WEBVTT - Cold Hard Cashless 0:00:00.160 --> 0:00:07.200 Brought to you by Toyota. Let's go places. Welcome to 0:00:07.360 --> 0:00:16.200 Forward Thinking. Welcome everyone to the Forward Thinking Podcast, where 0:00:16.200 --> 0:00:18.840 we talk about different aspects of the future and what 0:00:18.880 --> 0:00:22.240 it means to us. I am Jonathan Strickland, I'm Lauren Vogldon, 0:00:22.400 --> 0:00:25.479 and I'm Joe McCormick. And Lauren and Joe. Today we 0:00:25.520 --> 0:00:29.080 are going to talk about cash, cash, money, Who's making 0:00:29.080 --> 0:00:33.280 all the cash, who's carrying the cash, who's rolling Apparently 0:00:33.360 --> 0:00:36.680 you are know, I not not nearly as much as 0:00:36.680 --> 0:00:39.080 I would like people who couldn't see he was making 0:00:39.120 --> 0:00:43.199 the little fingers fingers yeah, yeah, but so, but so 0:00:43.240 --> 0:00:45.839 why does this why is this important anyway? Why is 0:00:45.880 --> 0:00:49.280 there a culture about who has cash? And why we 0:00:49.360 --> 0:00:52.640 don't know why? And why do we even have cash? Well, 0:00:52.680 --> 0:00:55.080 all right, so let's let's think a little bit about 0:00:55.120 --> 0:00:58.400 about the concept of value. All right. So, in the 0:00:58.400 --> 0:01:01.680 concept of value, we're talking about things that people need 0:01:01.920 --> 0:01:07.240 or want, really want, proceeds need because you may both 0:01:07.319 --> 0:01:09.520 want it and need it, or you may just want it. 0:01:09.600 --> 0:01:12.640 Either way, you consider that something has value because you 0:01:12.720 --> 0:01:16.920 want it. Correct, all right. So, Now, if we go way, way, way, 0:01:16.959 --> 0:01:20.560 way way back, human beings might be very good at 0:01:20.640 --> 0:01:24.080 doing certain things, and they're good enough so that it 0:01:24.200 --> 0:01:26.360 helps them, and maybe they're so good at it that 0:01:26.400 --> 0:01:30.440 they can help other people. So, for example, Lauren, turns out, 0:01:30.720 --> 0:01:34.760 you're really really good at hunting mammoths. That is actually 0:01:34.800 --> 0:01:38.080 a science fact. I am Lauren, who is how tall 0:01:38.080 --> 0:01:41.160 are you? Lauren? Five to? And she can take down 0:01:41.160 --> 0:01:45.600 a mammoth no time flat, Whereas I am terrible at 0:01:46.280 --> 0:01:49.320 at at hunting mammoths. However, it turns out I've got 0:01:49.320 --> 0:01:52.080 a mean hand with a brush, and I make the 0:01:52.120 --> 0:01:56.640 most amazing cave paintings. They are phenomenal, and Lauren really 0:01:56.720 --> 0:01:59.680 wants to deck out her her cave with some great 0:01:59.720 --> 0:02:02.880 pains of a five foot to pixie taking down a 0:02:03.000 --> 0:02:06.800 mammoth with nothing but a stone knife. However, she can't 0:02:06.880 --> 0:02:10.160 draw at all, so she and I work out this 0:02:10.160 --> 0:02:13.600 this arrangement. I'm going to draw some stuff for her. 0:02:13.639 --> 0:02:16.200 She's going to give me some tasty mammoth meat to 0:02:16.320 --> 0:02:19.800 help me tied over those long nights where I'm starving 0:02:19.840 --> 0:02:23.480 because I can't catch anything. And we have worked out 0:02:23.520 --> 0:02:26.000 this system of trade, wherefore a certain amount of work 0:02:26.080 --> 0:02:28.960 she gives me a certain amount of food. And that 0:02:29.320 --> 0:02:31.200 was kind of the way things worked. It was sort 0:02:31.200 --> 0:02:34.000 of a barter system. But then let's bring a third 0:02:34.040 --> 0:02:38.000 person in Joe. Now, Joe, Uh, what's your amazing talent 0:02:38.080 --> 0:02:40.400 in this crazy world? Or do you want me to 0:02:40.440 --> 0:02:42.640 just give you one. I'm really good at setting things 0:02:42.680 --> 0:02:45.280 on fire, right, I have the secret from the gods, 0:02:45.320 --> 0:02:47.680 and I'm not going to tell anybody else what it is. Right, So, 0:02:48.040 --> 0:02:51.800 Joe has discovered the secret of fire, which both a 0:02:51.880 --> 0:02:56.640 mazes and frightens Lauren and myself. Now now Lauren, as 0:02:56.680 --> 0:02:59.840 it turns out, she really would like to have cooked 0:03:00.040 --> 0:03:04.840 mammoth meat. But Joe, however, has somehow fallen onto a 0:03:04.960 --> 0:03:07.960 store of salmon. It's just a huge amount of standing. 