• 30. 6. 2025 • H. T. •
The link between Money and a physical unit is crucial for human understanding, especially when dealing with exponential growth and very large numbers. Here’s why:
🔢 Cognitive Anchoring → Humans struggle to intuitively grasp huge numbers and rapid increases. Physical units, like grams of gold or other tangible assets, provide a reference point that makes abstract financial concepts more relatable.
📈 Perception of Value → When money is linked to something concrete, people can conceptualize its worth better. For example, saying “this currency is backed by X amount of units is easier to grasp than “this currency is valuable because we trust it.”
🚀 Managing Inflation & Growth → Exponential increases in currency supply without a tangible anchor can make it hard for people to assess real value, leading to misunderstandings about inflation, purchasing power, and economic stability.
As finance moves further into digital and decentralized systems, the challenge will be finding ways to make abstract patterns intuitive. What would be a great Physical Unit to represent Money? Do you need Time to think about it?
