FROM BARTER TO BITCOIN – (PART I: the barter system)
Anthropologists suggest that the barter system originated in Mesopotamia as a result of the need to facilitate transactions. Centuries ago, when societies were coming together, division of labor led to an exchange of goods and services.
Maybe that was the case.
But, I believe that that’s just the “documented” barter. In my opinion, we see barter in action every single day… in nature. Animals and plants have adapted themselves to live symbiotically in nature. Each group has learned to benefit from another in some way, while still living in harmony. Maybe, something that we considered a human invention has always existed.
(source: smallscience.hbcse.tifr.res.in/crocodile-and-the-plover-bird/
This image might seem surreal to you – even photoshopped for that matter. It might be hard to believe, but this phenomenon actually occurs between the bird and crocodile. It is an example of mutualism (that contributes to the harmony in nature).The Plover bird picks out and eats the food stuck in the crocodile’s teeth. This way, the bird satisfies its diet and the crocodile’s teeth are kept clean, which benefits both organisms.
Let’s say you are starving. You go to McDonald’s to buy a burger. You had no idea which server would be there this time and what he would want. Say this particular day in exchange for the burger, you need to give away your PS5. The same PS5 that you just got last week and had waited 2 whole months for it. Will you be ready to give away your favorite video game? Or will you be okay to starve until you find something else? Is it worth giving away your PS5 just for a single burger? You made up your mind for it and were ready to give away your PS5.
But… the stupid McD person even needs your Xbox now.
This scenario shows how complex and endless our needs become, as societies continue to expand, which is why the barter system can’t continue in the current era.
This is not the only issue associated with barter. Let’s say you throw a party and need a good amount of burgers from the same McD guy. How will you be able to give him so many Xboxes? In another scenario you just wanted a fanta, which is of much lesser value than a burger; Would you be able to split your Xbox into a smaller piece for the drink?
The barter system did not succeed due to its problematic nature: the exchange of larger goods was difficult, there was no standard value, the subdivision of goods was impossible, information was not easily accessible.
As a result, we, being homo-sapiens (the supposedly ‘wise’ people), developed other ways of valuing goods. A ‘standardized’ currency for transactions was needed… so we created it. I will discuss this on my next blog, so stay tuned.
