How the Internet of Things will make money as we know it obsolete

Abstract

Money almost rivals language as an amazing and ubiquitous invention, or maybe better put, convention. We have trusted each other with exchanges of shells, salt, coins, paper, and now ephemeral computer bits. What money you give to me for what I have or do, I may later give to another in like manner. Liquid value. It is believed that a currency arises naturally, as a durable, portable, and universally desired commodity. Gold and silver fit that bill nicely. Chairs and apples don't (at least for now). For a long time, however, nations have issued fiat money, which is backed by trust in the government to honor its value. This allows government the power to rev and throttle the economy more efficiently as need arises or, more cynically, as political machinations dictate. In the light of coming technology, maybe it is time to revisit some old ideas about money. Money has become an abstract entity, untethered from material associations. Fortunately, our brains are fully capable of dealing with abstractions. Or are they? Abstractions are distillations that have a tendency to lack impact. For example, numerous studies reveal the limitations of email and texting, forms of communication that fail to carry visual and audible cues that are present in the face-to-face encounters that people are so well adapted for. Likewise purely factual information can fail to convey the emotional and motivational impact of a topic, which might be hazardous if the topic is wealth. If we go back in history, wealth takes on more of a visible, tangible form. For example, it has taken on the form of crafted artifacts, livestock, or the dimensions of a dwelling. These are physical commodities. If a rich person has fifty sheep, there are fifty bleating reminders of that wealth. In societies that use commodities for money, the wealth of the society is grounded to actual resources, goods, and services; more so than an abstract currency printed by governments and doled out by banks. The manifestation of wealth and money in forms that people can see, touch, and sense, even if indirectly, fits into a conceptual framework that generally resonates more deeply with people.