I can get 25 cloth from punching sheep in a few minutes.
Cloth is a bad currency. You are paying people to punch sheep
As I've said before, the bartering system would work fine until people start owing people things, or when towns grow large. In the beginning, however, we can use bartering and measure things by necessity, i.e. one person runs low on food, so they get food from a farmer which requires something like smithing tools. A medium such as gold allows universal purchasing of things but further complicates it because the value of the medium would fluctuate
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