Traditional currency systems are being assailed from several directions. Some propose digitizing national currencies as a means to decrease transaction costs, facilitate tracking, and discourage illicit uses of currency. Some suggest a single, global currency system is inevitable. Others propose creating non-government-backed forms of currency to eliminate the ability of government to control transactions, as well as to decrease transaction costs and enable anonymity.
What does the future hold for currency?
For more information on currencies and Bitcoin, see my previous blog, “Bitcoin: Wave of the Future or Flash in the Pan?”
Before there were currency systems, the barter system was used by people as a means of directly exchanging one good or service for another. However, the barter system had several fundamental disadvantages, such as