Can we afford to lose touch with money?

[bornil267645]

Why are we talking about replacing one with another. I mean bitcoin is so good because we have the bad effects of the fiats. And if fiat system is replaced by bitcoin, it will lead to some misjudgement at some point. Let bitcoin be what it is. The perfect alternative to fiat.

[johnyj]

Money is just an imaginary concept, but everyone need it: They need something that can be used as a standard unit of value, so that they can easily measure the value of everything else in the world, that is money in their eyes. People produce rulers to measure length, they also produce money to measure value

If there is no such kind of standard unit, for example everything's bitcoin price fluctuates day to day, then everyone will lose their mind, since they feel unsafe, and can not predict the future and make economy plan accordingly

So because people have such kind of accounting demand, it gives banks a mission to create fiat currency that give people an impression of constant value

In reality, different currency's value always fluctuate against each other, but people take it as granted that their domestic currency is the standard unit of value. So the stability of fiat money's value is automatically maintained by people's consensus domestically, not supply and demand (or to say, the demand for money is infinite thus the supply is always limited, does not affect its value)

[goosoodude]

I have done this experiment with my kids, and it's remarkable how much less they spend, when they handle money.
The touching and the feeling of a physical thing, kind of bonds you to it. This is why vending machines and slot machines in gambling replaced the coin operation in my opinion, with smart cards. The emotional bond to money is broken and people tend to spend more. 

Bitcoin makes a lot of other things easier, but it might increase spending habits and increased debt. 

It is recommended by some financial experts (especially Dave Ramsey) to use a cash envelope for ALL spending.  At the beginning of the month you fill all categorized envelopes with the cash you need, then use each one for only that category (ie gas, food, household goods, etc).  This requires a strict budget to be created FIRST with all of your spending accounted for.

A LOT of people have paid down or paid off their debt by controlling their spending using this method. ..I've been meaning to try it myself

That is a nifty way of handling things. Though it might be hard to do for most since many things are withdrawn from your bank account and you can't change that since it's the default and no other ways are possible. On top, paying some things with cash would involve a lot of work.

I don't know how practicable that way is.

[TrueBeliever]

I have done this experiment with my kids, and it's remarkable how much less they spend, when they handle money.
The touching and the feeling of a physical thing, kind of bonds you to it. This is why vending machines and slot machines in gambling replaced the coin operation in my opinion, with smart cards. The emotional bond to money is broken and people tend to spend more.  

Bitcoin makes a lot of other things easier, but it might increase spending habits and increased debt.  

That is true. When you hold physical cash you will think twice before spending it. But same is not with the credit cards,debit cards or even bitcoins as you know that paying with credit cards gives you some added time to pay so people spend more  but same doen't goes with physical cash.

The thing that I can't understand is all this stuff that people fight over kids learn in school, and NO ONE cares that children aren't taught financial literacy in high school!  I mean ALL students should have a mandatory financial education class that teaches the lifetime value of living within your means, the dangers of auto loans, credit card debt, and building wealth.

I think the fact that this stuff is excluded from curriculum is sad and frankly intentional.  It would be the best way for young people to start their lives out on the right foot, be able to buy a house/build wealth from early on, not learn the hard way after they get out of college with 100k in student loans and 20k in credit card debt.  Starting out your adult life like that is not good, and makes it tough to gain financial independence.  Then again, the debt masters of the world want you to remain a debt slave forever...

financial literacy could/should be taught in the home.  firstly by being a good role model. and secondly by building on the maths they learn in school to explain real life financial applications.  Read the book Rich Dad Poor Dad to see how all this fits together.

[MF Doom]

I have done this experiment with my kids, and it's remarkable how much less they spend, when they handle money.
The touching and the feeling of a physical thing, kind of bonds you to it. This is why vending machines and slot machines in gambling replaced the coin operation in my opinion, with smart cards. The emotional bond to money is broken and people tend to spend more.  

Bitcoin makes a lot of other things easier, but it might increase spending habits and increased debt.  