0:03:08.000 --> 0:03:11.560 He has no need for mammoth meat. However, Joe would 0:03:11.600 --> 0:03:14.360 like some some cave paintings at some time. But me, 0:03:14.560 --> 0:03:18.160 I happen to like my mammoth tartar, so I don't 0:03:18.200 --> 0:03:23.080 really care about the fire thing. I'm okay, So you 0:03:23.120 --> 0:03:26.560 can't have any So, so we we've got these three people. 0:03:27.600 --> 0:03:32.399 Various people could really benefit from other folks uh contributions, 0:03:32.440 --> 0:03:35.840 But but there's no incentive to contribute. However, if we 0:03:35.920 --> 0:03:41.400 created some form of object that represented value, so that 0:03:41.520 --> 0:03:45.080 we would say x number of this is equal to 0:03:45.400 --> 0:03:49.040 one cave painting, or one portion of mammoth meat, or 0:03:49.200 --> 0:03:54.080 one magical creation of fire. Then we could end up 0:03:54.160 --> 0:03:56.760 using that as a method of exchange between one another, 0:03:57.320 --> 0:04:01.000 and this would allow us to have to to uh 0:04:01.000 --> 0:04:04.400 to give each other the things they need without it 0:04:04.440 --> 0:04:08.000 actually being an altruistic gift. We're actually getting something back 0:04:08.040 --> 0:04:11.040 in return, and that's a representation of value that we 0:04:11.120 --> 0:04:14.280 can then use with someone else to get something we want. 0:04:15.200 --> 0:04:18.440 That's the basis of cash, right, sure, well you so 0:04:18.560 --> 0:04:20.960 you're talking about the creation of an economy, But of 0:04:21.000 --> 0:04:25.080 course an economy exists before cash does, and cash is 0:04:25.120 --> 0:04:29.240 not necessary to have an economy. That's true, Um, but 0:04:29.400 --> 0:04:33.160 what does what exactly does cash do? It makes everything 0:04:33.240 --> 0:04:39.440 more convenient. By establishing one thing that everybody wants you, 0:04:39.440 --> 0:04:41.840 you cut way down on the amount of you know, 0:04:42.080 --> 0:04:44.120 middlemen you have to go through to make all the 0:04:44.160 --> 0:04:46.920 trades you need, especially an allergen of society. I mean, 0:04:46.960 --> 0:04:51.320 because this is a very relatively simple, little example example 0:04:51.320 --> 0:04:52.880 that we've come up with here, but once once you, 0:04:53.000 --> 0:04:55.520 I mean, these days, if I want a new car, 0:04:55.880 --> 0:04:58.599 then how many chickens is that? Yeah? And I don't 0:04:58.600 --> 0:05:01.600 really grow chickens mammoth. I I edit things, and so 0:05:01.680 --> 0:05:05.640 you know how many how many papers? Is that? Yeah? No, 0:05:05.720 --> 0:05:08.920 it definitely definitely gets more tricky as it gets more complex. 0:05:09.000 --> 0:05:11.440 So I've got a question here, Um, when we think 0:05:11.480 --> 0:05:16.880 about cash, we think about usually little physical objects that 0:05:16.920 --> 0:05:20.240 you have a quantity of, and each one represents a 0:05:20.360 --> 0:05:24.359 unit of wealth. How did we end up representing things 0:05:24.400 --> 0:05:26.839 that way? And how did we pick the things that 0:05:26.920 --> 0:05:29.800 we were going to use as as money as cash. 0:05:29.880 --> 0:05:32.120 It's interesting because if you look at the early forms 0:05:32.120 --> 0:05:35.440 of currency, they tended to be things that were uh, 0:05:35.760 --> 0:05:38.680 found in nature already. But we're really really nice or 0:05:38.720 --> 0:05:42.039 pretty to look at. So like cowary sells, Right, what 0:05:42.160 --> 0:05:45.960 is a cowary shell? Well, it's a little calcium nugget 0:05:46.080 --> 0:05:48.920 that grows on the back of a snail in the ocean, right, 0:05:49.480 --> 0:05:52.479 Why why is that worth something? So because they're pretty, Yeah, 0:05:52.520 --> 0:05:54.120 they're kind of pretty. Yeah, I mean these are the 0:05:54.120 --> 0:05:58.400 sort of thing. Yeah, yeah, you've seen calary shells. Like, 0:05:58.400 --> 0:06:00.400 like you said in the script for the Deo, we 0:06:00.440 --> 0:06:03.440 did like on on bracelets and necklaces. I mean people 0:06:03.440 --> 0:06:07.600 make jewelry out of it. Yeah, I actually did the 0:06:07.600 --> 0:06:14.040 the hang ten sign I did. Yeah, Hey, I love Hawaii. 