When I was younger, I saw a political cartoon entitled, “The Evolution of Money”. The cartoon was broken into 6 panels: Bartering — Trinkets — (gold) Coins — Paper Money — Credit Cards. The sixth and final panel was the ultimate expression of our monetary system: Frequent Flyer Miles.

I am proposing a hybrid system blending the best of both capitalism and socialism, taking advantage of internet technology, while concentrating primarily on labor — a Bitcoin of Labor — that is tabulated on the internet. The goal is to establish a peer-to-peer network based on labor but with a corresponding fiat (paper) money market value. Cryptocurrency is the next Evolution of Money.

Medium of exchange

As an example, one hour of labor could equate to $15. Work we deem more vital can be assigned a multiplier — one hour of medical treatment may correspond to four hours of restaurant food preparation. In most cases, however, wages are to be kept roughly equivalent to what the market system has already dictated. Fiat money would still be required for certain activities: such as auctions or construction bidding. We could tether the “Bitcoin of Labor” to a minimum wage (say $15), or we could aggregate “The 5 Questions” and develop a unique matrix.



Store of Value

One may argue that a chef at Bistro Vendome should make more than a chef at Casa Bonita — especially in light of the fact that Casa Bonita is the market leader in the production of e-coli bacteria. Accordingly, the owner of Bistro Vendome should place a multiplier on his chef’s labor value of, perhaps, 1.33x ($15 x 1.33 = $20). The multiplier would be determined by a combination of gross receipts and customer review. If a person chooses to challenge their income, a judge or arbitration panel could rule.



Unit of Account

As for Bruno Mars’s labor, it is a subjective valuation. But, I believe the labors of our finest musicians and entertainers belong in an elite evaluation category. They not only provide a service but also define our culture. But, if I can get Bruno Mars to perform for 5x my labor — plus iTunes and YouTube royalty fees — I’ll take it!!!

Why a Currency of Labor is Stable



While classical economists might suggest, “A currency of labor would be, by definition, inflationary.” In my opinion labor is neutral, if not deflationary. Technology enables us to work more efficiently, and smarter, which could lead us to eventually working fewer hours: 35–38 hours a week, or whatever we deem reasonable. And, even if labor is inflationary, in a Cryptocurrency World, I believe it will still be acceptable. Fiat money is inflationary too, and certain countries are consistently plagued by inflation. (Argentina, Venezuela, Zimbabwe) So, we’d be no worse off than we currently are.

What’s the Proper Retirement Age in a Labor Based Economy?

That question is not as different in the Crypto World as you may think. Today we pay into Social Security. Both systems require a decision on society: to account for and build in a (fair) retirement age. I believe 72 would be a fair and reasonable retirement age. We’ll call it “The Rule of 72”.

Standard of Deferred Payment (Credit):

Option 1: We continue to borrow as we presently do with fiat money.

Option 2: Individuals are not allowed to borrow — (for example, you have to “bank” 2000 labor units before you can have that shiny red car.)

Now, think of your favorite song…what’s it worth? The answer is: it’s priceless/infinite, just like the Mona Lisa is priceless/infinite. Otherwise we’d run out of paper money trying to buy it.

In conclusion, I believe this dualistic/hybrid economy fully satisfies all 4 functions of money. I’ll even add a 5th — (ideally) Money is a Motivator of People. And we have already witnessed what the built-in incentives of Crytocurrencies can do. If instituted:

1) Banks would not be too big to fail.

A new currency would make us less dependent on banks. Banks would become ancillary; and perhaps, “Just Right to Fail”. When the next crisis occurs, we will not be forced to bail them out; and Wall Street will not write themselves Bonus Checks.

2) We could devote more resources (labor, especially) to Healthcare and Education.

3) The Environment would be a priority (right now the Environment is losing vs. Capitalism)

In a world not solely driven by market forces, we could support currently more expensive energy

alternatives that are more environmentally friendly (e.g. solar and wind).

4) We could essentially eradicate homelessness/unemployment.

5) We could eliminate advertising.

6) Hedge against inflation.

7) Get money out of politics, resulting in a truer democracy.

Television networks funded by local governments could ensure equal airtime.

“And it ought to be remembered that there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Because the innovator has for enemies all those who have done well under the old conditions, and lukewarm defenders in those who may do well under the new. This coolness arises partly from fear of the opponents, who have the laws on their side, and partly from the incredulity of men, who do not readily believe in new things until they have had a long experience of them.” -Niccolo Machiavelli The Prince

Kindly answer ALL of THE 5 QUESTIONS.

1. Name your favorite local restaurant.

2. Name your favorite living musician.

3. Do you know the name of the head chef at your favorite restaurant? Now, (At your best) what is your labor worth, compared to his? 1x? 2x? 3x? etc.

4. Now, (At your best) what is your favorite musician’s labor worth compared to yours? 1x? 5x?

5. Who should be the highest paid members of society?



My Answers: 1. Bistro Vendome 2. Alma Deutscher 3. (Adam Branz) 1.5x, 4. (Alma Deutscher) 5x; (Yo-Yo Ma, John London, & Wynton Marsalis are 4x), 5. Musicians and Doctors

Steve Cannata is my uncle. And I miss him.