We use money every day, but hardly anyone asks what money actually is. Yet this very question is the key to understanding Bitcoin. The problem with barter Imagine you are a baker and need new shoes. But the shoemaker does not want bread, he wants fish. So you would first have to find someone who swaps fish for bread, and hope that the shoemaker is still there afterwards. Economists call this the double coincidence of wants. Money solves this problem: it is a good that everyone accepts because they know that others will accept it too. The three jobs of money - Medium of exchange: You can pay …
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