Debt: The First 5000 Years by David Graeber is a thought-provoking book that challenges conventional wisdom about the history of money and debt. Graeber delves into anthropological history to show that primitive communities operated on a system of sharing resources rather than bartering goods and services directly. Intra-communal affairs did not involve bartering; instead, credit overseen by the government played a key role in exchanges.
The use of commodity money only began in rare inter-communal interactions, with credit being the primary form of exchange in local regions. Ancient societies like Ancient Sumer formalized credit systems overseen by the government and temples, where debts were recorded and settled with consumable commodities. Coinage came later as large-scale civilizations collapsed and gave way to warring imperial states.
Throughout history, societies have oscillated between virtual credit money and coinage depending on the prevalence of large-scale war and conquest. People created their own credit networks, which were eventually mediated by the government, leading to the return of coinage during times of violent empires.
Graeber’s insights challenge the traditional narrative of the development of money and the role of the state in monetary systems. Bitcoin, as a stateless form of money, represents a historical shift, being the first truly stateless money to exist. This makes Bitcoin a significant accomplishment in the realm of monetary systems.
Regardless of one’s economic beliefs, Debt: The First 5000 Years provides a unique perspective on the history of money and debt that will stimulate thought, especially in the context of Bitcoin. It is a book worth reading to gain a deeper understanding of the evolution of monetary systems.
This article is a Take, expressing the author’s opinions and not necessarily reflecting those of BTC Inc or Bitcoin Magazine.