In emerging world economy revolution is taking place.current currency system is losing its relevance. In old times barter prevailed to fulfill the daily needs of society of that time; people used to exchange things as required by them with the things as required by the other person; for example,if I require a cow for my use I would give say two or more goats to get one cow from the neighbor or say five or six hens for that. the system depended on system of requirement. Necessity or emergency depending at the time.
This system had many faults for example, the persons involved would not agree at the exchange rate one or the other was willing to give or he or she did not have the required quantity to give. one party may not have the item as required by the other
As man progressed and their numbers increased the requirements of the society increased many folds the barter system failed to deliver. As saying goes, necessity is the mother of invention it was imperative to have a new system to meet the requirements of the society. A great deal of thinking was involved to find a system that could meet the required needs.
Finally, it was thought to standardize the system. Instead of bartering some precious stones were set as a standard. All items were linked to it for exchange. For example, say ten goats or twenty hens five horses or ascertain amount of grain could be had by a person for one/or some laid amount of that stone.But this system could not last for long,because it too had many drawbacks. Because that type of stones might not be available at all the places.
Then came the precious metals such as silver or gold.A certain quantity of every item was linked to a laid down amount of gold. This came to be accepted world over.This system of linking economy to gold too had its limitations.it was difficult to transport.A great deal effort,transportation and security of gold during journey made it a very limited proposition.
Next stepin this journey was coin.it was an invention that revolution the system.Every nation linked its coinage system with a certain laid down of gold. World trade increased manifold due to this.it became much easier to trade between different countries. Every country keeps a fixed amount of gold to support its currency.This brought a certain level of stability in economic dealings all over the world.
This system too has its drawbacks.The countries having more resources,had upper hand,its currency has more value than those who have less resources. Such countries such as USA having more resources and more economic power exploit the world economy. Its currency dollar rules world over.US dollar has almost come to rule the world economy.
Some nations thought about curing this lacuny and their IT professionals programmed secret codes to develop a new currency which is secret and cannot be controlled by any country.Initially it came to be known as bitcoin, price of which was about one dollar has come trade up to about 19000 a bitcoin.Similarly such new currencies as IOTA,EOS,BCH(bitcoin cash),ETH(Etherine)and LTC(lit coin) have flooded the market. These new currencies are doing very big businessman are heralded as the future currency of the world even though most of the nations oppose.