What is the essential feature of a barter system?

Barter was a primitive exchange system where goods were exchanged. This is the main feature of the Barter System.

Barter system:

• The barter system is a direct exchange of goods and services.
• It requires the double coincidence of wants.
• The barter system eliminates the use of money.
• It generally flourishes among uncivilized and backward communities.
• This system has been practiced for centuries and long before money was introduced.
• People started exchanging services and goods for other services and goods in return.
• Today, bartering has made a considerable comeback using more sophisticated techniques to aid in trading, for instance, the Internet.
• In ancient times, this involved system people in the same area; however, today bartering is global.
• The value of bartering items is negotiable with the other party.
• Bartering is usually conducted directly between two parties; however, it may be done multilaterally through a trade exchange.
• In times of monetary crisis, a barter system is often established as a means to maintain the trading of goods and services as well as to hold a country functioning.
• This may occur if physical money is not available or if a country sees hyperinflation or a deflationary spiral.

Hence, it is clear that the double coincidence of wants is the essential feature of a barter system.