From Salt to Bitcoin – Why do we need a new kind of money?

Have you ever wondered why we accept a piece of paper or a number on a screen in exchange for our hard work? It all comes down to one word: trust. Money is a social agreement, but to understand why Bitcoin was born, we must look at how that trust has been eroded.

1. The Journey of Money: From Physical to Invisible

In the past, money had to be something valuable and difficult to obtain:

• Barter and Salt: We started by trading goods. Salt was one of the first "currencies" because of its utility (that's where the word "salary" comes from).

• Gold: For centuries, it was king because it is scarce and durable. Until 1971, banknotes were "promises" that you could exchange for real gold at the bank.

• Fiat Money: Today, money has no physical backing. It is worth something only because the government says so and because we trust the system. But this allows new money to be created without limit.

2. The "Extra Zero" Trap and the Cantillon Effect

Imagine we all wake up tomorrow with an extra zero in our bank accounts. If you had $1,000, now you have $10,000. It sounds great at first, but if everyone has more money to buy the same things, prices will rise. This is inflation.

The problem is that this new money doesn't reach everyone at the same time. It's like pouring honey on a table:

• The Winners: The money hits the center first (banks and governments). They spend it while prices are still low.

• The Losers: By the time the "honey" reaches the edges (your pocket), the prices of houses, food, and gas have already gone up. Your savings have lost real value.

3. 2009: Bitcoin as a Technological Solution

In the midst of the financial crisis, Bitcoin was born. It's not just technology; it's the first money system that doesn't depend on humans, but on mathematics.

• It is limited: There will only ever be 21 million. No one can "print" more to benefit a few.

• It is distributed: It works as a network where all nodes are equal (similar to how BitTorrent worked for file sharing). There is no boss who can shut down the system or change the rules.

• You are in control: Unlike a traditional bank, where they custody your money, with Bitcoin, you are the true owner of your assets.