NEW YORK, NY / ACCESSWIRE / January 16, 2019 / Welcome back to both our cryptocurrency and diamond enthusiasts and a warm welcome to our new readers. When we look at the world at large, we often fail to realize just how remarkable the systems of monetary exchange & trade we use today really is. From bank accounts to credit cards to even the often overlooked invention of paper money. We just don't typically consider it to be relatively spectacular as that's how we have always handled things as far as we can remember. Think about it: Could you imagine a world without banknotes and coins?
However, that wasn't always the case. Let's leap back in time and explore the surprisingly brief history of money together. We really believe it will help emphasize the importance of how cryptocurrency is changing the world in a revolutionary manner.
Back when trade was first being established, the concept of money took root. Be it through paper bills, coins, cowrie shells, and even enormous rounded boulders, money has always required two primary things to be considered, well, money. Those two things being scarcity and liquidity.
Liquidity is our foremost requirement when discussing money. It's the idea that you can spend that money and your medium of exchange for goods and services can be honored anywhere, and that you can divide it down as needed to make smaller purchases. Imagine sitting in a cafe and discussing with your neighbor that the little slip of paper in your hand is now worth the same as the computer he's reading this on or is worth the same as one hundred cups of coffee in the store you are sitting at. If you agree on the relative value of the money, then you have a uniformly liquid asset.
Scarcity is our second requirement, since what we are using as money shouldn't be easily replicable. If you can't create copies of it or just pick it up off the street anywhere you go, then you have scarcity. It should also have a material rarity to it and be durable enough to go through many transactions without falling apart to the point that its value cannot be determined. If you can easily counterfeit the currency, there's really nothing stopping someone from creating millions on their own to spend, leading to hyperinflation and drastically reducing the value of all 'money' in circulation.
Longtime readers of ours will know just how nasty that can get.
Culture eventually settled on a predominant currency with a few outliers. Most of the time, that currency was gold and silver. Great land and sea expeditions were sent forth to either bring back goods to sell for more gold, or to search for the beautiful metal itself. Giant trade fleets were formed and great wars were waged over the accumulation of gold & silver. Eventually, regular trade routes were formed. These gave us the ability to spread the dominance of these currencies through the world as trade with certain companies and fleets became popular. Spanish, English, and Portuguese colonies sprung up where people gathered for these fleet's main stops along their trade routes.
Now, that remained relatively unchanged for a long while until the Chinese exported the concept of paper money to the Western world. This brought forth easier transactions and ways to keep large amounts of money without having a huge bag of coins jingling from your belt.
Let's take another jump ahead of our mercantile friends and visit the modern era. Technological advancement has exploded, we now have the car, the phone, the microprocessor, and more importantly, we've been able to spend and transact with money like never before. With wire transfers, online banking, and debit cards now becoming commonplace, making transactions has become easier in the last 100 years than it has been in the last millennia. Even though the march of progress, cracks start to form and we start seeing the drawbacks of easy spending.
Wait, you just said that progress has made everything easier. What are the drawbacks?
Great question.
Back with our mercantile friends, they too had banks in the form of money lenders. However, theirs was a much simpler concept with an advance loan of coin in exchange for a specific amount of interest to be paid back. That was all they had to pay to access their money at any time. In fact, lenders notes of debt owed could be considered the ancestor of current paper money.
Now with electronic banking, in order to pad their bottom line, the banks have introduced ever more fees for customers with no sign of ceasing.
Want to open an account? There's a fee.
Want to maintain an account less than the bank prefers? Another fee.
Want to send your money to another account? Even more fees.
It's gotten to the point that there are even fees for incurring fees and banks have twisted the knife further by advertising how they have fewer fees than their competitors. It's a spiral leading to customers only losing money in the long run.
Even more bad news, very few currencies in this world today are backed by real-world assets that you can hold in your hand. The short history is as countries grew, the greater the need for gold and silver became in order to back their currencies. That is, until the invention of the Fiat System, which took away the physical commodity backing it and implemented a value based on the strength of the government who issues it. Basically, it's worth only the amount of trust people have in the currency, and the supply and demand for the currency based on that said trust. In short, the money in your pocket right now likely has no intrinsic value whatsoever. Without someone willing to sell goods and services for those bills, it's worthless.
This is why blockchain first came to be. The phrase ''be your own bank'' has become synonymous with cryptocurrencies and proven that we do not need banks and their high fees to use our money. Instead, we can take charge. Blockchain acts as a store of value, with many coins having a set limit. And once they're hit, there can never be new coins minted. Using your wallet, you create the equivalent of a bank account and now have the ability to sign and send transactions all over the globe for just a few cents, when the nearest wire transfer would cost nearly 500% more.
With D1 coin, not only do you escape the bank's extortions with fees, but you escape the notion that your money is just a piece of paper in your pocket. Every coin comes reinforced with the ability to trade in for real investment grade diamonds held in world-class vaults, ensuring the holder that they aren't holding just another piece of paper. They are holding a material value.
D1Coin holders are taking advantage not only of blockchain's ability to be spent anywhere in the world with no restrictions but also know that goods and services providers will see the coin's intrinsic value and be motivated to accept it based on the value of the diamonds backing it.
That's thinking with the Diamond Standard.
Thank you all for joining us today! The subject of world currency history really is an incredible one, and we encourage you to learn more about it if this article has piqued your interest. We barely were able to scratch the surface with our brief overview, so be prepared for an amazing adventure in your research. If you enjoyed the article, don't forget to leave a clap!
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About the D1 project:
D1 aims to be one of the top asset-backed crypto tokens accessible by everyone, backed by the valuable and rare investment-grade natural polished diamonds.
Investors from the ultra-rich to the retirement-minded can purchase and trade these coins with the peace of mind knowing that each holds the value of 1/1000th of a carat of hand selected quality polished diamonds.
Contact:
Email: [email protected]
Phone: +31208085635
SOURCE: D1 Mint Limited