There was once a time when people very successfully used chickens, pigs, or a good pile of coal as currency as payment for clothes, new boots, or other essentials. Natural exchange ended when smart people invented currency - coins or bills that are either made of precious metals or symbolize some value and supposedly guarantee your right to it. Buckskin bills, gold louis, or today's dollars are actually not far from barter, and here's why.
Currency evolution
For hundreds of years, the currency has evolved technologically without changing the very essence of monetary relations. Medieval coins do not differ so much from the amount of rubles in your card account. The only difference here is that you don't need to carry a pouch around your belt. But, as history teaches us, the currency cannot avoid a leap into a new system, which can become very, very dramatic.
Before it was like this - the currency united one people, country or other community and interaction with other currencies took place through the exchange rate buffer. The current situation leads to the depreciation of the status of the national currency in its usual form.
Digital currency
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On two huge technological waves - the Internet and mobile technologies - digital banking systems allow for a completely new type of financial transactions. Never before has currency been able to do the things it is capable of now. The main risk for the economy here lies in the decentralization of cash flows, which can shake the economic giants of the most developed countries. Before it was like this - the currency united one people, country or other community and interaction with other currencies took place through the exchange rate buffer. The current situation leads to the depreciation of the status of the national currency in its usual form.
Digital currency acts as a catalyst for all types of businesses - big, small, legal and not so. It also creates a completely new wave of competition.
Bitcoin
On the territory of the Russian Federation, bitcoins are prohibited and the reasons for this prohibition are completely clear. The new currency poses a real threat to the national currency, since it reduces the concepts of the dollar, euro and ruble to absolute zero and the essence of money will be only in their numerical equivalent. This in itself is not revolutionary. Banking systems have been using these techniques for a long time.
The banking system without the participation of banks will become a real revolution. Bitcoin is the most dramatic example of emerging financial infrastructures outside the purview and control of central banks or other banks.
A painless transition
Digital currencies won't necessarily destroy the current system. Nowadays, a scheme for servicing the population using a smart currency is widely used, which is used for various types of payments. Conversion to digital currency under the control of existing banks can be painless if this transition does not get out of hand. This is the reason for the banning of bitcoins around the world. Nevertheless, it will be very, very difficult to stop the development of cyber currencies - there are too many people in the world who, although using anonymous currency, and too many people who are ready to produce software for using such currencies.