June 15, 2021

Evolution of man and money

Evolution of man and money

Bitcoin and blockchain development began about 70,000 years ago when Homo sapiens surpassed their biological limits as a species. It is a story that is deeply rooted in the evolution of humanity.

More than 2 million people inhabit this planet.years. Homo sapiens appeared only 150,000 years ago. 70,000 years ago, something happened that activated our prefrontal cortex, accelerated the digestive system and stimulated other changes. While no one knows “how” it happened, it quickly put us at the top of the food chain.

And it was at this moment that the era of “history” began, which changed the future of the whole world. However, before we discuss what has changed, let's go over the details.

Dunbar's number

Robin Dunbar was a British anthropologist whostudied the average size of social groups and the brain function of humans and primates for many years throughout history. According to his findings, a person's cognitive processing system can withstand a maximum of 150 “friends” or stable social relationships.

These 150 people became known as the “Dunbar number”. This number is considered to be the evolutionary biological limit that we Homo sapiens live by to this day.

But…

The era of the dawn of history and began 70,000 years ago after humans learned to collaborate in groups exceeding this number.

How?

Communication changes everything. However, not all forms of communication.Animals, mammals, insects, etc., they all communicate in their own way, and as a result they unite into tribes, colonies, etc. In fact, most species are far more suited to organizing and building complex cooperative colonies than humans. However, communication in such groups takes place on a purely biological level.

Homo sapiens have evolved above all other species because we can somehow communicate at a higher quality level, beyond our biological limitations.

Difficult language

Language may have originated as a “cheap” mediumsocial grooming, allowing early humans to maintain social cohesion. Dunbar believed that without language, people would spend half of their time on social grooming, which would drastically reduce joint productivity. Language also helped communities stay cohesive while reducing the need for social and physical intimacy.

Complex language is a unique step in the evolution of our brain. He gave us time and space for the development of the second layer of the language:

Joint inventions

We are the only species that is able to communicate and share our attitude towards things that don't even exist.

Monkeys can lie. They can deceive their comrade by saying that an eagle is flying in the sky. When his fellow monkey rushes to run, the deceiver gets all the bananas for himself.

Monkeys can also warn each other aboutdanger. They can say to each other: “There is a lion walking by the river,” for example. However, only a person can say “the lion is the spiritual ancestor of my people”. Only homo sapiens - who don't know each other, have never met, and have no biological reason to trust each other - can strike up a conversation and build rapport just because they are both Chinese or Italians or other “fictitious” citizenships. Only Homo sapiens can use the same reason to build pyramids or to war with each other “in the name of our country”, as was the case during the First World War and the Second World War.

Joint inventions are languages ​​as such, and for many millennia there have been many of them:

Castes

Races

Kingdoms, Kings

Gods

Religions

Nations

Laws

Corporations

Money

All of these things are meant to make it easiercooperation, helping to shape exchange and build a more complex society. One of the earliest "joint inventions" was money. It exists to this day, because money is fundamentally necessary for the functioning of society.

Money and communication

Money at its most basic level is a formcommunication. Money is a "common fiction", it is an abstraction that, by our common agreement, is value. The forms of money have evolved over the years. From spices to shells, to coins, to gold, to paper, to plastic, and now to digital currencies. Money is the only form of communication that has stood the test of time and managed to overcome boundaries and barriers that other common fictions have failed to overcome.

Even religion cannot be compared to the power of money. Why?

Because at the very foundation of society and its ability to grow and function, there is one key element - value.

In addition, the ability to exchange values ​​-that's what makes society work. When we cooperate, we do “work” that has some “value” and in all our interactions we exchange these values.

It is also important to add that as the complexitysociety, the value will be further abstracted in order to reduce the possibility of disagreement in the exchange. This is why money is so important. Value is a subjective concept and can be expressed in many forms, but money is an objective tool that helps us enjoy value.

Money Attributes

Before we figure out what kind of money we need,let's look at the attributes of money. With each new type of money, we add new attributes to them. However, with each new type of money, we increase our dependence on trust. We live in the era of “fiat currency”, that is, a currency that relies on nothing more than “trust in the government” or “trust in the issuer”.

Therefore, we need a new form of money.We need a form of money and storage that is open and decentralized, censorship resistant, open to the public, accessible to all. We need a digital, divisible token with a fixed maximum amount. And it already exists - since 2009.

