Okay, so when society was in its early stages there was no such thing as money we'll call this stage one the only way to buy something off someone was to go up to them and be like oh I really like your horse I'll trade you my cat for it, but the issue with a system like that is that even though you might be perfectly happy to give up your horse, you just might not want a cat. So that trade will never happen. Cryptocurrency Kia hi?
But that's where currency came in stage two, coins which because they were made of precious materials like gold and silver everyone just accepted that they were worth something. You've heard of the British pound right well the reason they're called pounds is because one pound literally just used to be one pound of silver and so, all of a sudden, in a trade it doesn't matter if you don't want my cat as long as I have coins we can still trade for your horse even if you have no use at all for the silver because it's a precious material you have that reassurance that you can take that coin give it to someone else and trade for something that you do want convenient right.
But then this evolved to stage three, as Banks became established and governments had control. We realized that as long as there was trust in the system, we could move away from needing to carry blocks of precious metal towards something even more convenient. Paper money it does the same thing, but now the money doesn't have value because it's made of pure silver, it just has value because the government says it has value like this 10 pound note here in the UK, the note itself is just made of, it's actually made of plastic they changed it recently because it's more durable but if you look closely you can see that all this actually is the Bank of England promising that they will pay the bearer of this note 10 pounds. This is just a receipt, a kind of proof that you own a certain amount of money.
But as technologies improved even further, we found even more convenient ways of storing and trading our stuff.
We're now in what I would call stage four where more people than ever are buying things online and using credit cards and really when you're at that stage we don't see our money any more it's not about coins or notes or cats it's just entries on a spreadsheet like when I buy a music album from Amazon all that's happening is that my bank adds an entry in my spreadsheet that says I now has ten dollars less and then Amazon's bank adds an entry that says they have ten dollars more. Cryptocurrency in India
So the reason I've given you this entire intro is to give you context on where cryptocurrency sits, it's seen by many people as the most convenient era of exchange ever.
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