Cryptocurrency — A barter Way?

written by APCOLLP
3 · 17 · 21

Each one of us is defined by our very own story. What makes us the person we are today, is the cumulative result of what lessons we have learned in the past. Similar to a human context, the evolution of Cryptocurrency also has a story to tell.

So, here I am trying my best, to decode it for you.

The story dates back to the beginning of human civilization, it’s the time when we used the barter system as a means of exchange. It was also the time when debits and Credits were kept in our heads as a mental ledger.

If trade were to happen between different states, there has to be an exchange of some scalable commodity. To cater to this demand commodity Monies came into existence.

There were many commodities but to qualify as commodity money there were 5 characteristics. It should be scarce, recognizable, divisible, fungible, and portable.

The 5 characteristics, for a commodity to be used as an exchange, in older times is very much relevant today to the cryptocurrency also. These characteristics are as follows:

1. Scarcity, all the cryptocurrencies are limited to a certain amount. For example Only a countable amount of 21 million Bitcoins exist today.

2. Recognizable, you cannot feel or touch a digital currency but you can keep it safe in your hard drive.

3. Divisible, trading of any cryptocurrency might or might not take place in its absolute numeric value. For example, you can buy a .05 amount of Ether.

4. Fungible. Although there is no intrinsic value associated with the digital currency it can be pegged to any fiat currency. For example, you can sell all your dogecoin in exchange for a dollar

5. Portable, what better than digital portable money.

History might not repeat itself, but it sure rhymes in a much more loud way.

APCOLLP

Related Posts

FRAGMENTED OWNERSHIP OF ART -NFT

FRAGMENTED OWNERSHIP OF ART -NFT

NFT or non-fungible tokens are the latest fad that shook the internet after Beeple’s digital art creation was sold for $69 million. Wondering what’s that? Well, read till the end to figure it out. What is NFT? Fungibility is defined as the ability of an item to be...

Budget Highlights 2021

Budget Highlights 2021

Key direct tax related amendments announced in Budget 2021: Re-opening of assessment is proposed to be reduced to 3 years from 6 years. Only where evidence of concealment of Income of INR 50 lakhs or more – re-opening can be made up to 10 years and only with approval...

Comments

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *