Money Is A Social Phenomenon...

in #leofinance4 months ago

society money.png

I was reading the Cardano white paper when I stumbled upon this wonderful little phrase -- "Money Is A Social Phenomenon." I immediately realized that the minds behind the creation of ADA(Cardano) recognized something invaluable that Hive's community has proven to be true.

To give you a little context, author Charles Hoskinson was comparing the survivability of cryptocurrencies when they go through a hard fork (such as our community went through with Steem) to the survivability of fiat currencies when a superpower (nation) splits during a governmental collapse and civil war.

The causes of both events are often similar. Disagreements about policy, ethics, morality, and future interests/goals, among other friction-causing elements can become the spark that turns a community into a gas fire -- violently.

In general, conflict about the basic functionalities of a nation and its government cause division, and the same is usually true for blockchains. We may not be picking up guns or threatening to shove nuclear warheads down each other's throats, but there is conflict, nonetheless.

So, what's the difference between some blockchains and the roaring nations?

When a nation (superpower) collapses, one thing seems to remain true: The currency of that nation survives -- but with cryptocurrency, that is not always the case.

Why is that? And why was it the case when the Hive community hard forked?


The survival of the currency is dependant on the community who uses it and the production of valuable goods and services.


When a nation is divided, the people still remain, trying to get on about their lives and pick up the pieces. Much of the society is still intact, and although the major government has failed, the people must go on living.

Those people still need a way to trade goods efficiently, and thus, they use the only money in their pockets to buy and sell -- to support their own needs and their families.

(Not to mention, unless they are absorbed into another nation's government, it's much more viable to rely on the system in place even if it's faulty than to attempt building a new financial system in the midst of great tumult.)

Basically, if the community survives and continues to produce materials of value to be traded, then the currency survives.

According to this principle concept, when a blockchain community is divided, if it has a strong community and continues to produce useful goods and services, it should survive.

It's a great deal about sentiment -- isn't it?

Kind of like -- community morale. When the going's good, it's infectious. It has the potential to pull others in with FOMO -- but if the community loses faith?

DOWN SHE GOES!!!

So, money (currency) really has no value. It's people who have, hold, produce, and trade value. It is my belief that the conglomerate conviction of the masses is the meter by which value is gauged -- and those convictions are produced by the internal sentiment and unity of smaller communities.

Take large companies like Apple and Google for example. They've discovered (along with many others) that a singular will and vision derived from a unified and outward-facing company culture is one of the major keys to massive success.

It's all about the sentiment. It's all about faith. It's all about vision.

Back to the Cardano White Paper...

Cardano's mission is to take what we've learned from successful blockchains and implement the same measures into their own to create success. A principle concept within their model is to create a strong community -- something that will last.

They believe the road to success is in creating something that isn't built quickly by the young and money-hungry for profit. Instead, to be successful, it should be built slowly and methodically -- with lots of wiggle room for adaptations.

Does that sound familiar?

I just want you all to know, I have a lot of respect for all of you who have been persistent in building this community. You are all creating something great, and it looks like other blockchains see the value in your incredible mindset.

Cheers!