The Story of Barter Town

Imagine a frontier town where the people of this modest community make their living by hunting, farming, raising livestock, chopping wood, and plain hard work.  When in need of help or some commodity, they shared what they have or trade with another person.  While the commodity was small, one-to-one barter was fairly simple, and there was the occasional bazaar where there was opportunity to conduct business more easily.

Old fashion bartering had its limitations.  One was the distance some might have to travel, second was finding what you want when you need it, and the third was unequal exchanges.  If you only had four chickens to trade but wanted a rifle, things got complicated.

Eventually cash money was distributed by states which weren't like gold or silver coins, but a more convient way to exchange goods.  The state money was not the value of the state but the confidence of the people to accept something that others will accept as a "Medium of Exchange" for goods and services.  

Imagine the first introduction of dollar bills to a town that never saw paper money before.  So, a fella from St. Louis comes to town where dollars are used, visits Bartertown and tries to buy a farmer's cow for $10.  He scratch's his head and asks, "What am I going to do with paper money?"  The buyer says, "Well, you find another person with something to sell, and you buy it with cash."

The farmer looks suspiciously at the man with a confused grin.  "You're not related to that snake oil sales that came by last month are you?"

The buyer replies, "No, dollar bills are a lot easier to carry around and let's me buy what I need on the spot.  You take can this cash money, and you buy what you need as well."

Still skeptical, the farmer asks, "Yeh, who is going to take them pieces of paper for anything?  I mean, I need a new axe, but Bob isn't going to give me an axe for some paper dollars."

"Maybe not.  But if Bob is smart, he can buy hay for his horses from his neighbor for dollars.  That neighbor can use the dollars to buy dresses for his daughter from that Sears catalogue; and you know what Sears takes for those dresses?"

"Dollars?" the farmer responds now starting to understand.  "So, you're saying I can buy anything with them dollars?" he asks.

The man pulls off his hat and leans on the fence.  "Let me be plain honest.  Anyone who doesn't accept dollars will be stuck in the past and still trying to sell a load of firewood to buy chickens from you.  What happens if you already have plenty of firewood?  You need an axe, not firewood.  So, your firewood friend needs to travel around to ten people to eventually trade his firewood for some chickens."

"If that fella had two dollars, he could buy some chickens from you because you know that Bob will sell you that axe for two dollars.  Then, Bob can buy a dress from Sears or even that mercantile store over in the next town.  Everyone can get what they want a lot easier if they use dollars.  How's that for a better way to get what you want?"

MORAL:  While there are people presently stuck in the fading glory of paper currency, cryptocurrency is the new "People's Currency" that is not controlled by banks, governments, super-wealthy, and Cryptocurrency, like Troptions, have real value based upon the constant flow of trades made each day.