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Lobnek Newsletter, August 2021

A Brief History Of Money

Lobnek Wealth Management,  August 2021

“Money is the most universal and most efficient system of mutual trust ever devised.”

Yuval Noah Harari (1976 – ), Israeli Historian

 

Ever since our forebearers came to the realization that we cannot all possibly be “experts” in everything, that being a “jack of all trades” also meant that you would be “master of none”, and that creating a platform in which trading one’s skills in producing a particular good or service in exchange for those of others made so much more economic sense than any other conceivable setup, our lives were to be transformed forever. All efforts from then on went into optimizing and refining the process of transacting, the special lubricant between the cogs that provided economies with the necessary means to develop to a scale that would otherwise have never been possible. The barter economies of centuries ago were certainly a better solution than the alternative of the time, which consisted in going to war and plundering, but bartering was also highly inefficient and cumbersome and no match to what would come after.

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