Barter Continues to Compete with Money as a Viable Form of Currency in a Modern Age
In today’s economy, barter is considered by many individuals and businesses alike, to be the new cash.
Investopedia states: “Money, in and of itself, is nothing. It can be a shell, a metal coin, or a piece of paper… The value that people place on it has nothing to do with the physical value of the money. Money derives its value by being a medium of exchange, a unit of measurement and a storehouse for wealth. Money allows people to trade goods and services indirectly,.. and provides a way to save for larger purchases in the future.”
Unlike today, money was not always the normal, everyday currency of America. A year before enactment of the U.S. Constitution, an angry mob in New Hampshire marched on the state assembly demanding that the state print paper money to enable the state’s debtors to pay off their creditors and be rid of them. The creditors then fled the state to avoid payment. If caught, they were forced at the point of a gun to acknowledge payment in full.
Long before money, there was barter. “Bartering is a direct trade of goods and services – Here’s a stone ax in exchange for help killing this mammoth – but such arrangements take time. The premise was to find someone who thinks an axe is a fair trade for having to face the 12-foot tusks on a beast that doesn’t take kindly to being hunted. If that didn’t work, an individual would have to alter the deal until someone agreed to the terms. One of the great achievements of money was increasing the speed at which business, whether mammoth slaying or monument building, could be done.”
Except today, technology has changed everything. The crude trading methods of yesteryear are no longer applicable. The Internet makes barter possible on a global scale, with virtually as much fluidity as paper money.
Ana Hawk, outspoken founder of Instant Barter, which inter-connects hundreds of barter companies worldwide, tells it the way it is: “Most Americans have been brainwashed into thinking that money is all there is. The truth is that barter is just as valid a currency as paper money. That’s because currency is anything people agree has value and voluntarily trade. Just ask the IRS. Barter is recognized and taxed no different than income and wages.”
In the 1960’s, Americans started joining barter groups, which would extend barter credit to their participants for everything from goods and services, to saddles and horses. The provider’s account would be credited, and the buyer’s account would be debited. Back then, of course, there was no internet. Today, the same bartering system is flourishing, except it’s doing so online through more than a thousand companies that offer tens of thousands of goods and services worldwide.
Unknown to many, international trade relies on barter every day. The Encyclopedia of Business, 2nd Edition instructs: “Countertrading refers to a category of international trade in which an exporter agrees to accept payment in the form of goods or services. Countertrading ranges from simple barter agreements to complex offset deals that involve the exporter agreeing to compensatory practices with respect to the buyer. It commonly takes place between private companies in developed nations and the governments of developing countries… It has become popular as a means of financing international trade to reduce risks or overcome problems associated with various national currencies.”
“Everything people need, want or desire for life can be bartered,” says Ms. Hawk confidently. In an effort to expound further, a Barter 303 Cash Conversion class is being offered online two days before Thanksgiving and will be, centered on trading for the holidays. Other rules on bartering are explained on the official IRS website.
In today’s new economic world, with peer-to-peer lending, cash cards, and everything else that facilitates exchange, learning about the intricacies of the ways in which barter works like cash, may be a sensible thing to do.
Ana Hawk is the founder/CEO of Instant Barter, LLC. Instant Barter is the fastest growing barter company in the world, dedicated to educating people on how to use what they already have to get what they need right now, and to growing their lives and businesses in a challenging economy, thereby enabling them to proposer and live an abundant lifestyle. The IRS views trade and barter dollars just like it views cash, checks or credit card transactions.
For more information about us, please visit http://instantbarter.com/
Name: Ana Hawk
Organization: Instant Barter