Money and settlement alternatives. A world without money

The research work of the Money Research Institute is aimed at optimising, creating and disseminating computational network architectures of settlement mechanisms based on the immutable principles of equality of participants. Forecasting the development of money and financial institutions, developing a new type of currency, designing ideal money or its substitute in a free society.

Money and settlement alternatives

Money is not the only tool that can be used for settlement. There are alternatives that can be useful in different situations.

One such alternative is bartering. Bartering is the exchange of one commodity for another without the use of money. Bartering is beneficial if you have something that another person needs and vice versa. For example, you can exchange your vegetables for bread from your neighbour. Bartering can also help when money is not available or not accepted (for example, during crises or wars).

However, bartering also has its disadvantages. One is the difficulty in finding a suitable partner to barter with. You need him to have what you want and to want to acquire what you have. This is called the problem of double matching needs. In addition, bartering does not allow you to store value for the future: you cannot hoard goods that spoil quickly or lose their relevance.

Another alternative is to use commodity money. Commodity money is any commodity that has intrinsic value and can be used as a medium of exchange (gold, silver, salt, shells, etc.). Commodity money solves the problem of double matching needs, as it can be exchanged for any other good or service. Also commodity money can serve as a means of accumulating value.

However, commodity money has its disadvantages. One is the inconvenience of transport and storage. Commodity money can be heavy, bulky, and require special conditions to preserve its properties. For example, gold needs to be protected from theft, and salt needs to be protected from moisture.

In addition, commodity money can be subject to fluctuations in its value due to changes in market supply and demand (for example, if a new deposit of gold is found).

The modern alternative is the use of non-cash money. Cashless money is any record of debt or property rights that can be transferred to others without the use of cash (e.g. cheques, credit cards, electronic money, etc.). Cashless money has many advantages over commodity and cash money. They are convenient to use, safe, save time and resources, and allow settlements over long distances and in different currencies.

However, non-cash money has its disadvantages. One of them is the dependence on technology and infrastructure. Cashless money requires computers, internet, electricity and other means of communication, which can fail, be subject to hacker attacks. In addition, cashless money can be subject to inflation or deflation if it is not backed by real assets.

Thus, there is no perfect way to pay for goods and services. Each method has its advantages and disadvantages, and the choice depends on the specific situation and preferences.

Is a world without money possible?

This question sounds like utopia or fantasy, but it is becoming more and more relevant in modern society, where money plays a huge role in all spheres of life.

Money is not only a medium of exchange, but also a measure of value, status, power and influence. Money determines our needs, desires, opportunities and limitations. It is the source of many problems (inequality, corruption, exploitation, violence and war).

But can we imagine a world without money, where people live in harmony with nature and each other without pursuing material goals or competing for resources? Is it possible to imagine a world where everyone contributes to the common good and receives everything they need for a happy life? Is a world without poverty, hunger, unemployment and hopelessness possible?

Such a world seems impossible, but it is not an absolute fantasy. There have been examples in human history of societies that lived without money or with minimal use of it. For example, in the ancient civilisations of Mesopotamia, Egypt, India and China, money was not the primary means of exchange. These cultures were dominated by other forms of wealth distribution such as kinship, religion, tradition and reciprocity.

In Medieval Europe, money also did not play a major role in the daily life of the peasantry, which relied on subsistence farming and feudal relations. In the New Age, there were experiments in creating utopian communities that renounced money and strove for equality and solidarity (e.g. the New Harmony commune in the United States in the 19th century or the hippie movement in the 20th century).

However, all these examples had their shortcomings and limitations. It was impossible to get rid of money completely or to replace it with other forms of exchange.

The answer to the question about the possibility of a world without money cannot be unambiguous. On the one hand, we can dream of such a world and strive for it. On the other hand, we must recognise the reality and complexity of the existing world and look for ways to improve it. Maybe the solution lies not in rejecting money, but in changing its function and meaning.

Maybe we can create a fairer and more sustainable economic system that does not depend on money, but is based on other values and principles. Maybe we can develop more humane and democratic relations between people, which will not be determined by money, but will be based on mutual assistance and co-operation.

Maybe we can restore a harmony between man and nature that will not be disturbed by money, but will be sustained by respect and responsibility.

A world without money is not only a dream but a challenge. It is not only a goal, but a journey. It is not only a utopia, but a reality.

Designing an Ideal Money or its Substitute in a Free Society

How can we design an ideal money system or its substitute in a free society (a society in which there is no central authority regulating the economy and finances)?

Money is a universal equivalent that allows for the exchange of goods and services. Money fulfils three basic functions: a means of circulation, a means of accumulation, and a means of measuring value.

In order for money to perform these functions well, it must have certain properties:

– Divisibility. Money must be easily divisible into smaller units without loss of value.

– Homogeneity. Money should be equal in quality and quantity so that there are no problems in comparing and valuing it.

– Stability. Money must retain its purchasing power in time and space, that is, it must not be subject to inflation and deflation.

– Portability. Money should be easy to carry and store so as not to create unnecessary costs.

– Rarity. Money should be limited in quantity so that it does not lose its value.

– Acceptability. Money must be accepted as a means of payment for goods and services.

Existing monetary systems do not always fulfil these requirements. For example, traditional money (paper notes or coins) has problems with divisibility, stability, portability and rarity. Paper money is easy to counterfeit or damage, and it is prone to inflation due to unlimited issuance by central banks. Coins are heavy and inconvenient to transport and store, and they can be subject to corrosion and wear and tear.

In addition, traditional money depends on the credibility of the government and the bank that issues it.

On the other hand, digital money such as cryptocurrencies or electronic payment systems have advantages in terms of divisibility, homogeneity, portability and rarity. Cryptocurrencies are based on the blockchain, a distributed database that stores information about all transactions and cannot be tampered with or altered.

Electronic payment systems allow you to transfer money quickly and conveniently around the world using the internet. However, digital money also has its disadvantages:

– Instability. Digital money is subject to strong exchange rate fluctuations due to the speculative nature of its market, as well as the influence of various factors (technical failures, hacker attacks, regulatory restrictions, etc.).

– Non-acceptance. Digital money is not widespread and accepted as a means of payment, especially in developing countries or among low-income populations.

– Insecurity. Digital money requires special devices and programmes for storage and use, which can be lost, damaged, stolen or infected.

Designing an ideal money or its substitute in a free society is an interesting challenge that generates a lot of debate.

Such a system should be fair, efficient, and capable of providing a sustainable economic environment. It is important to note that this is only theoretical reasoning and the realisation of such a system may face many challenges and obstacles.

There are several aspects to consider when designing an ideal money or its substitute:

– Fairness and equity. The system should ensure equal opportunities and fair distribution of resources, including mechanisms that prevent inequality and discrimination.

– Sustainability and manageability. The system must be resilient and able to cope with economic fluctuations and crises. It is also important to have governance and regulatory mechanisms to prevent abuse and monopolies.

– Ease of use and accessibility. Ideal money or its substitute should be easy to use and accessible to all members of society.

– Environmental sustainability. The system should take into account environmental aspects and principles of sustainable development.

– Technological innovation. Given the rapid development of technology, ideal money or its substitute should be capable of adapting to new technological realities and the needs of society.

Designing such a system requires the participation of economists, philosophers, sociologists and other specialists.