Bitboy will take you through a brief evolution of currencies- Copied from Huobi Blog

in huobiblog •  6 years ago 

In the past, people used commodities such as shells and jewellery as currency. Due to their rarity, they were used as a store of value.

We then moved on to using banknotes. Banknotes are cheap to produce, yet can be traded for high valued goods. This is because they are backed by the government. With the rise of the internet, we went from banknotes to money of account. In our bank account, figures are added or subtracted when we receive salary or make purchases. Only banks have the right to alter our bank accounts.

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During the 2008 global financial crisis, the Federal Reserve used its power to increase the supply and circulation of money.

Satoshi Nakamoto found this unreliable and worked on the creation of a new payment system where everyone has bookkeeping rights, controlled currency supply and a completely fair and transparent ledger system.

That is the driving force behind the birth of Bitcoin.

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