This article explores the reasoning behind why it is necessary to rethink money. It brings to light the problems surrounding traditional fiat such as hyperinflation and an over-powerful central government, by using specific countries as case studies to exemplify each issue.

We also introduce “Social currencies” such as the Brixton pound to validate how money as a community construct can solve the dilemmas posed by traditional fiat.

Centralized Government

There are typically terms of engagement governing social contract-based transactions, which include information regarding each party’s rights and responsibilities. Unfortunately, there is often a lack of trust between parties, and the need arises for a power structure to enforce the terms of engagement. In the case of fiat, the government steps in to legislate agreements previously entered into by voluntary and mutual consent.

The centralized authority establishes fiat, which operates based on coercive as opposed to voluntary market relationships. They virtually monopolize the exchange of value by seeking to eliminate or at least regulate alternative currencies.

Venezuela is a crucial case study that reveals what might be the most dangerous flaw of government fiat currencies; they make it easy for incompetent or corrupt…