BitopiaLand on Nostr: This inability of #gold and #silver to cope with increased velocity lead to these ...

This inability of #gold and #silver to cope with increased velocity lead to these market-driven derivatives.

Which were eventually abused (of course!), leading to #fiat currencies.

#Bitcoin combines the best of both worlds.

quoting
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Commerce increased and the medieval seasonal fairs were replaced by permanent centers of exchange.

This required an increase in the velocity of money that #gold and #silver simply couldn't provide.

A problem solved by bills of exchange and notes of credit.