The on-line world is filled with terms and definitions, models and ideas about the creation of a new currency. Could “currency” be the same as it always has been just transformed into a different medium with different influences?
Social currency is information shared which encourages further social encounters. Money is a currency that pays for an exchange of value between the buyer and supplier. When the buyer is satisfied with their value the natural human reaction is to share the value received with others. Revenue, money, is produced when the exchange for goods and services is propagated by social currency. On the other hand social currency produces a value exchange of information about people and things without an exchange of money. So if “currency” represents value exchanged then social currency is and has always been the input that influences the output to an exchange of money.
Currency is Currency
In economics, the term currency can refer either to a particular currency, for example the US dollar, or to the coins and banknotes of a particular currency, which comprise the physical aspects of a nation’s money supply. Deposit money and currency are money in the sense that both are acceptable as a means of exchange, but money need not necessarily be currency.
Currency is a medium of exchange and as such as long as a buyer and seller agree on the value of something then the exchange represents a currency, call it social, goodwill or any damn thing you want to…it is an exchange of value.
Conversations represent an exchange of value reflected in the information and knowledge shared. Information and knowledge are in the form of productivity people and business gain from it. The reasons for organizing social currency are becoming more obvious everyday – as institutional and corporate currencies leave gaps in our communities, people will need to fill these voids with social currencies. Filling the caps represents improved productivity. Productivity in of itself is a currency.
Social Systems Influence the Flow of Currency
Social systems sciences is a loose term for engineered environments which, if successful, attract people to participate. The advent of computers and the internet has enabled new types of social systems to take form.
Organizations, formal and informal, are “social systems” however the advent of emerging social technologies has changed the dynamics. Knowledge comes from an exchange of communications that meet a “social need”.
If markets are conversations then capital is created by the free flowing of productive conversations. Social media represents the “system” of conversations. We create our own currency which we trade freely and produce more currency from the knowledge exchanged, used and applied to producing more value for others.
Social currency favors intangible things–ideas, information, and relationships and turns them into tangible. All of these are intensely interlinked. These three attributes produce a new type of marketplace and a currency, one that is rooted in an exchange of value rooted in relational attributes that create trust, respect and appreciation.
Communications is what social technology are all about — it drives all currency.
Communication is the economy. Communications are the foundation of all economic systems. All currency are built on social systems.