blockchain and decentralized, that is crypto money and of course STEEM include in line of crypto as you described in your post. while we hope Steem get normal value again, let's make it come true.
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Thx for your long response. The main thing people have to understand is that it is a VERY different thing to be forced by law to use a certain "money" or to use something that emerged "naturally". Also it is important to understand the risks that come with money that has no intrinsic value. It is said by some, that cryptos do not have intrinsic value neither, which is imho not true. BTC has energy and system power "in it", Steem has content and a community "in it".
You are right. And we know that crypto will hold important role. However not every goverment has good policy to cryptocurrency. We can guess that they don't believe at all about crypto. Anf now the big chalange is how to force govermen so they will suport crypto development.