Learning the history of banking and its role in trade is the key to understanding the world-changing potential of Bitcoin.Photo by Darrell Chaddock on UnsplashThe story of modern banking starts here in Kaylan mosque, Uzbekistan. This was the gateway between the East and the west in the famous \u201csilk route.\u201dThe ancient silk road has two routes, the land route and the sea route.The land route passed through central Asia (China, Uzbekistan, Tajikistan & Kazakhstan).The sea-route passed through China, South East Asia, India, Arabia, and Europe.As silk passed through each of the towns\/ports, the value of silk increased, often dramatically, by the time silk reached the shores of Europe, the price would often be about 10 times the cost in China.The primary reason being trade piracy, pirates both on sea and land. Traders had to fight piracy constantly, and as a result, trading wares got very expensive.Hawala- Mother of modern BankingYou see, when traders sell their wares in distant lands and head back home with gold in their hands, pirates would attack them to steal their gold. Protecting your gold means you need armed guards all the time.An ingenious system called HAWALA was developed to overcome this \u201ctransporting gold\u201d problem.So you, a trader, just finished trade in Turkey and need to head back to Arabia. Instead of carrying the gold with you and braving pirates, you simply hand over the gold to a local hawala dealer. The hawala dealer gives you an asymmetrically torn piece of paper with a secret code on it.Once the hawala dealer receives your gold and gold from other traders, he will have a courier transport all the gold in high-security detail along with the other half of paper with secret codes to your destination in Arabia, etc.So once you reach your home town in Arabia (after\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Learning the history of banking and its role in trade is the key to understanding the world-changing potential of Bitcoin.Photo by Darrell Chaddock on UnsplashThe story [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts\/3413"}],"collection":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/comments?post=3413"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts\/3413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/media?parent=3413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/categories?post=3413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/tags?post=3413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}