Why cash is a cutting-edge technology for maintaining a balance of monetary power
It's point 4 that finally answers the question in a way that can be used in the pub. the bike/uber analogy, I think, nails it. other analogies (such as lift/stairs) are also helpful.
Right on target Brett! If we allow cash to fade out of use it’s never going to come back. Society needs to think deeply about the consequences for the less affluent and about the powerlessness of the individual in an entirely digitally controlled world.
Excellent article! I am a newer subscriber and working to read through your introductory links. Thank you for doing this. This is a subject of much importance and one that I continually strive to learn more about.
As someone who works in local food systems, and has studied currencies, I see overlap between what is happening within both systems.
Again, thanks for writing this. Looking forward to the next part.
Very good arguments presented here 👍 we need people in charge to actually look at these types of concerns instead of only listening to lobbyists, which are ONLY trying to increase their companies value and control 🙈
brilliant work. I was kinda sure we needed to keep cash, but you explain why perfectly and with astounding clarity. I loved the uber/bicycle metaphor as well as the casino chip metaphor. Also you're quite correct to challenge the "narrative" of Big Banks and Megacorps. It is all about controlling the narrative; as many corrupt governments, companies and institutions, and the people who run them know full well.
Loving your insights Brett, and so wish I could hear you strumming your guitar again. Hopefully one day soon.
This is great, thank you!
It's all good, but I thought the particularly powerful part was bikes vs Uber, when you compared complete digitisation to complete uberisation. But I fear many won't have made it that far. Worth breaking out into a smaller standalone piece?
One more, tiny, typo
Cash, by contrast, in inherently inclusive
in-->is //is inherently...
"Cash withdrawals spike" -- not really in the modern, American, experience for some long time now--bank runs--until, very surprisingly, this year. Taking a look at those panic cash withdrawals--not withdrawn in coin, but simply transferred to other banks. Surprisingly, if we weren't suddenly living in such extraordinary times, that is.
Great article Brett. I'd also like to point out that a cashless system will also end up being more expensive and maybe even less efficient.
To take your Uber argument one step further, you only need to look at Singapore. Here the gov allowed Uber and Grab to decimate the taxi ranks and then, when their "low prices and discounts" (typical digital carrots) had almost beggared them, they were allowed to merge and operate without competition for over a year, until Gojek (another Uber lookalike) showed up. The average fares are much higher today than they ever were before as they look to recoup their losses, the common or garden taxi is tough to find and impossible to hail, and I'm still not sure if the two companies in question are any more profitable than they were before - a real worry.
My fear is that a cashless society will not only have to surrender privacy, autonomy, resilience and choice; it may very well end up paying more for it.
"Not only can you come across as reasonable when arguing for cash, but you can also come across as a lot more innovative and imaginative that the average mainstream pundit." "...that the average mainstream"-->"than the average..."
Thanks, Scott, for that brilliant defense of cash. I've shared it widely.
Thank you, as always!
Always a fascinating read, Brett, and you're on to something with the bike/cash analogy...
Here's an idea for you to type about: https://www.goldback.com/
Nice article with many clear points.
What are your stances on decentralized and pseudonymous forms of money such as Bitcoin and Ethereum? Or even privacy coins, such as Monero? They would fulfill the properties of cash, while being also digitally transferable and programmable.