Current Currencies

According to Bas Reu discussions about new currencies in this age of sharing are not new. Many have done research about other means of value compared to money as we know it. During the rise of the internet, we exchange value more easily without the need of money. And then there is this other characteristic what really differs from money: abundance. Nowadays there is an abundance of knowledge.

We have shifted from an economy based on scarcity to one based on abundance. The control of products or distribution will no longer guarantee a premium and a profit. . . . We are entering a post-scarcity economy in which Google is teaching us to manage abundance, challenging the bedrock rule of economics, first written in 1767: the law of supply and demand.

Sharing knowledge has one distinctive characteristic which is it's value. Knowledge (in every form, such as experiences or market knowledge) has value. Value for the sender and it’s recipients. But real value is created when people come back to the sender with unexpected responses which can lead to new insights, new ideas, or combinatorial innovation. See, for example, what happens in questions and answers sites such as Quora, or in forum such as the ones that Linkedin has. People find each other, discuss topics, and collaborate which is good for all participants and spectators.

Sharing knowledge is not the same as giving up competitive advantages. In an age where sharing is easy, you’d better use it in your advantage. Of course, first things first, you still need enough money to make a living, but on top of that we exchange more and more without the intervention of real money. So you can ask yourself what our currency really is.

How do we make our choices?

Do you think your mind is capable of independent judgment and largely directs the course of your life? Do you think that most of your decisions in life have been the product of your rational, conscious self? Do you believe you are in control of your life? Do you cherish ideas such as self-expression, a sense of autonomy and a distinct, self-authored identity? Probably most of the people will answers yes; besides given the pervasive culture we live in, that reinforces all these ideas, it would be odd for a person to provide a negative reply .

When it comes to building the physical world, we kind of understand our limitations. We build steps. And we build these things that not everybody can use obviously. (Laughter) We understand our limitations. And we build around it. But for some reason when it comes to the mental world, when we design things like healthcare and retirement and stockmarkets, we somehow forget the idea that we are limited. I think that if we understood our cognitive limitations in the same way that we understand our physical limitations, even though they don't stare us in the face in the same way, we could design a better world.

We value things more when we pay a higher price for them. The Bayer aspirin and the Rolex watch seem valuable because of how much they cost, not because they're better in practical terms than a generic aspirin or a Timex. Relativity distorts reality. We might be earning 10 times more money than we earned for the same work a decade ago, but we're convinced that we're underpaid if the people around us are earning more.

Dan Ariely states "Consumers make numerous decisions on a daily basis. Therefore by understanding the underlying mechanisms that drive the particular choices consumers make is invaluable". His goal is to argue and demonstrate that individuals sometimes make decisions according to preset rules and not their preferences, and that such a decision making mechanism may lead them to make decisions that don’t always maximize their utilities.

The more our minds are befuddled by falsehood, misperceptions and illusions – the less able we will be to determine correct courses of action and make wise decisions. Our view of reality is like a map with which to negotiate the terrain of life. If the map is true and accurate, we will generally know where we are, and if we have decided where we want to go, we will generally know how to get there. If the map is false and inaccurate, we generally will be lost.