0:06:14.360 --> 0:06:21.480 I love Hawaii. But yeah, so these things no intrinsic value, right, 0:06:21.560 --> 0:06:26.240 It's not like water or meat or seeds anything that 0:06:26.279 --> 0:06:29.279 has like a really practical use, is it. No? No, 0:06:29.440 --> 0:06:32.560 it's it's something again that just people wanted it. They 0:06:32.600 --> 0:06:34.880 thought it was pretty, and then it ended up being 0:06:35.640 --> 0:06:39.840 the representation for things that have direct value to us. 0:06:40.360 --> 0:06:42.880 And of course there's kind of uh when you think 0:06:42.920 --> 0:06:46.280 about how the first currencies get started. There has to 0:06:46.320 --> 0:06:48.520 be kind of a follow the crowd thing going on, 0:06:48.640 --> 0:06:53.160 doesn't there that? Um, only a critical mass, like a 0:06:53.240 --> 0:06:56.680 certain amount of the population has to decide that they 0:06:56.720 --> 0:07:01.040 all want something before everybody wants it. Be cause, if 0:07:01.160 --> 0:07:03.560 I don't know what that number is, say maybe sixty 0:07:03.680 --> 0:07:07.440 sevent of people can be guaranteed at all times to 0:07:07.480 --> 0:07:10.040 want cowry shells, Well, then if you're part of that 0:07:10.080 --> 0:07:13.280 other thirty percent, you'd be stupid not to want them, 0:07:13.320 --> 0:07:16.400 also because you could trade them to all those people 0:07:16.400 --> 0:07:18.640 who do want Right. But if it's only five percent 0:07:18.920 --> 0:07:22.640 who find calory shells to be really pretty, then there's 0:07:22.640 --> 0:07:26.080 no value to them to the larger society. Right, So, 0:07:26.480 --> 0:07:30.640 if for example, the United States suddenly decided that dollars 0:07:30.640 --> 0:07:33.720 and coins really didn't have any value to them whatsoever. 0:07:33.800 --> 0:07:36.880 We would be in an economic crisis. It's kind of 0:07:36.880 --> 0:07:38.720 crazy when you think about that, but it's it's a 0:07:38.760 --> 0:07:40.840 it's a belief system almost more than a more than 0:07:40.920 --> 0:07:43.120 anything else. It really is. It really is when you 0:07:43.160 --> 0:07:46.080 think about that, I mean, it's a popularity contest for 0:07:46.120 --> 0:07:50.720 little objects. Yeah, and you know, in the United States historically, 0:07:50.840 --> 0:07:53.680 be quite a few years ago now actually, uh, the 0:07:53.760 --> 0:07:57.080 dollar was based off the gold standard, meaning that a 0:07:57.400 --> 0:08:01.160 dollar bill represented a certain amount of actual gold, so 0:08:01.240 --> 0:08:03.760 that that you can actually take it to the government, right, 0:08:03.840 --> 0:08:06.480 you can go to them and say give me my gold, right, yes, 0:08:06.520 --> 0:08:09.440 Because it was essentially a note that said this is 0:08:09.480 --> 0:08:11.840 worth this x amount of gold, and the gold was 0:08:11.920 --> 0:08:15.200 in some reserves that were in the United States. We 0:08:15.240 --> 0:08:17.360 got off the gold standard, and some people got upset 0:08:17.400 --> 0:08:19.800 about that. I think that's really funny because the only 0:08:19.840 --> 0:08:22.080 reason gold has any value is because we think it's 0:08:22.080 --> 0:08:25.480 pretty and it's hard to get to That's the only reason. Right. 0:08:25.520 --> 0:08:30.200 There's nothing about gold itself that makes it a valuable 0:08:30.240 --> 0:08:32.560 thing in the sense of if I have gold, my 0:08:32.640 --> 0:08:35.520 life will be better. Because it's only because everyone else 0:08:35.559 --> 0:08:38.560 has agreed that gold is awesome. I mean, chemically it's 0:08:38.559 --> 0:08:40.720 pretty cool. You can do some really interesting things with it, 0:08:41.040 --> 0:08:45.600 typically if you have the wherewithal But there's a practical scarcity. 