Will That Be Cash, Debit, Gold or Time?


Will That Be Cash, Debit, Gold or Time?

With all of the uncertainty going on in the world markets, there are movements going on with respect to currency. The number of ways to pay for something is increasing, and the choices are becoming more varied. The currency that is being used at a given time is reflection of the state of affairs at that time.

Cash and check issued by a government or a bank are well known. What about gold? This has been around much longer than modern forms of money, and it is still recognized as currency by central banks and governments. It is used by consumers too in the form of jewelry or coins.

What about time? There are movements happening around the world where goods and services are being paid for by time. When people hear this, they tend to hear the word barter, and think that they are being brought back to the “stone age” and that this is limiting.

Have you ever bought bus tickets? These tickets are currency for riding the bus. Have you ever done your friend a favour and had it returned likewise? This is a form of barter. People don’t see this as a real transaction, but what else do you call it? These are all examples of a type of barter Aren’t people paid a wage by the hour? If you just translate your work into hours instead of dollars, what is the difference? The common answer would be that hours cannot be exchanged. This is where the idea of a time bank comes in. This operates just like another database, where the hours you work are logged into it and exchanged for different services. (1) (2) (3)

Another concept that is being tested is mobile money. Instead of cash and check, services are being paid for by mobile devices with credits. This is similar to traditional cash except that it uses technology instead of a traditional bank balance. (4)

Currency has evolved many times in history – and everything can be used as money. (5)(6) Since the world markets are rapidly changing, the currencies may change as well. Why wouldn’t it happen again in the future?

Sources:

1)      http://www.timebanking.org/

2)      http://www.huffingtonpost.com/mira-luna/local-money-creates-wealt_b_1071976.html

3)      http://www.washingtonpost.com/business/economy/in-spain-financial-crisis-feeds-expansion-of-a-parallel-euro-free-economy/2012/08/27/53ed3552-e00f-11e1-a19c-fcfa365396c8_story_1.html

4)      http://www.economist.com/node/21560878

5)      http://en.wikipedia.org/wiki/History_of_money

6)      http://library.thinkquest.org/28718/history.html

Advertisements

About joetheinvestor
Joe Barbieri has Bachelors degrees in both Civil Engineering and Commerce from the University of Toronto. He has worked in the Financial Services field for over 12 years, covering positions from Retail Customer Service and Fund Accounting, through to Investment Research on the Institutional side. He has worked in 5 companies, spanning banks, a mutual fund, a Consulting Firm and a Large Canadian Pension Plan. He currently has a Chartered Financial Analyst designation (CFA) from the CFA Institute. He has recently published articles in Pension and Benefits Monitor Magazine as well as the Internet.

2 Responses to Will That Be Cash, Debit, Gold or Time?

  1. Reblogged this on allbusinessbarter and commented:
    Here is a great article about bartering! Please share with others if you find it great information.

  2. Hey There. I discovered your blog the use of msn. This is a really neatly written article. I’ll make sure to bookmark it and return to read more of your helpful info. Thank you for the post. I’ll certainly return.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: