Money, Markets & Conflict.

We work, do business and innovate to earn money because it is whispered that cash brings satisfaction and ease of maintaining one’s lifestyle. If you think about it, there are countless means of earning money depending on individuals' skills, preferences, and experience. And while some are legitimate, others are unlawful, and people choose methods they perceive are better, easier and faster. A bit of a gray area though, illegal today can be legal in future and vice versa.

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The one post in my social media interactions that had a lot of activity- you guessed it- was all about money and how it influences our lives. It was actually just a screenshot of a tweet: Those who live purely on credit in Europe/America are counted among the rich but a village resident in Africa who owns the land, grows his own food and have no need to borrow is counted as poor because he doesn’t “earn $2 a day”. He who sets the criteria controls your perception. By David Ofosu-Dorte. The reach (over 60k) and reactions were a demonstration of just how close the topic is to our hearts.

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In light of the tweet, debt can enable one make a huge leap forward but on the other hand, it can lead to bankruptcy, wiping out all value. This is why financial solutions and inclusion have most times meant availability of capital though debt. However, the solution comes as a profit-seeking endeavour thus the more ignorant the people, the easier it is for them to get into unsustainable debt. You can own your land, work it and grow food but you may want other things that you’d be priced out of. Capitalism is a narrative of wants. Consequently, wealth has a significant impact on individuals' lives as out of it arises social status and classes in society.

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For the past few decades, money has dramatically evolved, with most people adapting to these changes. And let me start by saying that nothing is perfect; the development of money and financial services has impacted many lives both positively and negatively. To begin with, people have greatly embraced money evolution by finding better means of payment and trade that bring fewer inconveniences in business. With the evolution of money, people can indulge in various ways to make money and take care of multiple needs. On the flip side, there has been an increase in inequality in different parts of the world. The number of affluent people has increased, and yet others continue to get poorer. The wealth gap is increasing tremendously day by day.

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Apart from being a means of exchange, money is also a store of value that enables the markets to function effectively. Gold and other alternatives such as investing in the financial markets are also used to store value and are preferred for being inflation-proof. Inflation eats into our savings and fast.

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Beyond inflation, there’s also the issue of taxes.

In the words of J Cole;

Yeah, I pay taxes, so much taxes, shit don’t make sense

Where do my dollars go? You see lately, I aint been convinced

I guess they say my dollars supposed to build roads and schools

But my niggas barely graduate, they ain’t got the tools

Maybe ‘cause the tax dollars that I make sure I send

Get spent hirin’ some teachers that don’t look like them

And the curriculum be tricking them, them dollars I spend

Got us learning of the heroes with the whitest of skin

One thing about the men that’s controlling the pen

That writes history, they always seem to white-out they sins

Maybe we’ll never see a black man in the white house again

I’ll write a check to the IRS, my pockets get slim

Damn, do I even have a say ‘bout where it’s goin’?

Some older nigga told me to start votin’

I said, democracy is too fuckin’ slow

If I’m givin’ y’all this hard-eaned bread, I wanna know

Better yet, let me decide, bitch, it’s 2018

Let me pick the things I’m funding from an app on my screen

Better that than letting wack congressman I’ve never seen

Dictate where my money goes

Straight into the palms of some money-hungry company that make guns

That circulate the country and then

Wind up in my hood, making bloody clothes

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Taxes and what they end up financing: Does one have a say when you have to go through your legislator? Think about it: the same legislators who are so good at swinging from one side to the other with a bit of incentive. Even then, they are the true representation of our society. As we like to say: poverty is the enemy.

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As such, Africa is in a conundrum of sorts. The past and the future are all fighting to be the dominant narratives. Do we go the western way, or do we go back?

In my opinion, we should create our own utopia.

Considering that money is the most believed narrative by human beings (beyond any religion or nationality) a viable challenge to this narrative is exciting to experience, fuelled by cryptocurrencies.

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There is a gap that crypto is filling. Regulations put up walls of protection which eventually turn out to be walls of imprisonment. In this case, crypto is the tunnel underneath. However, one major issue in crypto-land is exchange–crypto to fiat and fiat to crypto. There is no perfect mediator when using crypto.

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For many, when Bitcoin came into the picture in 2008, it was just another Ponzi scheme. However, with time, cryptos are winning minds, hearts, and most importantly, the pockets of many. As Naval Ravikant (one of the earliest backers of the crypto revolution) put it, buying crypto has become more of a vote.

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Cryptocurrency is the most common form of digital money, leveraging on Blockchain technology (where a decentralized system is used to issue and record new units and transactions). Crypto, therefore, does not have regulatory authority, and consequently, anybody in any part of the world can use this form of transaction. However, the digital realm is sort of a Wild West at the moment.

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New environs with a lot of value exchange tend to attract all sorts of characters, with most hoping to get rich quick. But in comparison to what financial institutions charge their customers in pursuit of profits the hacks and stolen crypto value look like a joke.

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Scarcity is also a pillar of crypto. Every time a Government prints money, that's a vote for crypto (Naval). More and more people choose crypto, considering the challenges fiat brings.

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Global inflation- Currently, economies the world over are experiencing the worst inflation in decades. Inflation is not new, but global inflation makes you realize the markets are just too dependent on each other, and there’s a huge problem.

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Strength of a currency over others, especially the reserve currency- The US printing dollars and exporting inflation is an indirect way to ensure the currency's strength worldwide. Post-Covid Governments printed, borrowed and injected a lot of money trying stimulate the resurgence of their economies. China went against the wave and tried to enforce a zero tolerance to Covid at the expense of the world economy and their own.

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Conflict- Russia then invaded Ukraine and even went ahead to demand rubbles as a form of payment for its oil and gas resources exported into Europe. Undoubtedly, the power of money is a critical issue in modern times considering China threatening to invade Taiwan, which to them is inevitable; Turkey threatening to invade Syria (Russia seems preoccupied) at the same time using NATO membership of Finland and Sweden as playing cards; and Sri-Lanka’s total economic collapse. There also US – China, Israel – Pakistan and closer home Rwanda – DR Congo conflicts. All this while it seems that in Kenya we are in a political mood. For us, it’s just critical who you support; other issues will be thought of later on.

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Purchasing power- For context, someone was showing off 90naira on social media wondering what to get for lunch. In Kenya, that’s about Kshs. 25 which can only afford you a smokie pasua (smoked sausage with salad). Likewise, the same value can afford you a different life in another part of the world.?

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You cannot convince me, however, that were not experiencing a recession at the moment. The markets are very bloody, some stocks losing more than a decade worth of value. Cryptos have been hit as well, with some totally knocked out.

Regardless, Blockchain is a great innovation. I have to admit that even I didn't see it growing to where it is now. The growth has been tremendous with various inventions that have changed the economic conditions of many people.

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Around 2018/19, someone sought my advice on cryptocurrencies. My answer then was for them to keep off for a while because cryptos were primarily speculative.

Naturally, people have different ideas and opinions about cryptocurrencies, and mine changed not so long ago. Ethereum and the power of smart contracts enabled Non-Fungible Tokens (NFTs), and everything seemed different. Opensea, Foundation, and other NFT market places are some of the highly diversified markets in the world in terms of people. It definitely makes for a significant solution for photographers and digital artists who have the limelight at the moment. With time, I believe more artists will be onboarded.

Capitalism may be sick, but we don't have a viable alternative. Free and fair markets are not so fair when some have a great advantage. That said, making markets free and fair is impossible.