We need Smart Money

Money represents value in our society. We all use it to trade for the things we want and need. It is an IOU to the rest of humanity. But however it helps people to trade value it has some design flaws which causes all kinds of problems.

For many people money became a goal on itself. Money became a way to represent power. It became something to lust for. And having it also means being independent. If you have money you can decide what will happen.

Most organizations are run with the main goal to grow the pile of money for the share holders. The organizations focus on how to make things more efficient for the max amount of profit. But this can cause a lot of bad things for those values that are neglected. People are exploited in poorer countries. Environment is destroyed so people can profit now. Why is anything that is bad cheaper than the good alternative?

Money and its dynamics causes destruction as much as it creates.

A powerful way to think of money is that it is a way to vote for your values. Whatever gets money can grow. But at this moment most values are lost along the way and money ends up destructing those values.

These days the values for our society are defended by politics so we can be saved from the most endangering schemes. But politics itself is not immune to the bad influences of money.

What if we could evolve money? What if we could make it smarter? What if we could embed our values in the money so they are not lost along the way? So the money could not be spent on violence or on unsustainable land usage? So it has to be used on local initiatives or gives back to the people doing the actual work? Currently all our values are lost when we spent our money.

What if we became shareholders of the organizations on which we spent our money? And our money contains the votes on how the organization could evolve?

For example we could embed that our money spent for healthcare has to be used for salaries of the doctors and nurses but also for research to improve the quality or make drugs cheaper. We could embed what kind of max profit is taken by the people within the chain which the money passes through.

With our current dominant structure of money this embedding of values is not possible. You cannot control how it is spent later on in the chain. Our money is dumb. But with new cryptocurrencies and decentralized blockchains it is possible to encode its usage within the money. The usage is then validated by the decentralized system.

The exact details of how this could work needs more thought and experimentation. We are only starting to see that it can be different. But one thing is certain: if we as humanity want to survive we need new value dynamics. And with the arrival of cryptocurrency we finally gain some new ways to experiment.

Spending money decides in what world we live in. Lets spend it wisely.