The development of the traditional currency model as we know it today has evolved over centuries. The earliest forms of currency, such as barter systems, date back to ancient civilizations. The first metal coins were used in Lydia (present-day Turkey) around 600 BC.
Over time, various forms of currency and financial systems were developed, including the use of paper money and the development of centralized banking systems. The gold standard, where currencies were backed by a specific amount of gold, was widely adopted in the 19th century, and became the dominant form of currency exchange. Today, most countries no longer back their traditional currencies with gold reserves. The gold standard, where currencies were backed by a specific amount of gold, was widely adopted in the 19th century and was used as the dominant form of currency exchange until it was abandoned in the 1970s.
Since then, most countries have adopted fiat currencies, which are not backed by a specific commodity such as gold but are instead backed by the government issuing the currency. The value of a fiat currency is based on the trust and confidence that people have in the government and its ability to maintain the currency’s value.
Some countries still hold gold reserves as a form of investment or as a means of diversifying their foreign reserves, but these reserves are not directly tied to their currency and do not serve as a backing for their currency.
Since then, the traditional currency model has continued to evolve, with the widespread adoption of electronic forms of payment, such as credit cards and online banking, and the increasing globalization of the financial system.
So in summary, the development of the traditional currency model has taken many centuries and continues to evolve even today…so perhaps while many critics scoff at the possibility of crypto currency having a strong significance in today’s economy, it is possible that we just won’t be around to see it in it’s fully evolved form.
By:Stacey Soleil
Bold Beyond Hype Founder