Post the fall of the Western Roman Empire in the 7th century, frontier princes, armed with silver, shaped their destinies. The economy, tethered to silver mining, faltered when the mines were exhausted. Salvation came from Africa in the form of gold, adding a new dimension to currency.
Enter “black money,” a third tier, a blend of diluted silver alloy or copper, fueling daily commerce. Fascinatingly, these monetary tiers weren’t socio-economically bound. Black money was found in hoards, and ledgers recorded silver exchanges among the masses.
Contrast this with today, where money is tied to denominations issued by governing bodies. As commodity-backed money flourished, a commercial revolution ensued, with bankers and money changers at the helm. They profited from coin conversion, exchange rates, deposit and loan margins, and fractional-reserve banking - practices still in vogue.
The current crypto landscape mirrors the past - BTC is the new gold, ETH the silver, and the long tail of cryptocurrencies, the “black money.” This book unravels the enigma of money, whether backed by scarcity or state trust. It’s a social construct, its future shaped by its past.
The booked was written by Peter Spufford
