The History of money

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With all the talk about cryptocurrency lately, I thought this was an interesting look at the history of money.

When looking at Bitcoin here is an interesting fact not in the infographic.

2010: 1 bitcoin = 0.004 usd
2016: 1 usd = 0.001 bitcoin

Source:

About Raymond Hackney

Raymond is a writer, domain trader and consultant based in Pennsylvania. Raymond is the founder of 3Character.com and TLDInvestors.com.

Comments

      • jose says

        agree. a revolutionary technology in the making but nonetheless a big bubble in the short to medium term.

        seeing domainers switch to cryptos because they see only advantages is like when the cab driver talks to you about how easy is to make money in the stock market

        • Mike Carson says

          No, I think it is a bit different. When cab drivers start telling you to buy bitcoin and that it is the safest investment you can make, then you will know it is a bubble. None of my neighbors have any bitcoins or talk about bitcoins, and many don’t even know what they are. Once my neighbors tell me that “bitcoin will never go down”, I will think it is a bubble.

          Many people think it is a bubble because it has gone up so much, but that doesn’t make it a bubble. There can be real, valid reasons for something as revolutionary as bitcoin to go up as it has. But a real bubble is when it goes up many times above what it is worth simply because of hype. I don’t see this happening yet.

          But I wish you guys great success – I hope you have some bitcoins, and if you do, don’t sell too soon!

          Good luck – and keep in mind that most people will trade this wrong, because most people always do. Make sure you are not most people, when it comes to investing.

          “It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower” – William O’Neil

          • Mark Thorpe says

            Bitcoin is not a fad and it is here to stay and it will become another payment option for businesses, but the price is hyped and it’s technical price pattern shows a bubble in the making.
            Take some profits at this point and re-invest when it goes back down under $2k, which it probably will or buy Ethereum instead.

  3. Mike Lucas says

    I been in domaining for 10 years, most I ever made in 1 year was 40K in domains. I been in Bitcoin for 2 years, already made 4 Million. Have another, 3 Million I can cash out today, Liquid. Don’t need to sell anything, don’t need to renew anything, and don’t need to even convince anybody, it’s goes by itself. Maybe I was a shitty domainer, and maybe I was a lucky investor in Bitcoin.com, but right now I am retired, and never had to answer to a low ball domain offer again:-) And compared to others in Bitcoin the 4 Million I already made is nothing, some guys have made Billions in the last few years. No domainers have ever made Billions, none!!!

  4. Josh says

    A great explanation of the forming of USD is this video, boring in a way but very good. I liked it lol

  5. Mike Lucas says

    Hello Mike and Josh,

    2015 I bought most my BTC between 200-250. It hit 3,000 today. I still have a good amount, and sold quite bit between 2000-2500. My math is right, in fact I underestimated it.

  6. Mike Lucas says

    Mike,

    I have made 10x my money of what I sold, and more than that what I didn’t sell based on today’s value. So with that being said I put in way less than 1 million, less than mid 6 figures in fact.

  7. Logan says

    The U.S. did not completely abandon the gold standard in 1933. Instead, in 1933 FDR primarily nationalized all of the gold bullion held by normal, every day Americans and then devalued the U.S. Federal Reserve Notes in terms of gold from $20.67 per ounce to $35 per ounce (it now took more dollars to buy the same old ounce of gold, thus a devaluation of the currency’s purchasing power in gold terms). The U.S. truly abandoned the gold standard on August 15, 1971, the date of the “Nixon Shock” where President Nixon went on TV and told European governments and central banks to stick it — the U.S. was closing the gold window and they could no longer redeem all the dollars they had collected from selling stuff to Americans for the gold in Fort Knox and the Federal Reserve Bank of New York.

    From History.com:

    “On April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money. It required all persons to deliver all gold coin, gold bullion and gold certificates owned by them to the Federal Reserve by May 1 for the set price of $20.67 per ounce. By May 10, the government had taken in $300 million of gold coin and $470 million of gold certificates. Two months later, a joint resolution of Congress abrogated the gold clauses in many public and private obligations that required the debtor to repay the creditor in gold dollars of the same weight and fineness as those borrowed. In 1934, the government price of gold was increased to $35 per ounce, effectively increasing the gold on the Federal Reserve’s balance sheets by 69 percent. This increase in assets allowed the Federal Reserve to further inflate the money supply.

    The government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. In 1974, President Gerald Ford signed legislation that permitted Americans again to own gold bullion.”