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