A Brief History of Cryptocurrency.

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I hope everyone is well. I am also very well by the grace of God. Today I am back with a new post. Hope everyone will benefit.

Collected from here

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I have already seen cryptocurrency gain a lot of popularity in the web 3.0 world. Such people who have not yet heard the name Bitcoin may be very rare. Bitcoin is legal in almost all countries of the world except a few countries. So we will know what money is from the primitive age till now.

Everyone believes that current money is a thing that has value. I think I took something from you. I gave you money for that thing and you accepted that money. Why did you believe that this money is worth it? You can use this money for any purpose.

At one time the price was fixed with gold and silver coins. Think you bought a goat. He gave gold or silver coins to the owner of the goat in exchange for the goat. The owner of the goat accepted it. Because the owner of the goat believes that the gold or silver coin has value. If he wants, he can buy rice, dal, vegetables with that gold or silver coin. The greengrocer used to take those gold or silver coins, because he knew that these gold or silver coins had value. This is how it used to be in ancient times.

But people faced a big problem. Think you bought 1 kg of rice, how much would it cost, let's say 2 or 3 gold coins. But if you are going to buy a big car. How many gold coins will you need? Maybe a few bags or sacks. It was very difficult to acquire so many gold coins and it was difficult to carry so much gold from one place to another.
Later people got wise. We will keep the gold coins in one place and from there I will take the paper. How many gold coins I have will be written on that paper. Later if I go to buy anything I will exchange this paper because paper gold coins were very difficult to transport and paper was very easy to transport. Now the seller can use this paper to spend something else or if he wants, he can withdraw the gold coins from where they are deposited.

This system was called the gold standard. Because I am exchanging gold with coins but using it with money. This gold standard system has been around for many years. The whole world accepted it.

Then the USA and the UK reversed the matter. In 1933 the USA removed the gold standard from their country and in 1931 the UK gold standard ceased to exist. Because they thought that if they want paper or money, we can print unlimited. But why we keep gold coins as reserve.

Go back a little. Earlier, if you wanted paper or money, you could not print unlimited. They could only print as many gold coins as they had.

Now after leaving the gold standard, many people could not trust paper money. Because anyone can print a lot of money. Then the government of that country said, "There is no reason to worry. I am the government and the bank of my country has taken this responsibility. If you want, you can also accept it." Then the Federal Reserve System was launched. Then everyone started believing in money.

But anyone can create their own currency if they want. But his currency has to convince everyone that it has value.

Collected from here

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In 2009, a person named Satoshi Nakamoto did not know anyone named a party. Its a white paper out of internet. They say we are bringing a digital currency market. It will be Desensitized. Which is completely Blockchain. The name of that currency is Bitcoin.

Now people of the world see that Bitcoin and gold coins have many similarities. Because gold coins were limited and Bitcoin was also limited. So gradually many people started believing in Bitcoin. Although it did not gain much popularity in the beginning, it has gained a lot of popularity all over the world. Hopefully Bitcoin will control the world's economic system in the future. Now there are more than twenty thousand currencies in the crypto currency marketplace with this Bitcoin.

There were many things to say. Maybe discuss a new post. Otherwise this post is going to grow a lot. So I finished here. Everyone will be good and keep in mind yourself. God Hafez.

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I am Md. Ebrahim Islam Nahid. Everyone calls me Nahid. I am Bangladeshi. I am an Electrical Engineer. I love reading books, writing and creating new things. I try to express myself and evaluate the opinions of others.