Money evolution

Former PwC Crypto leader and partner and adjunct professor at the university of Hong Kong, Henri Arslanian is the co-founder and managing partner of the crypto hedge fund Nine Blocks Capital Management. In partnership with CoinShares, he explains how money has evolved over the years.

Money has always been defined by three characteristics: a store of value, a medium of exchange, and a unit of account. Throughout history, the form money has taken has evolved—from cattle and salt to cowrie shells, animal skins, and commodity-backed currencies such as gold. Even the U.S. dollar was tied to gold until 1971, when it became fiat money backed solely by trust in the government. Civilizations have often shifted between commodity-backed and fiat systems, particularly during times of monetary instability.

In this new segment, Henri Arslanian provides a brief but rich history of how money has transformed. A historic context that sets the stage for understanding why Bitcoin is more than a technological curiosity but a natural evolution in how societies define and exchange value.

Key takeaways

• Money has always evolved to suit societal and technological needs, from commodity-backed money (gold, salt, cattle) to fiat currencies backed by government trust.

• The transition from gold-backed dollars to fiat (notably post-1971 under Nixon) set the stage for alternatives like Bitcoin to emerge in response to monetary mismanagement and currency debasement.

• Bitcoin is sometimes viewed as “digital gold”, with a fixed supply and strong alignment to monetary discipline ideals.

• In a Web3 world, where value and information move globally and instantly, digital-native assets like Bitcoin fit the infrastructure needs of new financial ecosystems.