0:08:45.679 --> 0:08:49.000 I think people who advocate gold say like that at least, 0:08:49.080 --> 0:08:52.000 like it's actually hard to get certain amounts of it 0:08:52.200 --> 0:08:55.840 right right, whereas printed money is you can just print 0:08:55.880 --> 0:08:58.200 as much as you want, right, which can cause some 0:08:58.280 --> 0:09:02.200 problems right when you relations Isn't that why I read that? 0:09:02.360 --> 0:09:05.120 So the first paper money showed up in in China, right, 0:09:05.160 --> 0:09:08.560 I think in seventh century in the Tang dynasty. Um, 0:09:09.600 --> 0:09:12.560 And if what I've read is correct, like it got 0:09:12.679 --> 0:09:15.920 very popular, but then it went out of style because 0:09:15.960 --> 0:09:19.640 the paper money led to massive inflation. Right. Yeah. If 0:09:19.679 --> 0:09:22.080 if your answer to there's not enough money is to 0:09:22.120 --> 0:09:25.800 print more money, there's a problem because money represents wealth, 0:09:25.840 --> 0:09:28.520 and you don't actually create more wealth. When you create 0:09:29.240 --> 0:09:32.560 more currency, you devalue the currency that you have. You 0:09:32.600 --> 0:09:35.680 can't create wealth in that way. Right. The way that 0:09:35.880 --> 0:09:39.200 the way that banks create wealth is through loans. They 0:09:39.679 --> 0:09:42.040 loan out money and then they charge interest, and in 0:09:42.080 --> 0:09:46.600 that way wealth is created. But without that you're not 0:09:46.640 --> 0:09:48.679 creating wealth. You have an x, you have a certain 0:09:48.679 --> 0:09:50.559 amount of wealth that this is representing, and then you 0:09:50.640 --> 0:09:52.880 just print out the currency and that devalues the currency. 0:09:53.160 --> 0:09:55.400 You're you're you're not creating more things that are actually 0:09:55.480 --> 0:10:01.120 valuable like food and electricity and etcetera. Right, So, right now, 0:10:01.400 --> 0:10:06.080 I've got some US federal bank notes in my pocket. 0:10:06.120 --> 0:10:08.719 All right? Um, actually I don't I have none at all. 0:10:08.800 --> 0:10:11.640 But let's say for the one summer the purpose of argument, 0:10:12.080 --> 0:10:15.480 why would you just offer me money? I'm a little 0:10:15.480 --> 0:10:20.880 creeped out. Now there going to be somewhere in this 0:10:20.960 --> 0:10:24.120 building there's some bank notes, right, It's not just credit 0:10:24.120 --> 0:10:31.000 cards everywhere. Um, so, uh, why these things? And is 0:10:31.040 --> 0:10:33.319 it a is it a good idea to keep these around? 0:10:33.559 --> 0:10:37.280 Or is this good currency? Well, it's definitely convenient. So 0:10:37.400 --> 0:10:40.960 convenience is a big issue, right, you know, and we've 0:10:41.000 --> 0:10:45.199 even seen people resist things that would be more convenient 0:10:45.280 --> 0:10:47.240 for one side of the equation than the other. Like 0:10:47.280 --> 0:10:50.679 in the United States, we have dollar coins, but there's 0:10:51.040 --> 0:10:54.120 there's a big resistance to move to the dollar coin. Uh. 0:10:54.160 --> 0:10:56.720 It turns out that if your government does not give 0:10:56.800 --> 0:11:00.400 you the does not does not remove the option to 0:11:00.559 --> 0:11:02.640 stick with the old system. People will just stay on 0:11:02.679 --> 0:11:06.440 the old system. You pretty much have to stop making 0:11:06.480 --> 0:11:09.200 and circulating dollar bells if you want people to just 0:11:09.320 --> 0:11:12.600 rely on the dollar coins. Seems aren't there like huge 0:11:12.840 --> 0:11:16.120 basements full of dollar coins with armed guards right now? 0:11:16.520 --> 0:11:19.880 They are just sitting there because nobody wants them. Why 0:11:19.920 --> 0:11:22.480 would you need an armed guard if no one wants it? Well, 0:11:25.120 --> 0:11:28.600 clearly somebody would want items a pretty big waste of resources, Like, 0:11:28.720 --> 0:11:32.000 here's the stuff nobody wants. Guard it with your life. Well, 0:11:32.040 --> 0:11:34.959 there are different there are different ways of