Debt: The First 5000 Years by David Graeber is a thought-provoking book that challenges the conventional wisdom surrounding the history of money and debt. Graeber’s anthropological perspective sheds light on how early societies functioned without the need for money as we know it today.
According to Graeber, primitive communities operated on a system of communal sharing, with bartering only occurring between separate communities. Money, in the form of commodity money, only began to be used in rare inter-community interactions across great distances. Within local regions, credit was the primary means of exchange, overseen by the government or ruling authority.
Debt, as a concept, predates coinage and was created and maintained on a large scale by the state. In ancient civilizations like Sumer, debts were recorded at temples and periodically settled with consumable commodities. As societies evolved and empires rose and fell, the use of credit and coinage fluctuated depending on the prevailing political and social climate.
Graeber’s analysis challenges the traditional narrative of money emerging as a solution to the inefficiencies of bartering. He argues that the state has always played a central role in the development of monetary systems and markets. This perspective may trigger some readers, but it is grounded in historical and anthropological evidence.
In light of Graeber’s insights, the emergence of Bitcoin as a stateless form of money takes on a new significance. While previous attempts at stateless money may have been short-lived, Bitcoin represents the first truly stateless form of money in history. This achievement is profound and marks a significant shift in the way we think about currency and exchange.
Whether you agree with Graeber’s conclusions or not, reading Debt: The First 5000 Years will undoubtedly give you a fresh perspective on the history of money and its implications for the future. It is a valuable read for anyone interested in the intersection of economics, politics, and society.
This article is a Take, and the opinions expressed are solely those of the author. They do not necessarily reflect the views of BTC Inc or Bitcoin Magazine.