Banks and payment apps like Zelle often flag and freeze tiny transfers, treating normal gifts as suspicious and disrupting everyday use of money.
The system focuses on policing ordinary users because they’re easy targets, while wealthy actors evade scrutiny through complex methods like shell companies and art deals.
Keeping some control outside the banking system—cash, gold, or decentralized options like bitcoin—helps prevent an algorithm or bank from freezing your finances.
Households in the United States have a large majority of their net worth in non-cash assets like stocks and real estate, with cash and bank deposits making up a small portion.
Non-cash asset values are extrapolated based on a small percentage that are traded for cash, similar to estimating the total length of a football field by measuring a small unit.
The financial system's implied market value of non-cash assets is ultimately based on a small portion of cash-for-asset exchanges, emphasizing the importance of understanding how cash moves.
Cash plays a crucial role in balancing the power dynamics of digital money.
The narrative of a cashless society being a 'progressive upgrade' overlooks essential aspects of financial resilience and inclusion.
Digital payment systems can lead to excessive centralization, loss of autonomy, and potential privacy concerns, highlighting the importance of maintaining a balance between cash and digital options.