saying how 0:11:35.000 --> 0:11:38.560 it's wanted, though, right, because clearly people would want dollar 0:11:38.600 --> 0:11:41.920 coins if they could get them easily. Um, and if 0:11:42.000 --> 0:11:43.840 if they had no other choice that you can. You 0:11:43.840 --> 0:11:46.160 can still always take them to a bank and get 0:11:46.160 --> 0:11:48.200 them redeemed for the paper cash that you do want. 0:11:49.160 --> 0:11:51.760 Doesn't want seems to mean people don't want to carry 0:11:51.760 --> 0:11:54.480 them around in their pockets. They don't go. Coins are heavy, 0:11:54.520 --> 0:11:57.360 they're they're cumbersome, they make little jingling noises when you walk. 0:11:57.400 --> 0:11:59.719 It's you know, dude, I like to jingle jangle when 0:11:59.720 --> 0:12:03.559 I look. That's why I wear spurs and carry pocketfuls 0:12:03.559 --> 0:12:07.520 of coins. It's just more of the more science facts 0:12:07.520 --> 0:12:10.440 that we are dropping on you guys today. Uh. Well, 0:12:10.720 --> 0:12:14.040 to answer your question about you know, the you know, 0:12:14.080 --> 0:12:17.400 why would it be why why should we not want 0:12:17.480 --> 0:12:22.240 cash or physical money? Uh? So it's convenient because we 0:12:22.360 --> 0:12:26.400 can easily hand this stuff over to someone else. Uh, 0:12:26.600 --> 0:12:28.480 there are all There are also some tax reasons I 0:12:28.480 --> 0:12:32.439 can get into. But um, you know, the downsides are 0:12:32.480 --> 0:12:35.320 things like, well, currency is something it's since it's physical, 0:12:35.520 --> 0:12:38.880 it can actually be damaged and even destroyed or stolen 0:12:39.520 --> 0:12:42.360 or stolen. Most people don't know this, but I think 0:12:42.400 --> 0:12:46.600 the federal uh you know, the mint, the U S Mint, 0:12:46.679 --> 0:12:49.880 they spend a lot more money um or actually I 0:12:49.920 --> 0:12:52.040 don't know if it's the mint, whatever produces dollars and 0:12:52.120 --> 0:12:56.840 coins they spend. They spend more money producing paper money 0:12:57.000 --> 0:13:00.920 than than coins. And that seems counterintuit because like coins, 0:13:00.920 --> 0:13:02.840 so they're made of metal. You'd think that that's got 0:13:02.840 --> 0:13:06.880 to be more expensive than paper. But the coins stick 0:13:06.960 --> 0:13:09.559 around much longer, I think, so they don't need all 0:13:09.600 --> 0:13:12.160 that fancy like digital ink and water marks and crazy 0:13:12.200 --> 0:13:14.160 little electronic strips and all that sort of stuff that 0:13:14.200 --> 0:13:16.679 goes into the paper. Yeah exactly, Well, it's it's a 0:13:16.760 --> 0:13:19.200 lot harder to counterfeit a coin than it is to 0:13:19.240 --> 0:13:22.400 counterfeit paper money. So there are a lot of reasons 0:13:22.400 --> 0:13:25.679 why it's easier to make them. The paper money is 0:13:25.679 --> 0:13:28.800 also just it's flimsier. It just dies sooner. Yeah. Sure, 0:13:28.920 --> 0:13:31.559 it's like it's your pet sea monkey instead of your 0:13:31.600 --> 0:13:34.240 pet dog. You know. It just yeah, it only lasts 0:13:34.240 --> 0:13:35.920 a short while and then and then it needs to 0:13:35.920 --> 0:13:38.080 be replaced. And in fact, that happens all the time. 0:13:38.120 --> 0:13:40.040 And and that's one of those things is that if 0:13:40.080 --> 0:13:43.160 it's going to cost you money to produce and circulate 0:13:43.720 --> 0:13:46.640 the currency, like if if it's going to cost wealth 0:13:46.679 --> 0:13:49.640 to do that, then that's not an incredibly efficient system. 