Hello everyone! This is Nastya and TCP-MARKET. In the last publication, we touched on the topic of fiat money and its decline. The topic sparked huge interest, and we continue! Today we will talk about how much money is needed in the world and how the modern financial system works.
How much money is really needed in the world?
If we ask ourselves how much money is necessary for the global economy, the answer will surprise many. Currently, there is a huge amount of fiat money in circulation. But how much of it really works?
1. Physical money:
Paper money and coins make up a small part of the total money supply. Most of them are used for small transactions and represent the 'live' part of the economy.
2. Cashless money:
The vast majority of money exists in digital form — these are records on bank accounts. They do not physically transfer from one person to another, but simply change the 'correspondent'. For example, when transferring money, the bank simply changes the records in the system.
Is all this money working?
It cannot be said that the entire volume of money in the system is actively participating in the economy. Why?
Liquidity:
The money that is in accounts often does not participate in the creation of new goods and services. It 'gets stuck' in financial institutions.
Banking Passivity:
Banks earn money simply by operating records in their systems. They do not produce goods, nor do they create jobs. They generate income from redistributing money, which essentially changes nothing in the real economy.
Parasitism on the system:
A system where banks receive colossal income without participating in real production generates injustice. This money does not work for society, but only increases the capital of banks and elites.
Why is this unfair?
Imagine: banks generate profits without investing anything in the economy. They simply redistribute numbers recorded in accounts. This is reminiscent of a game of Monopoly, where money passes from one hand to another, but nothing new is created.
Is it fair that financial institutions receive huge incomes without creating real value? This is the main question that calls into question the effectiveness of the modern financial system.
What can be done?
1. Rethink the role of banks:
Financial institutions must participate in the real economy: invest in production, develop infrastructure, support small and medium-sized businesses.
2. Implement alternative models:
Cryptocurrencies, such as TCPcent (TCPct), demonstrate that money can be transparent and efficient. They operate without intermediaries, directly connecting people and businesses.
3. Stimulate the real economy:
Money should be used to create new jobs, products, and services, not for speculation and accumulation of assets in banks.
Unlike the fiat system, cryptocurrencies provide:
Transparency: Every transaction is recorded on the blockchain, and all participants see the movement of funds.
Efficiency: Cryptocurrencies do not require intermediaries, which excludes parasitism on the system.
Real value: For example, TCP-MARKET and its tokens TCPct and TCPcredit create an ecosystem where money works for people, not for banks.
We live in an era when the financial system needs to be rethought. Fiat money, which was supposed to be a tool for economic development, has turned into a means of accumulating passive income.
Cryptocurrencies show that it is possible to create systems where money works for the benefit of society. This is not only promising but also fair.
Let's discuss! Share your thoughts in the comments.
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