In the first chapters of every Economics 101 textbook there’s a misleading hypothetical about the origins of money. David Graeber, in his book Debt: The First 5,000 Years calls it “the founding myth of our system of economic relations.” This myth is so pervasive that even people who have never taken an Economics 101 class know, and believe in, this myth. We tend to assume that before money there was this awkward barter system where you had to keep all your chickens and yams with you when you went to market to buy a calf. If the person selling the calf didn’t want chicken or yams, no transaction would take place. Money seems to fill a very important need: it lets us compare and exchange a wide variety of goods by establishing a common metric of value. The problem with this construction—of simple barter being replaced with cash economies—is that it never happened. That’s what makes Bondsy, an app that let’s you effortlessly barter with a private set of friends, so interesting: It takes a modern myth and turns it into everyday reality. (more…)
The Pew Internet and American Life Project and researchers from Elon University asked over a thousand “experts” about the future of money. Specifically, they were interested in the potential replacement of cash and credit/debit cards with smart-device technologies.
The majority of respondents (65%) believe that smartphones will largely replace cash and credit/debit cards by the year 2020. Others, however, believe that our infrastructure is too closely tied with a cash/card based system to be fully replaced. Further, most experts note that not ALL consumers will make the switch, as some will resist over concerns about privacy and anonymity. Finally, many predict that adoption will differ across demographics (with younger consumers replacing cash/credit at a faster rate than older consumers). Read the full report here.
Indeed, it is not difficult to imagine a largely smart-device based currency system—as this is already prevalent in Japan and growing in the U.S.. The next step is to imagine the social implications of such a system. I believe that these implications will be twofold: First, we will become more efficient consumers. Second, identity and practices of consumption will be more explicitly and directly linked—solidifying the connection between self and stuff. (more…)