0:13:49.640 --> 0:13:52.200 And in fact, you know, and your research you found 0:13:52.240 --> 0:13:55.679 that it cost uh was in it cost two cents 0:13:55.720 --> 0:13:58.360 to ment a penny and more than ten cents to 0:13:58.360 --> 0:14:00.760 mint a nickel, which means you're losing money making the 0:14:00.840 --> 0:14:04.920 currency and uh and so you know that that's a 0:14:04.960 --> 0:14:08.040 big drawback. And then counterfeiting, of course huge drawback. If 0:14:08.080 --> 0:14:10.480 if the money you make the currency you make, rather 0:14:11.360 --> 0:14:15.360 if it's replicable, then people can make counterfeit versions of it, 0:14:15.440 --> 0:14:18.920 and then that either ends up devaluing the currency overall, 0:14:19.080 --> 0:14:23.320 or someone's just defrauding everybody until someone gets caught. If 0:14:23.360 --> 0:14:26.280 you think about just all the hoops we jump through 0:14:26.360 --> 0:14:29.480 just to make banknotes hard to copy. I mean, like 0:14:29.680 --> 0:14:33.400 we're putting holograms on things, or maybe not us, but 0:14:33.440 --> 0:14:36.960 you know some some countries, well not the United States, 0:14:36.960 --> 0:14:40.080 some countries they put holograms on their money, holograms. It's 0:14:40.120 --> 0:14:43.040 I mean, this is not a Star Wars action figure 0:14:43.040 --> 0:14:49.680 packaging materials, exactly, why is there a hologram on this? 0:14:49.800 --> 0:14:53.480 And it's because they're always desperately searching for a way 0:14:53.520 --> 0:14:56.520 to make these things harder to fake, right, Yeah, you 0:14:56.600 --> 0:14:58.600 have to stay ahead of the counterfeiters who turn out 0:14:58.600 --> 0:15:01.760 to be pretty you know, crafty people. So things like 0:15:01.800 --> 0:15:05.000 water marks and the micro printing stuff that's really difficult 0:15:05.040 --> 0:15:07.920 to replicate on at least a you know, a small scale. 0:15:07.920 --> 0:15:10.640 You usually have to have a pretty you know, sophisticated 0:15:10.680 --> 0:15:14.600 operation to be able to replicate currency in a way 0:15:14.600 --> 0:15:17.200 that will actually fool people, right, and also to make 0:15:17.240 --> 0:15:19.760 it affordable. I mean, if you're spending way more money 0:15:19.760 --> 0:15:21.640 than you would just you know, going out and buying 0:15:21.640 --> 0:15:24.480 a dollar from, right, it's spending more money than you 0:15:24.520 --> 0:15:26.760 would like, or you're spending more time and effort than 0:15:26.800 --> 0:15:28.520 you would if you just went out and got a job. 0:15:29.760 --> 0:15:31.920 Then you'd be like, why am I? Why am I 0:15:32.040 --> 0:15:34.320 doing this thing? Where it's like it's like the Supervillains, 0:15:34.320 --> 0:15:37.120 where like, you know, your plan is so inefficient. If 0:15:37.160 --> 0:15:39.680 you can make more money investing in coffee beans and 0:15:39.800 --> 0:15:42.760 just get like a franchise of a fast food restaurant 0:15:42.840 --> 0:15:45.040 or something you're gonna be, that would have been I 0:15:45.080 --> 0:15:46.720 would have been a really boring episode of Pinky in 0:15:46.760 --> 0:15:49.920 the Brain. Yeah, well I'd still watch it better than 0:15:49.960 --> 0:15:52.800 most stuff anyway anyway. So yeah, I mean, so we've 0:15:52.840 --> 0:15:55.360 got the counterfeiting problem, We've got the fact that it 0:15:55.480 --> 0:15:59.120 costs money to create and circulate. How about this, it's uh, 0:15:59.160 --> 0:16:03.200 if you'll ever seen an armored car, Yeah, those are big, 0:16:04.000 --> 0:16:06.320 they're intimidating on the road. Yeah, you've got to think 0:16:06.360 --> 0:16:09.360 that these things are not cheap to operate, and yeah, 0:16:09.360 --> 0:16:11.160 they're not cheap to build, they're not cheap to operate, 0:16:11.160 --> 0:16:14.880 they're not cheap to maintain. Right, So somebody figures that 0:16:14.960 --> 0:16:17.880 they are going to lose less money paying these armored 0:16:17.920 --> 0:16:20.880 car operators than they would if they didn't go through 0:16:20.920 --> 0:16:25.400 all these precautions. So what what would we say physical 0:16:25.440 --> 0:16:28.920 currency is easy to steal? Yeah, yeah, it's easy to steal, 0:16:28.960 --> 0:16:31.680 and it costs money to move it around like in 0:16:31.760 --> 0:16:34.640 bulk anyway. You know, if you're talking about a few dollars, 0:16:34.640 --> 0:16:36.560 then obviously it's not that's not an issue. But you're 0:16:36.560 --> 0:16:39.280 talking about lots and lots of dollars, like like the 0:16:39.320 --> 0:16:42.600 amount of dollars that a business gets within a week 0:16:42.720 --> 0:16:45.320 or two weeks or whatever whenever the armored car comes around. 