Barter system refers to exchange of goods for goods, which can only work when there is a double coincidence of wants between buyers and sellers. This leads to trading costs and makes exchange through barter difficult and complicated. The major limitations of barter exchange include lack of double coincidence of wants, difficulty in storing value, and indivisibility of goods.
# Double coincidence of wants
Barter system involves various difficulties and inconveniences such as the requirement of double coincidence of wants and absence of common measure of value. These difficulties create problems and waste time in striking a bargain. The concept of barter is to wipe-out the liquidity crisis by helping people trade, swap, and replace anything without any charges.