E

Barter Flopped

Barter trade did not meet certain qualifications. It flopped.

Barter trade failed to determine properly the value of the goods to be exchanged.  Somebody did not know how much vegetables was equivalent to one cow.  Even if they could determine how much,  what could somebody do with all those vegetables?

Barter trade also found it hard to act as a store of value.  If you stored your value in vegetables,  for example,  they could rot.  There were no freezers by then. 

The needs of the barter traders seldom matched.  A person with a cow could not get another trader who had what he needed and was ready to exchange them. 

Fiat Money Had Problems Too. 

Fiat money was controlled by countries and the Central Bank of those countries.  It was hard to use the same currency when you travel to another country. 

Fiat money,  money in coins and notes,  was bulky to carry too.  It also was prone to manipulations causing hyperinflation and other vices.  Hyperinflation is when a country puts more coins and notes in circulation. Corruption also affected fiat money. 

There is the problem of people of a certain country losing confidence in their fiat currency.  It will automatically lose value. 

So fiat currency can and is also known to have shortcomings.  What saves it is because it deals with country by country. 

Enter Cryptocurrency

All the problems seemed solved.  We had gone digital with digitalised currency. 

Things became fine.  Now we could enjoy.  No carrying of volumptous packages everywhere.  Wallets could do the trick. 

Yet with FTX becoming bankrupt.  Other exchanges are due to fall victims too.  People may begin losing confidence in cryptocurrency too.  It may become worrying but let's hope things turn to better.  We look forward to a future quite promising.

Read on