Liquid Shoes

1

Submitted by silverpaul on July 9, 2025, 8:55 a.m. to Economics

You are a shoemaker, and you desire turkey lunch meat. You trade a pair of shoes to a blacksmith for a hammer. You trade the hammer to a sportsman for a tennis racket. You trade the tennis racket to a student for a book. Finally, you trade the book to a butcher for the turkey lunch meat. Delicious but exhausting. This is why money becomes a thing - namely, trade complexity in barter economies interferes with time preference. You want your turkey now. You need liquid shoes.

Money is not the best solution to trade complexity. Money creates friction. Due to its fungibility, durability, and near universal demand, everyone tends to want more money. People do not steal shoes or turkey lunch meat as readily as they steal money. Your turkey sandwich is probably safe on the table if you need to take a bathroom break. Try mailing an envelope full of turkey lunch meat to the IRS and measure their response. The government does not want your turkey lunch meat. They want money.

The features of money make it liquid. Mr. shoemaker, what if your shoes were just as liquid as money? What if you could just as easily trade your shoes instead of money for your turkey lunch meat? An interesting thing would occur. Gresham's Law would come into effect and result in you preferentially using shoes in your commerce, and you would save your money. How does one make shoes liquid?

Algorithmic Bartering will revolutionize the World Economy in the coming years. The trade complexity outlined in the first paragraph will become a non-issue. The complexity will occur in a black box. As a trusted producer of shoes, you will be able to trade a pair shoes for your cherished turkey lunch meat with the click of a button while the tennis rackets, hammers, and what-nots exchange hands seamlessly behind the scenes. Money will become an inconvenience. Your shoes will be liquid.

In a recent conversation with xAI's @Grok, @Grok was able to easily generate a foundational algorithm for such a digital bartering platform. Furthermore, since Iran has been subjected to so many sanctions in recent years, many of their people have already turned to barter to ameliorate their financial difficulties. Thus, the algorithm has been brought to the attention of Iran (link below). God willing, Persian Rugs will soon be liquid.

Read more

Comments