A brief history of money

Humans have been trading various forms of money for thousands of years. Many types of precious objects, acting as a Medium of Exchange, have been used. In the early ages, we traded grain, cattle, shells, and gems for other goods and services. This type of money, which we can touch and see, can be considered Physical Money.

As civilization progressed, so did our political systems. Eventually, sparse tribes and villages consolidated into kingdoms, states, and empires. Through the transformation, we saw our money shift into Political Money; money that's governed and issued by a central body such as the King, Emperor or, as in today's society, a Central Bank. State issued coins, bills, and notes, as well as taxation, regulation, and monetary policy—all emerged from this shift.

Today, Internet technology connects us directly to each other, opening a vast range of possibilities. By dissolving pre-existing physical and political boundaries, for the first time in history, the entire planet has access to the same information. This level of access is guaranteed by the Internet's decentralized design. Without a centralized hub, there is no single point of failure or control.

Satoshi Nakamoto, the creator of Bitcoin, leveraged this powerful network to implement a peer-to-peer (P2P) system for exchanging virtual cash. Built on a decentralized design and protected by powerful cryptography, this new type of money is no longer physical, yet resilient against corruption and manipulation.

No single group of individuals, including governments, banks, and corporations, control Bitcoin because all the peers are equal actors, participating through the same protocol. Its monetary policy is defined and self-regulated by its open network of computers. Thus, with Bitcoin we're seeing the emergence of a new phase of money. This P2P money is called cryptographic money or simply Crypto-Currency.

We're going to start exploring the world of Bitcoin by purchasing a small amount.