Cover photo

Human Coordination

And Money

Tribe of Tribes

Evolution is a very interesting theory, whether you adhere to it or not, its a beautiful tale. The Survival of the Fittest is a unique concept that influences the frequencies of displayed traits and behaviors.

The early humans were hunter gatherers. This is undisputed whether you believe in evolution or not. Humans used to run around, hunt and gather their food. They lived very nomadic lives and shared among one another their kills.

Humans were hostile to other tribes. This was a necessary thing because resources were limited. The competition for resources is important in the analysis of human behavior. Throughout human history resources have experienced scarcity, abundance as well as varying predictability.

Within The Tribe

The allocation of resources, in accordance with basic economics, is accomplished with capital or power. In a free market capital allocation is done by the individuals based on the most return on investment, but power structures can direct capital on threat of violence. Tribes likely preferred the latter to the former, especially before the invention of money.

Why would you subjugate yourself to the chief of your tribe, regardless of their draconian behavior? How might you feed yourself without them? Humans are born brittle and frail unlike many mammals who are born and walking in days filled with instinct to survive even on their own. Everything you might know, you know from your tribe. Every meal you've had, you've had from your tribe. The dangers of traveling are seen every day as lions and other large predators wait for you to be alone.

The world, and its uncertainty, presented itself everyday. You likely saw someone in your kin challenge the chief or wander away from the collective. Both ended in blood. The fear of uncertainty was enough to prevent dissent. Challenging the chief was out of question because there was no way to eat without his or her favor. Wandering away was not wise because of the threats lurking about.

What was the currency within the tribe? Social capital and status is what resulted in success operating in this system.

The Others

It is very well known that the Homo Sapiens participated in the extinction of the Homo Neanderthalensis. It is not known how the Sapiens chose their fate, but it is well theorized. The Sapiens was very aggressive and effective in their desire to acquire resources. In this fight, located in modern day Europe, the Neanderthals were competitors for the exact same resources and for this reason they were likely eliminated or assimilated into the Sapiens society.

I tell this story because the very basis of humanity is not a collective imagination that we know today. Today, we attempt to set our ideals for the benefit of all humankind, although I think it is obvious that we continue to compete for resources at the cost of blood.

Humans would see an opposing tribe and immediately think of defense. When Rome approached Gaul, the tribes which previously hated one another, suddenly became allies to defeat the Romans. I believe this is also true of the Germanic Tribes. The German Identities were unified, for the first time, because of a common threat. How?

"I am more familiar with you all than them, so you are now my ally."

There was more certainty about the opposing Germans than of the rapacious Romans.

The uncertainty of the unfamiliar has guided humanity for a long time. The debit / credit card was initially shunned by those who couldn't imagine no longer using cash. The internet was shrugged off as a passing fad. Cryptocurrency is shamed for its goal of non-state backed or controlled currency, the norm of the last few millennia.

This uncertainty fuels racisms and divisions throughout the world. Humans are quick to see different (skin, hair, bone structure), hear different (language and voices) and feel different about culture and customs. This is a natural defense mechanism for preserving the heuristics upon which we base our lives. Our world views can be shattered at any moment by an opposing culture.

One question we attempt to dodge is, "Am I wrong?"

Death of the Tribes

The tribe was necessary when resources were a certain scarcity. The turn to agriculture and domesticated animals led to the downfall of tribes. Humans expected a certain amount of return from their toiling in the fields which was somewhat greater than hunting and gathering. After much theory, I believe that settling down only satisfied man's unending journey for certainty.

As the labor of the chief and navigator faded, man turned to the skies and the soil for their certainty and in this process created the God King. The God King was able to ask, on behalf of his subjects, to bring the weather needed for the crops to bear fruit. This individual also asked them to bless the soldiers. When they did he was praised for his work. When they didn't she likely blamed the citizens for their misfortunes.

In this process, money was created. Why? Because it is impossible to constantly keep track of the ever changing exchange ratio of goat milk and barley. This removed something in society.

Prior to God King societies and money, humans were incentivized to act for the collective. As society achieved an increased certainty of resources there was less incentive to act for the collective.

Was there incentive to act against the collective? This was found later as bureaucrats and politicians turned on their tribes for money or self-gain. Caesar's assassination, Ephialtes turned to the Persians, and Slaves revealed Spartacus. Each of these were an attempt to appeal to a God King to improve the self over the collective.

Advanced Human Coordination

The coordination of humanity has also revolved around uncertainty. Nothing is certain. With money and interest, humans attempt to calculate the future into a present value. This is how humans coordinate today with tomorrow.

Sadly, liberal democracies that have led the world into a new age of prosperity now look to threaten that prosperity as they betray their tribes for monies. Boeing is permitted to keep its planes in the air as bureaucrats are paid to let them fly and stockholders - from airlines and the plane maker - plea to let the money continue rolling in. Food is almost poisonous.

Cryptocurrency is unique because it offers a new form of human coordination. The first thing that is noticeable is the open and pseudonymous blockchain. It would be much more difficult for our leaders to insider trade if every trade was openly set on the blockchain.

The mechanism of Proof of Work & Proof of Stake continue to provide us with a very unique way to transmit value. A liar, or dishonest actor, threatens their own money. Who would like that? A financial system where the only certainty is that your capital is directly associated with your social capital.

The Self

Humans are born naturally selfish. And who can blame us? No other mammal is born with a care for the entirety of its species. The tribal behavior of humans is very interesting, and it is persistent. As humans have left the fields for desks and desktops, our Human Operating Systems have not changed much.

Selfishness is the tool of an economic system. Communism attempts to quell selfishness by telling us we are all the same. Socialism attacks it by removing things from those who have to redirect it to those who have not. Capitalism attempts to leverage human selfishness by incentivizing maximum productivity and efficiency.

Each are destined to fail without a money system that attempts to incentivize collective beneficence with wise capital allocation.

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#philosophy#behavior#history#economics