Debt: The First 5000 Years by David Graeber is a book that examines the history of money and debt from an anthropological perspective, challenging conventional wisdom about their origins. Graeber argues that primitive societies did not rely on bartering for goods and services, but instead shared resources within their communities. Money only began to be used in rare inter-communal interactions, with credit overseen by the government being the primary means of exchange within local regions.
Debt came before coinage and was maintained at scale by the state. Commodity money only came later as large-scale trust-based civilizations collapsed. Human societies have oscillated between virtual credit money and coinage, depending on whether the era was characterized by war and conquest. The state played a direct role in the formation of monetary systems and markets, contradicting the traditional narrative that barter led to the development of money.
Graeber’s argument challenges conventional beliefs about the origins of money and the role of the state in shaping monetary systems. He provides historical and anthropological evidence to support his claims, highlighting the importance of credit and debt in early societies. This perspective sheds light on the significance of Bitcoin as the first stateless money to ever exist, marking a significant historical shift in the concept of currency.
Regardless of your economic beliefs, Debt: The First 5000 Years is a thought-provoking read that will leave you with much to consider in the context of Bitcoin. Graeber’s case is based on solid evidence, making a compelling argument for the role of the state in the development of monetary systems. Whether you agree with his conclusions or not, the book offers a unique perspective on the history of money and debt that is worth exploring.