0:16:45.840 --> 0:16:48.520 Not that I'm paying attention, Uh, don't put me on 0:16:48.560 --> 0:16:50.760 a list. Wouldn't it be great at that scene and 0:16:50.840 --> 0:16:53.400 heat where they bust open the armored car and it 0:16:53.560 --> 0:16:58.120 just all these cowry shells pulled. Yeah right, that would money? 0:16:58.160 --> 0:17:00.480 That would be That would be pretty cool. So yeah, 0:17:00.520 --> 0:17:05.160 there there are reasons why why cash is is problematic. Right, 0:17:05.240 --> 0:17:09.399 it's not it's not an ideal means of of of 0:17:09.440 --> 0:17:12.359 exchange in the sense that it's actually costing you money 0:17:12.520 --> 0:17:15.160 to keep it going, to keep the system going. So 0:17:15.640 --> 0:17:18.480 that kind of leads us into the discussion about the 0:17:18.560 --> 0:17:22.080 cashless transactions, and uh, there are a lot of cashless 0:17:22.080 --> 0:17:24.119 transactions that take place all the time. In fact, There 0:17:24.119 --> 0:17:27.800 are a lot of huge cashless transactions that take place 0:17:27.840 --> 0:17:31.959 at the corporate level, where you're talking about wiring money. Essentially, 0:17:31.960 --> 0:17:35.600 you're wiring the promise of money between companies. But on 0:17:35.640 --> 0:17:38.480 the smaller level, like on the personal level, we're getting 0:17:38.480 --> 0:17:41.320 into a lot of cash less payments, whether that's with 0:17:41.560 --> 0:17:44.760 a credit card or debit card, or with something like 0:17:44.960 --> 0:17:47.119 an e wallet that you might have as part of 0:17:47.160 --> 0:17:49.800 your smartphone if it hasn't enough c chip, which stands 0:17:49.840 --> 0:17:53.560 for near field communication. I think even a check technically 0:17:53.720 --> 0:17:56.359 counts as cash there you go to. Yeah, not as 0:17:56.400 --> 0:17:58.960 convenient because you're still carrying around a whole bunch of 0:17:58.960 --> 0:18:02.160 home but but near field communications stuff, I mean, that's 0:18:02.240 --> 0:18:05.400 kind of interesting. It's the this little radio transmitter that's 0:18:05.440 --> 0:18:09.200 inside um, your your smartphone if you have a smartphone 0:18:09.240 --> 0:18:12.320 with NFC enabled device in it. Uh, and it only 0:18:12.359 --> 0:18:16.400 works at very very short ranges, so it's not like 0:18:16.480 --> 0:18:21.239 you are broadcasting out your payment plan or whatever. As 0:18:21.280 --> 0:18:24.400 soon as you walk through the door to buy, you know, cheetos. 0:18:25.000 --> 0:18:27.840 But you wouldn't accidentally pay for something, right you were 0:18:28.000 --> 0:18:30.280 just by walking through a store and be like, exactly, 0:18:30.640 --> 0:18:33.440 you know, why did I buy five copies of Time magazine. 0:18:33.480 --> 0:18:35.199 You're right, Yeah, you wouldn't have to worry about that. 0:18:35.560 --> 0:18:37.040 What would happen is that, you know, you would get 0:18:37.119 --> 0:18:39.160 rung up at the cash register, just like you would 0:18:39.240 --> 0:18:41.800 if you were using any other form of payment, and 0:18:41.840 --> 0:18:44.000 there would be a little pad there for you to 0:18:44.119 --> 0:18:46.560 tap a phone or or whatever. You could have a 0:18:46.560 --> 0:18:49.080 tablet that has these two I have both. I've got 0:18:49.119 --> 0:18:51.800 a tablet and a phone that both have NFC in them. 0:18:51.920 --> 0:18:56.439 And uh, normally there's some form of verification that you 0:18:56.480 --> 0:18:58.840 have to enter before you can actually make a payment. 