Time travel to modes of currency

 

Revolution of Payment System

Friends there are many things we want to get through in everyday life. No one in this fast-moving world is without any consequences. Every single is blessed with a problem that she/he can't avoid but these problems are quite solvable with one source. Can we guess....? what it could be....?. Simply, the first answer, which strikes us, is "Money". But money is not the only form of currency, which has nurtured people to set their goals. Humans are part of this give-and-take formula for thousands of years. 

To understand this methodology, we will start our journey by going back to the days when the form of acceptance was different from the current one. Years ago people were confused about how to value their products. So different modes of payment came into existence, such as animal, grain, metal, etc. So the change caused with time can be considered a 'Revolution to Payment System'. 

People started considering the exchanges for far land products and day by day it took an inclination of the existence of rare products in every market. But there was a problem with this method, as the payment was done using things, so this was unjustifiable and hard to transport the payments. Also, there was no central system to manage these payments. 

Alternatively, there was a new form of payment regularized, which was in favor of everyone. Valuable metals like gold, silver, and copper were made available as a form of it. It was the first time coins came into existence for usage. With this new era, people started trusting 'Gold' and it came on the floor quickly as it was easy to work with and pure gold weighed the same everywhere and at any time. Also, it was easy to make payments than the conventional methods of goods exchange. 

With time people started making the business too far land easily by utilizing new terms of payment methods, but there were certain uncertainties within these metal-based methods. Due to less accurate methods to measure the standard quality of metal based on its purity, many used to make fraud by adding impurities to gold. This caused people to bring down their trust in gold. 

Now it was time to make a change over these conventional decentralized methods and put forward a central system with a trusted group of people, who eventually work for making the system stable. Stability dignifies that a proper format for payment methods is continued on behalf of any individualities. So the burden of making the payment is converted to service. But as some quoted that every positive side comes with a free negative perception. Here trust in a single authority was a question for all. Is our money in a safe hand...?. For getting through this question of consequence, paper-based bonds and currencies were introduced to satisfy people, But this currency was way far different than the fiat currency. As it was controlled based on how much gold was preserved by the authority of a given region of control. 

But then in the 1970s due to the high rate of inflation, which caused central governments took over the power for controlling the current flow into their hands. By considering the paper money and gold apart from each other. This was done so that central authority can work with the economy without any limitation and can control inflation affecting the common people. This was positive but it was a pure centralized system that can be manipulated for sake of an individual's self-interest. 

Ultimately in 2008, a person came up with a decentralized virtual system that was much easy to use in comparison to fiat currency and was the fastest form of payment system in comparison to banking methodology. This we know as 'Bitcoin'. So Cryptocurrency was a change over from fiat currency as well as controlled by people, who hold it. To rest my case, these changes in the format of methods are in a cycle from thousands of years, and being a part of our life it is required to understand why this happened and the factor to it.  

At last, if there are any queries about this please contact me at mitgandhi2698@gmail.com.