There are a couple of theories as to why Satoshi chose the 21 million figure for the total supply of Bitcoin, but unless we hear it from Satoshi himself, we’ll never truly know. One theory is that at the time of Satoshi’s decision to use 21 million as the finite number of Bitcoin, the global M1 money supply stood at approximately $21 trillion. If someone can provide me with any more information on the tally stick system, I would be grateful. (For the time, I've put a citation tag next to the paragraph on tally sticks.) -- Ambrosiaster (talk) , 7 December (UTC)" Operation Realities of Tally Sticks as Money. The tally sticks were money. The article is not clear on this point. An ancient loan tracking device called a tally stick: the lender kept the larger portion, the stock, and became a stockholder in the bank that made the loan. Despite its superior utility for business, governments despised zero. In , Florence banned the Hindu-Arabic numeral system.
Tally stick bitcoinCarl Nixon The Tally Stick — The Brand Outlet
Where the tally sticks used then for exchange, or would they stay with the two parties that made the transaction until the debt was paid? Talley sticks were a forerunner for money. The article states that it was an alternative, which it wasn't. It was essentially a timesheet system for monitoring fair adherence to tasks It had nothing to do with money being in short supply It became illegal to trade in anything but state-branded coins during the medieval period.
For fear of losing ones hands, one followed I've posted this on the discussion page of King Henry I of England , but hope that I can find more information here. If someone can provide me with any more information on the tally stick system, I would be grateful.
For the time, I've put a citation tag next to the paragraph on tally sticks. Every money system is composed of an issuer in this case the crown and users the people. Because they could use that stick to pay their taxes Taxes create the demand for money. Vilhelmo talk , 24 December UTC. Notching and breaking sticks is analogous to one-way functions in cryptography. Messages have been encoded this way for centuries.
Now instead of using jagged sticks, they multiply large prime numbers because they are practically impossible to reverse without both variables, just like the tally sticks. Now even money can be created using electronic Virtual Tally Sticks. One of the most successful to do this to date is Bitcoin. I tweaked The Lebombo Bone is a baboon 's fibula with 29 distinct notches which may have kept track of the similar menstrual cycle and lunar cycle . The article explains the physical nature of various Tally Sticks but does not really explain how they were used and exchanged as currency after introduction by King Henry.
It would be good if someone could explain how it worked. The Tally stick is initially created after the exchange of goods or service. How does a tax receipt become currency? Can examples be given how exchange and redemption work.
From Wikipedia, the free encyclopedia. This article is of interest to multiple WikiProjects. History portal. Numismatics portal. Math Metro Books, , p. Namespaces Article Talk. He would then split the stick down the middle lengthwise and give one half to the citizen, the other half he would keep. This system worked so well that a demand for Tally Sticks grew and eventually became a form of money for exchange, actually a better way to think of Tally Sticks is Credit Cards.
There needs to be a second party involved to agree to take on the debt or loan. It became a system in which individuals would agree upon an amount and create records that multiple people had in order to keep track of, and have confirmation of, the ledger. This is essentially the Blockchain! How it worked is the stick was split in two, but one stick was longer than the other.
It was now on the Borrower to pay back the money owed to the… wait for it… Stockholder. Sound Familiar? The method worked, and quite well. It was virtually impossible to counterfeit. The grooves of the wood were so specific that it was easy to validate. It was also a Debt-Free system. This was not about creating more than what was available, this was about working only with what a country had in total and it would just shift around.
It was great, and it worked for centuries, until…. Royalty got greedy. Resentment towards the sticks began to grow and grow.
In the s the Bank of England was formed, and much like our Federal Reserve it was not a government backed bank. It was privatized. The government had to borrow money from the bank, so they created a lot of stock. They ordered all the sticks to be burned, and well, this happened:. It came to pass that they were burnt in a stove in the House of Lords.
Charles Dickens, as you can see, was definitely not a fan of them, but who would be? The people were hungry and dying, and they were in search of something different. Something that could bring any relief to them and change the economic system as they knew it. They felt the Tally Stick System was to blame and they were in search for a new monetary system. Again, sound familiar? This eventually lead to the system that is in place today around the world, fiat money. Ultimately the system was not perfect.
I would have found the fattest accountant possible to measure my stick. What was not flawed was the system of keeping track of the money. It was virtually counterfeit proof and it was not based on debt. What more could you ask for? Where it went wrong was the privatizing of the Bank of England. They eventually were willing to do anything to make more and more money, and that is exactly what happened. We currently live in a system where we are constantly required to pay more and more for services just to live.
So how do we make ends meet? So will Bitcoin free us from all this? We need a lot more to change, but if this can cause a domino effect, then I am more than willing to push this first piece forward.