Why bartering is comming back?
As currency and coins gained their role as the favored medium of exchange, bartering gradually faded into the background. Nevertheless, it has maintained its presence throughout history and is currently experiencing a resurgence, particularly in response to periods of crisis.
Bartering is making a resurgence for several reasons:
Economic Uncertainty: During times of economic instability, such as recessions or financial crises, people may lack confidence in traditional currencies and banking systems. Bartering provides a more direct and tangible way to obtain goods and services without relying on a potentially fragile financial infrastructure.
Trust and Local Networks: Bartering often involves trading within local communities or networks of trust. In uncertain times, people may prefer to engage in transactions with individuals or businesses they know personally or trust, rather than relying on distant and impersonal financial institutions.
Non-monetary Assets: Some individuals may possess valuable assets or skills that are not easily converted into cash. Bartering allows them to leverage these assets for their needs without going through the process of selling them for money first.
Sustainability and Environmental Concerns: Bartering can promote a more sustainable and eco-friendly way of consumption by reducing the need for new purchases and the associated environmental impact. It encourages the reuse and recycling of goods.
Cultural and Social Aspects: Bartering can also have cultural and social significance. It fosters community bonds, encourages social interaction, and can be seen as a way to support local economies and artisans.
The Rise of Digital Technology: modern digital bartering platforms has made bartering more accessible and convenient. Online platforms and apps have emerged to facilitate barter exchanges, making it easier for people to connect and trade without the need for physical meetings.
Resourcefulness and Adaptability: In times of crisis, people often become more resourceful and adaptable. Bartering reflects these qualities as individuals seek creative ways to meet their needs when traditional financial systems may falter.
Popularity of circular economy: Global sustainability objectives, such as the United Nations Sustainable Development Goals (SDGs), underscore the significance of adopting sustainable consumption and production practices. The circular economy is in harmony with these worldwide sustainability aims, positioning it as a key approach for realizing them.
Overall, the resurgence of bartering is a response to both economic and societal factors, as well as a reflection of people’s desire for more localized, sustainable, and community-oriented approaches to trade.