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With a bartering system, your items is only worth something if someone needs it. There is no universal currency, so trade can only happen between people with mutual needs.

Say you need a gallon of gasoline and your neighbor needs a pound of frozen vegetables. If they don't have the gas or you don't have the vegetables, then no one is getting their needs met.

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14y ago
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12y ago

difficulty of finding the exchange rate

double coincidence of wants was not always possible

storage of wealth

divisibility of goods

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