Growing up in a digital world

Each generation was convinced that it was "x" -real money. Gold and paper, backed by governments or central banks, have been the main actors for the past several centuries. When we started to switch to plastic, a lot of people made a fuss about it being "not real money." The same is happening with digital money today. However, people are adapting. Cryptocurrency is still perceived by some as a fun little internet trinket, but for the next generation, paper and plastic money seems to be relics of the past.

Digital currencies are the future, especially those that are decentralized, resistant to censorship, and cross-border.

Digital store of value

There is a lot of controversy surrounding the idea of ​​digitalcurrencies not supported by the government. Much of the controversy stems from their volatility. People think that “they will never become a currency” because they are unstable. And while this may be partly true, they are missing the most important thing: before anything can become a medium of exchange, it must become a store of value.

And becoming a store of value can take quite a long time, especially if it poses a threat to many stakeholders around the world.

Critics also argue that the cryptocurrency is "unsupported".

Well, the last (and only) form of moneywhich was real is gold. However, gold is also not supported by anything, except for the fact that it is real and tangible, which means it is safe and reliable. It is also fungible, stable and recognizable, so we decided that it has some value. By the way, gold also has a market capitalization of $ 7 trillion - and more importantly, it took it 5,000 years to reach that mark.

Networks

No one has ever predicted the growth of any network that has had a significant impact on society (this may be an exaggeration, but you get the idea). The most important rooted networks are:

Electricity

Telephone

the Internet

Social networks

Money and medium of exchange

Nobody knew about their appearance and could not predict their growth. I enjoy reading old quotes from critics about these networks:

The truth is, no online database can replace a newspaper, no CD can replace a competent teacher, no computer can change the way government works."Said American astronaut and author Clifford Stoll in 1995.

Internet growth will stall when signsMetcalfe's Laws will become apparent. Most people have nothing to say to each other. By the year 2005, it will become apparent that the internet has no economic impact.”. - wrote in 1998 by Paul Kragman, Nobel laureate in economics.

The same thing happens with bitcoin as it is in its development stage. I found this quote in Wired magazine:

Confused, Tired, Expired Back in 2012 - Bitcoin"

A look into the future. What will happen after the money?

At the moment, there are approximately 2000of digital currencies, in the long term, there will probably be 50 pieces - because the rest, except for those that are stupid fraudulent schemes or simply stupid, appeared ahead of time. They are simply not needed anytime soon, because the money / values ​​must first be sorted out.

After all this is done (for whatit will take many years) we will see how millions of applications begin to be developed that will function much better in a world working with much more modern, decentralized forms of exchange, governance, identity. It is worth noting, however, that many applications work better in a centralized format - not every application is suitable for blockchain technology, it can even harm many. However, fundamental elements of society such as exchange of values, governance, and identity will undergo major innovations. Our task is to build the first layer correctly. Everything else will come later.

Acceptance → Value → Stability

I believe that in order for this experiment to work, we need the following:

• Increase the adoption of cryptocurrencies.

• Increase the cost of the network

• We will see that the asset class begins to stabilize, and then it will have a chance to become a global, open, public, instant, decentralized form of exchange (ie money).

At the moment, we need to focus on the implementation of the first point. Points 2 and 3 will occur as a result of the widespread adoption of cryptocurrencies.

How do we do this? Simple (but not necessarily easy):

• Improvement of infrastructure.We just need to create better exchanges and more convenient ways for people to get into the sphere. There is no better way to learn more about cryptocurrency than to buy it.

• Improving infrastructure should includewallets, nodes, tools like Metamask, etc. When people are already using cryptocurrency, they are interested in more usability. Wallets, for example, have come a long way of development, however, it is far from over.

• Education.All nascent industries come complete with charlatans and scammers who want to make money fast. Nowadays, we often have to deal with all sorts of useless projects like Bitconnect, USI Tech, Mayweather, which promise a cryptocurrency that can solve the problem of world hunger and clean up your house, and perform a bunch of useless shitty functions. Many are wondering why this is legal at all ... In fact, many of them are not legal. Most of them are short term scams that will disappear in a few weeks or months. However, people themselves need to understand at least something about this area and try to engage in self-education and the education of others. To this day, I have not found one simple answer to the question “what is this bitcoin of yours anyway,” without hearing a dozen additional questions to my answer. However, we are getting close.

Final thoughts

I hope this long article (if youwere able to master it) will give the reader a good foundation for understanding why bitcoin exists, why it is so important, why it will not go anywhere, and why “history” began to move along a different trajectory.

And perhaps this understanding will help you understand why all the excitement is happening. Because, despite the ICO-bogus and moronic projects, now the world of cryptocurrency is changing the course of history.

According to the materials https://hackernoon.com