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The answer in such a state of affairs, nonetheless, is straightforward. You want a impartial and mutually trusted asset in between. Gold might serve this function, and has accomplished so traditionally, however it’s inconvenient and costly to ship gold round bodily. Oil may be used, however is just not divisible sufficient and is pricey to retailer and shield. Lastly, one might think about small impartial nations like Switzerland performing as intermediaries, however they’re prone to come beneath an excessive amount of strain from the bigger facilities of energy. Bitcoin, nonetheless, is in some ways designed for the job.
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