From Gold to Bitcoin: The Evolution of Trust in Money

The journey of money is, at its core, a journey of trust. From the dawn of civilization, humans have placed their faith in something tangible. First, it was gold. Gold wasn’t just a shiny metal; it was sacred. We used it to honor the gods, to show reverence, and to signify value. Gold was the foundation on which we built our understanding of wealth. It wasn’t just about its scarcity; it was about the meaning we attached to it.

Then, our trust shifted. We stopped looking to the gods and started looking to emperors and kings. They took gold, stamped their faces on it, and created currency. Fiat money was born—a promise backed by power. It wasn’t about the metal anymore; it was about belief in a ruler. And when these rulers needed to expand their empires, to fund wars and build roads, they introduced bonds, instruments of trust backed by the future.

As time passed, humanity took another leap. The discovery of trade routes opened up vast opportunities and risks. To manage this new world of commerce, we created shares, and the limited liability company was born (Dutch East Indian Company). Now, anyone could take part in the growth, and entrepreneurs had a structure that protected them as they dared to dream bigger. This wasn’t just a financial tool; it was a way to align the ambitions of innovators, investors, and nations. It powered the Industrial Revolution and laid the foundation for modern capitalism.

But the world has changed again. We’re no longer a society that places its trust in gods or kings. We are a digital world, a global community that moves faster, thinks faster, and expects transparency. Today, it’s not about leaders; it’s about algorithms. It’s about creating systems that are bigger than any one person, institution, or nation. And this is where Bitcoin enters the story.

Bitcoin is still small—only $1.4 trillion in a world of $900 trillion in global assets. But just as stocks represented a new class of assets with immense potential during the Industrial Revolution, digital assets like Bitcoin mark the beginning of a new era. The potential growth of this asset class is profound, especially as we continue to build trust in a decentralized, digital economy.

Bitcoin and blockchain technology ask us a fundamental question: Can we create a system of value that isn’t tied to borders, politics, or even physical form? Can we build a foundation of trust that’s rooted in transparency, in code, and in a community of believers?

The story of money is a story of evolution. It reflects our shifting beliefs and values. As we look to the future, the question is no longer what we trust but how we choose to build trust itself. Bitcoin may be small now, but it represents the beginning of a new chapter—one where we trust not because of authority, but because of shared purpose.

Thanks for reading,

Guillermo Valencia A

Cofounder of Macrowise

Oct 29th, 2024