Emergence of alternative exchange systems
A while ago, I experienced a shortage of money despite trying to invest in a number of ideas I had at the time. Everyone I encountered shared similar experiences that even running businesses had not been spared. Suddenly, there were news that a certain community had derived a means of exchange that enabled their members to trade in subsistence goods and the relevant authorities swung in to curb their activities. Their business ecosystem may have been disrupted but the possibility of a solution had been highlighted.
Today, crypto currencies have emerged with overwhelming acceptance despite warning from governments on their illegitimacy. The main reason for this is because they solve the problem we just highlighted above. Scarcity of resources, money included, is solved by increasing supply or by finding alternatives that can serve the same purpose. The case with money arises from the fact that money ceased being a medium of exchange and became a commodity to be lent and kept out of use that creates a notion that its circulation exists as financial liability to financial institutions, not carefully considering whether these currencies match the supply of goods and services.
The overall objective would be to establish community exchange systems paying attention to economic activities of communities within the region for them to be fully effective. The approach affirms lack of government commitment to improve the economy, hence the need for citizens to derive their own money that empowers them to recharge their economy without having to be subjected to the banking tedious procedures. Transactions involving tangible assets and investments could require actual money, but alternative currencies through automation will guarantee basic needs to everyone hence solving the problem of ‘money-enslaved’ striking nations by far and wide.
To solve this problem, we need to first understand its genesis. The ever lingering problem that has lived with us all along is “Why is money never enough? “. This can best be understood by looking at the approach used during the formulation of economic policies. The first approach is to use classical economics where the government is a much smaller participant and the factors of production are in the hands of individuals. In other words the classical approach is how it is.
The second approach is the neo classical approach that disregards the factors of production and natural resources and this leads to market control using the large corporations and this is where the problem comes in. This is because these so -called free markets tend to be the main cause of money shortage for their own gain at the expense of the working individual. Their approach of how it should be versus how it is led to a scarcity of money which informed the need for an alternative.
To simplify this subject further we may as well invent a definition of money based on the problems we encounter on a daily basis and the solutions we seek to address them. The ordinary individual tries to attain one major objective on a daily basis and that is to make life easier and simple. They are also aware that they have what it takes to do it until they are confronted with the reality that it is either too difficult or impossible or both depending on whichever is applicable.
This is when money found its new meaning, a medium of exchange to pay for what people want. Hence it can also be what people want it to be as long as there is general consensus among traders that they will accept that something as payment for goods and services they sell.