Money: a human creation that changed the world and social ties. Know your hidden power.
Many classical thinkers (including Aristotle, John Locke, and Adam Smith) believed that money was a durable, portable, and fungible “thing” that arose after barter. that’s a myth. But it is a myth that, unfortunately, is still taught in universities. Evidence, however, has shown this idea to be largely false. In other words, these highly influential thinkers were wrong in the same way that Ptolemy was wrong about the universe.
Classical liberalism’s view of money has, over time, become a dogma. In fact, many economists and politicians still believe that money must be backed by something tangible or scarce. However, the reality is more complex and dynamic. Despite this, this legacy still lives on in many. And, in this world so divided and hostile, each group clings to its “truth” with fervor and fanaticism.
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Many people say on Twitter: “I know what real money is.” But what usually happens is that they have believed in an old dogma after watching a documentary full of prejudices on YouTube. That revelation, in most cases, is nothing more than self-confident ignorance.
Now, money is not a “thing”, but a way of carrying and settling social accounts. What matters is not the material or the form of money per se, but the value that we give to each other. Money is a social technology that depends on our trust and cooperation.
Coins and money, in other words, are useful tokens for recording the underlying system of credit accounts and for implementing the underlying clearing process. But the currency used is not itself “money”. Money is the system of credit accounts and its compensation that represents the currency. Money is not the thing. Money is the abstraction and the system built around that abstraction.
Many experts and philosophers consider money as a “thing” or a good that can be exchanged. This idea has marked economics and politics for centuries. But that conventional view of money no longer fits today’s world. Money is the social technology of transferable credit. The properties of the physical world are things like length, weight, heat, etc. The economic value is not one of them, but depends on the social relations between people.
Bartering was not the most common way to get goods and services before money existed. In fact, people would fight (with strangers) or give things away (with acquaintances). With the rise of cities, however, it was necessary to find new ways of exchanging without violence or familiarity.. It is no accident that writing, mathematics, and accounting arose at the same time and in the same place.
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At that time, barley, copper or silver were the ways of measuring what was bought and sold in Mesopotamia. These things became coins that were good for anything. The Mesopotamians also invented a system of banks with loans and deposits, and it spread throughout the ancient world. Money is not only used to pay or save. ANDMoney is a tool that helps order society and promote freedom.
Later, the Greeks arrived. Money was key to the development of the Greek civilization. Before his invention, societies were based on kinship or force to organize. Kinship limited the size and complexity of communities, while force required expensive bureaucratic and military systems. Money changed all that.
Money made it possible to create broader and more diverse social ties, regardless of distance or duration. It facilitated trade, distribution, and exchange of goods and services. Money (as we know it today) was born in Asia Minor, and spread throughout the Mediterranean world. Greece was one of the first civilizations to adopt it and take advantage of it to promote its culture, its politics and its science. Money was a revolution that transformed the history of humanity.
Money allowed us to measure and compare the value of all kinds of things. Money broke down the barriers that existed between the material and the abstract, the sacred and the profane, the personal and the impersonal. Money was born in Lydia, a region of Asia Minor, and spread throughout the Mediterranean. Greece was one of the first civilizations to use it and take advantage of it to create a rich and diverse culture. Money was a tool that helped us to express and satisfy our desires, but also to generate new conflicts and challenges.
Money is a human invention that changed the world. Nothing like it exists in nature or among animals. Money, like language, is a way of thinking and acting that distinguishes us as a species.. However, money also has great power over human affairs, and can affect or replace many of the traditional social ties based on family, tribe, community and nation.
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Today everything is politicized. And it all comes down to identity politics between warring groups. No wonder we also don’t agree on the true nature of money. The rights say one thing. The left says another. And of course, if my version doesn’t match yours, that makes us enemies. Today money is also part of the conspiracy. What is money? If for one group the money is A, then for the other group the money is B.
Many libertarians, conservatives, gold advocates, and Bitcoin supporters share classical liberalism’s ideas about money and economics. This presents me with a great challenge as a writer in a medium specialized in Bitcoin, blockchain and financial technology. I want to talk about money in an objective and impartial way, but I know that I can generate rejection or criticism. However, I do not want to repeat the same old biases and prejudices. Sometimes, you have to question the most widespread beliefs. The objective of this opinion article is not to convince or contradict the reader. The goal is to provoke reflection. Make people think. What is money?
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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