Introduction to Money: Trade by Barter

 INTRODUCTION TO MONEY: TRADE BY BARTER

This is the first of the six part video series on Introduction to Money.

On my last video, I talked about Bitcoin in 3 minutes or less...

There I talked about the solution Bitcoin came to tackle in this era of Information Technology.

I'll start by telling the story from the beginning.

During the era of wanderers and Nomadic Tribes. Our ancestors the Nomadic Tribes are the tribes that wander from place to place. As the tribes enlarge, some few challenges started coming up. Due to the different age groups, the aged, toddler, pregnant women... The Nomadic Tribes have restricted mobility. With the problem of mobility, they come up with the solution of settling down and forming a community. Even though it solves the issue of aged, toddler and pregnant women..., it came at a cost. The access to resources is quite limited. It resulted in the men going in search of resources that are not available in their community. In the process of doing that, they bump into other communities and if peradventure the resources are there, they cannot get it easily. To avoid conflict, they came up with the unique solution of "Trade by Barter".

Merits

·         It allows the communities to avoid fighting over resources.

·         It helps the community to meet their immediate needs.

Demerits

Due to the growing size of the communities, trade by barter started having some issues.

·         The issue of "double coincidence of want".

·         Promises become too difficult to track.

In my next video, I'll be talking about the successive civilizations and the unique way they address the issues of exchange and market and the type of money they use. See you on the next video.

Ayobami #silveretblack