That is true. When you hold physical cash you will think twice before spending it. But same is not with the credit cards,debit cards or even bitcoins as you know that paying with credit cards gives you some added time to pay so people spend more  but same doen't goes with physical cash.

The thing that I can't understand is all this stuff that people fight over kids learn in school, and NO ONE cares that children aren't taught financial literacy in high school!  I mean ALL students should have a mandatory financial education class that teaches the lifetime value of living within your means, the dangers of auto loans, credit card debt, and building wealth.

I think the fact that this stuff is excluded from curriculum is sad and frankly intentional.  It would be the best way for young people to start their lives out on the right foot, be able to buy a house/build wealth from early on, not learn the hard way after they get out of college with 100k in student loans and 20k in credit card debt.  Starting out your adult life like that is not good, and makes it tough to gain financial independence.  Then again, the debt masters of the world want you to remain a debt slave forever...

financial literacy could/should be taught in the home.  firstly by being a good role model. and secondly by building on the maths they learn in school to explain real life financial applications.  Read the book Rich Dad Poor Dad to see how all this fits together.

Yes, I 100% agree that it should be taught in the home, but it definitely is not.

Not to mention, the current generation of parents (for the most part) are under the impression that they need everything NOW, they NEED a new $600 iphone every year, EVERYTHING needs to be financed, they think a car payment is just part of life, and that you should buy a house because they'll let you with only 3% down!  How can these people who are financially illiterate teach anything about good money/spending/saving habits?

My point is that this information has not been taught to most people, and now a lot of people are starting out adult life "in the hole" with credit cards, student loans etc.

Take this as an example of typical financial knowledge of a college student:

http://dailycaller.com/2015/07/20/girl-blows-90k-in-tuition-money-on-clothes-and-vacations-then-blames-her-parents/

[bitcart]

The only reason I don't use 100% e-money is because not all merchants will accept it (yep, even for traditional forms of payment like visa - when you think of certain bars, small shops, etc.)

[cellard]

One of the biggest contributing factors to debt in the world, is the fact that we have literally lost touch with our money. The wide acceptance of payment methods where you do not physically trade with something you touch, for example Credit cards, debit cards and electronic money, could make it easier to spend money.

In South Africa, a company is testing this theory with a reality series, where the contestants are given their monthly salary in coins. The idea behind this is to see what impact this has on the spending habits of these people, when they pay for everything in physical coins.
 
Source : www.onerandfamily.co.za

Question 1 : If Bitcoin or Crypto currencies replace fiat, would you spend more or less?

Question 2 : Do you think physical contact with your money, makes you spend less?

Question 3 : Would we have less debt, if we paid for everything in fiat?

Yes we can, it's the future. Using physical coins is something of the past. The problem is if the electronic system that replaces physical coins are legit or not, and Bitcoin is the most legit thing ever, so im not afraid to let go past practices such as physical trading.

[Amph]

The only reason I don't use 100% e-money is because not all merchants will accept it (yep, even for traditional forms of payment like visa - when you think of certain bars, small shops, etc.)

same for me, but i only need two big thing to accept bitcoins and then i can go full bitcoin

supermarket and amazon(but here we have open bazar coming, so we can try to forget amazon), bills can be already payed in bitcoin with some service online like bitbill.eu

[Mickeyb]

Haven't we already lost a touch with money? I mean I pay everything electronically nowadays. So paying with Bitcoin would not make a great difference in this sense, at least my opinion.

[Mickeyb]

The only reason I don't use 100% e-money is because not all merchants will accept it (yep, even for traditional forms of payment like visa - when you think of certain bars, small shops, etc.)

same for me, but i only need two big thing to accept bitcoins and then i can go full bitcoin

supermarket and amazon(but here we have open bazar coming, so we can try to forget amazon), bills can be already payed in bitcoin with some service online like bitbill.eu

Bitbill.eu is truly amazing, I started using their services lately. I mean whatever we can do to help the network and mass adoption.