0:18:58.880 --> 0:19:00.919 So it's usually a pin and that you have to 0:19:01.040 --> 0:19:03.919 enter as well, because you know, they people worry like 0:19:04.000 --> 0:19:07.040 what if someone just came up to you and uh, 0:19:07.040 --> 0:19:09.840 what if your phone accidentally tapped against something? Would you 0:19:09.880 --> 0:19:13.600 accidentally pay for something? No, you have to actually actively 0:19:14.080 --> 0:19:16.320 say I'm going to pay for this with this method 0:19:16.440 --> 0:19:19.080 some kind of digital signature, right yeah. Yeah. So once 0:19:19.119 --> 0:19:22.080 you put that in, then the transaction is complete. Your 0:19:22.200 --> 0:19:24.840 the money is deducted from your account. And the nice 0:19:24.880 --> 0:19:27.199 thing about a lot of these programs, like the Google 0:19:27.200 --> 0:19:29.639 Wallet programs a great example, just because it's one of 0:19:29.640 --> 0:19:33.080 those that has a lot of the features built into it. 0:19:33.080 --> 0:19:36.080 It has things like coupons built into it. It has 0:19:36.119 --> 0:19:38.960 a loyalty program stuff build into it, so that if 0:19:38.960 --> 0:19:41.960 the vendor uses Google Wallet, if they accept this form 0:19:42.000 --> 0:19:46.159 of payment, then you can automatically not just pay for 0:19:46.240 --> 0:19:49.159 whatever it is you're getting, you can get those extra 0:19:49.320 --> 0:19:52.240 rewards that way too. Like you get the coupon discount 0:19:52.280 --> 0:19:56.400 automatically applied, you can get the loyalty visit automatically applied. 0:19:56.800 --> 0:19:59.320 And uh, it means that you don't have to manage 0:19:59.359 --> 0:20:02.239 that stuff on your own as much. Um there are 0:20:02.240 --> 0:20:04.000 a lot there are people who worry about it. There's 0:20:04.040 --> 0:20:05.720 worries that, you know, you might be able to hack 0:20:05.760 --> 0:20:08.200 a system. It's a little challenging because again it's near 0:20:08.240 --> 0:20:11.679 field communication, but the security is always an issue. And 0:20:11.720 --> 0:20:14.560 then there's just a fact that not that many vendors 0:20:14.680 --> 0:20:17.880 offer this right now, especially in the United States, and uh, 0:20:18.200 --> 0:20:22.680 some vendors are um reluctant to enter into it one 0:20:22.840 --> 0:20:27.960 because there's not a standard version of this that's out 0:20:28.000 --> 0:20:31.800 there that everyone's using yet, right, So so the vendors 0:20:31.800 --> 0:20:33.640 then like, well, then which one do I go with? 0:20:33.680 --> 0:20:37.320 If I support one, is it going to support the other? Uh? 0:20:37.359 --> 0:20:40.760 The other versions and if it doesn't, then you know 0:20:40.960 --> 0:20:43.800 what percentage of my of my customers are actually gonna 0:20:43.800 --> 0:20:45.399 be able to use this versus the ones who are like, 0:20:45.440 --> 0:20:47.480 well I would use that, except I have a totally 0:20:47.480 --> 0:20:50.800 different wallet. Sure. Yeah, it's not as clearly pretty and 0:20:50.920 --> 0:20:54.400 desirable as a cowry shell, for example. So yeah, yeah, 0:20:54.440 --> 0:20:56.720 it's it's it's a little more complex. So and and 0:20:56.760 --> 0:20:59.040 also it just costs money to throw to put those 0:20:59.040 --> 0:21:03.000 systems into place, So vendors have to have to believe 0:21:03.560 --> 0:21:07.040 that it's more valuable to offer the service than the 0:21:07.119 --> 0:21:10.320 cost it would it would require them to install it. Right. 0:21:10.359 --> 0:21:12.360 So if they're like, yeah, I could install this, but 0:21:12.760 --> 0:21:14.720 the number of customers I get who would use it 0:21:14.800 --> 0:21:17.560 would would not even justify the cost of installing it, 0:21:17.600 --> 0:21:19.639 then they're not going to do it. One thing to 0:21:19.720 --> 0:21:23.200 consider is, uh, I don't know if there's been any 0:21:23.240 --> 0:21:26.320 research in in this area or not, UM, but surely 0:21:26.359 --> 0:21:30.120 there will be certainly market research UM to find out 0:21:30.680 --> 0:21:36.000 if if the pain of paying thing affects digital payments, right, 0:21:36.040 --> 0:21:39.680 because that seems to me like that could motivate vendors 0:21:39.760 --> 0:21:42.080 to adopt the system of they they if they think 0:21:42.119 --> 0:21:44.880 your buyer doesn't feel the pain of paying by tapping 0:21:44.880 --> 0:21:46.760 the phone in the same way he or she does, 0:21:47.080 --> 0:21:50.120 by removing the money from the wallet right where where 0:21:50.160 --> 0:21:52.400