Birth of Bitcoin – Latest in the Evolution of Currency
9000 BC: Barter Begins : Earliest recorded Barter trade was in Egypt in 9000 BC when farmers would go to market with their harvest and exchange it for animals like cattle and cows. But this was very cumbersome since valuation of any article could not be standardised.
1100 BC : Chinese had started using actual tools and weapons as a medium of exchange. Now they used miniature replicas of the same tools cast in bronze. However soon they realised that nobody wants to reach into their pocket and impale their hand on a sharp arrow so, over time, these tiny daggers, spades and hoes were abandoned for the less prickly shape of a circle, which became some of the first coins. Although China was the first country to use recognizable coins, the first minted coins were created not too far away in Lydia (now western Turkey).
600 BC World’s First Minted Coin : In 600 B.C., Lydia’s King Alyattes minted the first official currency. The coins were made from electrum, a mixture of silver and gold that occurs naturally, and stamped with pictures that acted as denominations.
1250 AD Introduction of Paper Money in China: Around this time Chinese had shifted from Coins to Paper Money. However In Europe coins were getting popular and stabilised. Florin was introduced in Florence. It was a gold coin and it kept a stable value for more than a century. It was accepted across Europe and it encourage international trade across the continent.
1290 AD Paper Money introduced in Europe : During 13th Century, travellers such as Marco Polo introduced concept of Paper Notes from China to Europe but it took another 300 years for Europe to adopt Paper Notes with Sweden in the lead.
1600 AD : Almost across the world Paper Money had been introduced resulting in increase of business and trade. All markets were flourishing and it became very easy to carry and access money.
1950 Plastic Money Revolution – The First Credit Card : The first ever credit card was created in 1950 by Frank McNamara when he found he didn’t had enough cash to pay for dinner. Diner’s Club Card was the world’s first credit card.
1990 Internet Banking : As internet became more and more popular, everyone tried to browse and explore its immense potential to increase business and enhance lifestyle. Bankers were no way behind in exploring this potential and soon came up with opportunities for their clients to access their bank accounts sitting in their offices and using internet. Soon payments were rolling out through Internet Banking.
1997 Contactless Fuel Payment : In 1997 Mobil Oil Corp introduced Speedpass, that let consumers pay for fuel at the pump. Speedpass was the first example of contactless payment, a concept which has now spread across the world.
2008 : Birth of Bitcoin – Digital Money :
In 2008 Satoshi Nakamoto realised that as we have travelled from Paper Notes to Plastic Money and Internet Banking options, whereas we feel now our money is safer and less prone to getting stolen, we are ignoring by all means, the exposure of our personal information that we are allowing to be stolen. Whether it is Internet Banking or Plastic Money such as credit card or debit card, we are sharing our personal information with a third party or agency like banks and financial institutions. This obviously invites some pilferage of personal information. Besides we are also paying hefty amounts as transaction fees to these third parties. He made use of softwares available from open source and introduced a digital currency – Bitcoin which will be digitally created and digitally stored. This was the birth of Bitcoin – the new digital currency. These Bitcoins can be transferred from one person to another without any involvement of a third party. The birth of bitcoin is the new revolution which is now attracting worldwide financial institutions and consumers, deemed to be the currency for the future.