By FERNANDO NOGUEIRA DA COSTA*
Capital in a digital economy can be understood as an extension of accumulated labor, measured, transacted and multiplied through digital accounting systems.
The seven universal laws are philosophical principles derived from Hermeticism, traditionally attributed to the ancient sage Hermes Trismegistus. These laws are not “hermetic,” but rather understood as fundamental principles for approaching reality (“the truth”) at different levels, both on the physical and on the mental and spiritual planes.
I will use these laws here as a symbolic or metaphorical approach to understanding the deeper dynamics and systemic interactions via digitalized currency in contemporary economies. I will interpret these laws as metaphors for the circulation of digitally written currency, an economic and technological phenomenon.
The law of mentalism is: “the whole is mind; the universe is mental.” This law suggests that reality is constructed and influenced by the mind and thought. Everything begins in the mental realm according to one of the two major traditions of Western philosophy: the idealist. The other is the materialist.
According to this “mentalism,” the digital monetary system is created and shaped by human ideas. In this sense, the value of the currency is ultimately a mental construct based on trust and social acceptance.
The law of correspondence is: “As above, so below; as within, so without.” This law reflects the idea that there are patterns and correlations between different levels of reality (microcosm and macrocosm).
This “correspondence” appears in the dynamics of digital capital flows. They reflect larger (macro results) and smaller (micro decisions) economic patterns, such as the relationship between the global and local economies.
The law of vibration is: “nothing is still; everything moves; everything vibrates.” Everything in the universe is in constant movement and vibration, from matter to the subtlest frequencies of thought.
This monetary “vibration” appears because digital financial transactions are in constant movement and transformation. Money never remains static, just like the constant flow of data and information circulating in the digital financial system.
The law of polarity is: “everything is dual; everything has two poles; everything has its opposite.” Everything has two contrasting aspects, and opposites would be essentially the same thing, at different poles.
“Polarity” is common because there are several opposites in the capitalist economic system, which is antagonistic by definition, such as abundance and scarcity, wealth and poverty. Digital currency also facilitates both income and wealth growth and inequality, depending on its use.
The law of rhythm is: “everything flows, in and out; everything has its tides; everything rises and falls.” This law recognizes that the cycles and oscillations of the universe are also reflected in everyday life and natural processes.
What is this “rhythm” like in the financial economy? The monetary system follows economic cycles of growth and recession, if not depression, and the fluctuations in the digital market reflect these movements of expansion and contraction.
The law of cause and effect is: “every cause has its effect; every effect has its cause.” This law expresses the principle that nothing happens by chance, but rather as the result of a chain of causes and effects.
“Cause and effect” in economic and financial activity is the object of research in economic science. Economic and political decisions (causes) directly affect the circulation and value of digital currency (effects). Monetary policies or changes in confidence in the financial system trigger knock-on effects.
The seventh universal law is the law of gender: “Gender is in everything; everything has its masculine and feminine principles.” This refers to the presence of masculine and feminine creative energies in everything in the universe, not just in terms of biology, but as principles of creation and balance.
“Gender” is also metaphorical. The creation of digital currency involves both active (masculine) aspects such as issuance and circulation, and receptive (feminine) aspects such as acceptance and storage, suggesting a balance between creative and structural forces in the financial system that is inseparable from the capitalist economy.
Applying the seven universal laws to the circulation of digitally written money in a cashless economy requires trust in real-time digital ledgers. They play a central role in enabling all economic flows, from the payment of wages to the accumulation of financial wealth through compound interest.
In a system based exclusively on digital currency (either paper or cryptocurrencies), all flows of resources occur virtually. The economy, therefore, depends on a digital accounting system capable of recording, verifying and authenticating transactions in real time, ensuring integrity and trust in the process.
When companies pay salaries, the money is transferred electronically to workers’ checking accounts. This process relies on digital deeds. They document the transaction, ensuring that the deposit was made correctly and allowing the digital currency to be validated and transferable.
When using this money for consumption (purchasing goods and services), again, the transaction is recorded digitally, and the parties involved trust that the value will be transferred securely and accurately, without physical intermediaries. The digital buying and selling process depends on mutual trust in the payment and accounting systems.
When money is not spent and is instead invested in financial assets (such as investments or term and savings deposits), it enters into processes that follow the same rules of reliability and digital bookkeeping. The accumulation of wealth through compound interest, for example, is a process of financial mathematics (term, interest and periodic income up to the future value), recorded digitally, where trust lies in the accurate calculation of income and in the credibility of the financial institution with a digital platform offering such money management service.
Trust in digital records therefore underpins the entire economic cycle, allowing transactions to take place smoothly and securely. Furthermore, this trust must be protected by mechanisms such as encryption, financial audits, state regulation, banking supervision by the Central Bank and public trust in financial institutions.
The idea that capital is accumulated labor has its roots in classical theories of value, such as those of Adam Smith, David Ricardo, and Karl Marx. In the context of the digital economy, this idea continues to make sense, but with some adaptations.
Capital – understood as wealth accumulated in the form of money, real estate, and financial assets – is seen as the result of a process in which labor generates added value. When workers receive digital wages for their productive efforts, these wages represent the reward for the work performed.
Digital money represents a form of value accumulation created by labor. Even in the digital economy, labor, whether physical, intellectual or creative, generates a financial return. This return, if not immediately spent, is accumulated and invested, becoming capital that grows over time through compound interest or investments.
When capital is invested, compound interest acts as a capital multiplier, because it increases the amount of accumulated wealth over time. In this sense, digital money, generated by labor, should be seen as a form of accumulated labor, the value of which expands through the financial mechanisms of the digital economy. Just as rent is the payment for the usufruct of real estate by a lessor, interest compensates for the opportunity cost of the owner not directly benefiting from its use.
In a cashless economy, the distinction between labor and capital does not essentially change, but the way capital is managed and accumulated does. Capital continues to be seen as the materialization of past labor, but now it exists predominantly in digital form. This creates different dynamics.
Digital money circulates more quickly than physical money, accelerating the process of accumulation and investment, but also consumption. Access to capital becomes expanded or restricted, depending on factors such as digital financial inclusion, that is, who has access to digital accounts, investment platforms and other digital financial resources. And, of course, financial education!
Digitalization also brings new risks, such as cyberattacks, digital fraud and the centralization of data. These “phishings”continuous compromises trust in the institutions that manage digital money.
Therefore, capital in a digital economy can be understood as an extension of accumulated labor, measured, transacted, and multiplied through digital accounting systems. Trust in this digital currency system and in transaction and investment platforms is essential for capital to continue to represent the wealth created by labor and, at the same time, become a fluid asset (form of wealth maintenance), available for reinvestment, consumption, or accumulation of financial reserves at any time.
*Fernando Nogueira da Costa He is a full professor at the Institute of Economics at Unicamp. Author, among other books, of Brazil of banks (EDUSP). [https://amzn.to/4dvKtBb].
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