The answer in such a state of affairs, nonetheless, is easy. You want a impartial and mutually trusted asset in between. Gold might serve this function, and has performed so traditionally, however it’s inconvenient and costly to ship gold round bodily. Oil is also used, however is just not divisible sufficient and is pricey to retailer and shield. Lastly, one might think about small impartial nations like Switzerland performing as intermediaries, however they’re prone to come underneath an excessive amount of stress from the bigger facilities of energy. Bitcoin, nonetheless, is in some ways designed for the job.
