We’ve entered an exciting transformative period in which the role of money in our society is being reconsidered. Did you know for instance that all over the world alternative currencies are popping up? No? Well, buckle up then!
Money is essentially created to overcome the limitations of reciprocal trade by creating a quantitative ecosystem that makes exchange and value storage more flexible. But our current monetary system comes with some downfalls as well, which have become ever so apparent in our current time frame.
Some issues around money
Money promotes hoarding: For instance, €90 now is worth €100 in a years’ time at an interest rate of 11% (I know, I know, approximately . So it promotes today’s hoarding of money instead of investing it in sustainable productive resources. Demurrage, which is instigating a negative interest rate is an instrument to promote the latter.
Money doesn’t bare true value: the true value in a transaction between you and a baker is the bread that’s baked. We tend to ascribe value to money, where in fact it doesn’t have any unless it is backed by an asset or commodity (which in fact often isn’t the case).