The Future of Money and Barter Trade. Which One Will Eventually Work for The Coming Generations? 

Cash is expected to disappear in the next decade (WebMaster, 2021)

For the last 5,000 years, money has played a role in human history. Before money came in, history shows that people used barter trade or bartering. Batter trade involves the exchange of goods and services from one person to another. For example, people would exchange a pair of shoes with a bushel of maize. However, the arrangement to ensure people came to an agreement took time as the deal needed to be altered to ensure the individuals agreed to the terms. Over centuries, a type of currency developed that promoted easy trading of items like weapons, animals, salt, foods among other goods. The currency was termed as a medium of exchange. Although the medium of exchange seemed effective in evaluating the value of the items, it also encouraged a slight negotiation. Currency as a medium of exchange spread worldwide and still survives today.

In the present world, people no longer define money as a medium of exchange but have based their definition on what money does. Money gives people good education, cars, houses and make them travel worldwide. A crucial aspect of money is its flexibility with technology. Money has become digital, and people can now pay for services and goods by scanning their phones in the shops or tapping screens through mobile apps. Money has proven to be a highly efficient and convenient mean of exchange, facilitating cross-border transactions and enabling the division of labor and specialization in economies. However, the increasing digitization of money and the emergence of decentralized digital currencies like Bitcoin are challenging the traditional notion of money as a government-backed currency.

While money has many benefits and is an essential tool for facilitating transactions and economic growth, several challenges come with its use. Here are some of the critical challenges brought by money.

Inequality: Money can exacerbate economic inequality, as those with more money can often accumulate even more wealth and resources. This can create a cycle of poverty and disadvantage for those who have less access to money and financial resources.

1. Corruption: Using money can also contribute to corruption and unethical behavior, as people may be tempted to engage in fraudulent or illegal activities to gain access to money or financial resources.
2. Debt: Money can also lead to high levels of debt and financial instability, as individuals and governments may borrow more money than they can realistically repay. This can lead to economic crises and financial instability.
3. Environmental impact: Pursuing money and economic growth can also have negative environmental consequences, as businesses and individuals may prioritize profit over sustainable practices and environmental stewardship.
4. Consumerism: The use of money can also contribute to a culture of consumerism, where people feel pressure to constantly buy new products and services to keep up with societal expectations and trends. This can lead to overconsumption, waste, and environmental degradation.

On the other hand, barter trade has also seen a resurgence in recent years as people seek alternatives to traditional monetary exchange. Bartering can be a more personal and community-based form of exchange, allowing for the direct exchange of goods and services without the need for a third-party intermediary.

Ultimately, the future of exchange will likely be shaped by a variety of factors, including technological innovation, economic and political conditions, and cultural and social preferences. It's possible that we may see a hybrid system emerge, where traditional money and digital currencies coexist with barter trade in various forms, such as local exchange trading systems (LETS) and time banks. Therefore, it's difficult to predict with certainty which form of exchange will eventually prevail in the future, but it's likely that both money and barter trade will continue to coexist and evolve alongside each other. While money has many benefits, it's essential to be aware of the challenges and limitations of its use and work towards creating a more equitable and sustainable economic system.

References

Local exchange trading systems definition. (2011, August 30). Investopedia. https://www.investopedia.com/terms/l/local-exchange-trading-systems-lets.asp

Jones, J. (2020, August 27). Could bartering become the new buying in a changed world? BBCpage. https://www.bbc.com/worklife/article/20200821-the-rise-of-bartering-in-a-changed-world.

WebMaster (2021, April 5). Future of money: Cash will disappear within two decades!  Techopian - The conversation and voice for ethical technology. https://www.techopian.com/future-of-money-cash-will-disappear-within-two-decades/.

Trinidad, C. (2022, December 7). Bartering. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/economics/bartering/.

Wallstreetmojo Team. (2023, January 30). Medium of exchange. WallStreetMojo. https://www.wallstreetmojo.com/medium-of-exchange/.