What money has to do with happiness.

Happiness is a multi-layered term that describes an emotional state characterized by joy, contentment and positive feelings. Happiness researchers distinguish between long-term happiness, which is based on a general attitude towards life, and daily emotional well-being, which encompasses short-term feelings of happiness in everyday life.

Brain research also contributes to the definition of happiness by distinguishing between genetically determined happiness and short-term feelings of happiness. These short-term feelings of happiness are triggered by a complex cocktail of hormones in the brain, which is influenced by various circumstances and experiences.

In summary, happiness can be described as an emotional state that encompasses both long-term satisfaction and short-term feelings of happiness and is influenced by individual, genetic, social and environmental factors.

Happiness is influenced by a variety of factors, as the Swiss economist and happiness researcher Bruno Frey has discovered. These include positive relationships, health, living conditions in terms of social and political conditions, freedom and self-realization. And yes, money also plays a role. Material prosperity promises us financial security, a fundamental human need.

Interestingly, research shows that money makes us particularly happy when we share it. By buying or donating to others, for example, we can not only increase our own happiness, but also promote the happiness of others. This underlines the importance of generosity and social responsibility for our personal sense of happiness.

The idea that more money automatically means more happiness is increasingly being questioned by scientists. For a long time, it was assumed that money increases happiness up to a certain amount, but then levels off.

An American study has now provided new findings that indicate that both life satisfaction and daily emotional well-being can continue to increase with rising income, at least up to a certain upper limit. According to the study by S Money, this upper limit in Switzerland is around 105,000 Swiss francs.

The reason given is that wealthy people feel they have more control over their lives. This supports the idea that financial security and autonomy are important aspects of personal happiness.

Money, and the control and security it brings, undoubtedly plays a role in our sense of happiness. But there are other factors to consider. According to the World Happiness Report 2023, which lists the happiest countries in the world, Scandinavia, the Netherlands and Switzerland occupy the top spots. These countries are characterized not only by material prosperity, but also by a strong democratic tradition, a high level of civic participation, more equality and less social inequality.

The renowned scientist Bruno Frey concludes from this that people are happier in democracies with more co-determination and freedom, as well as with decentralized politics in which local communities can act in a self-determined manner. This underlines the importance of co-determination, equal rights and local autonomy for personal happiness.

Could this mean that a democratic monetary system makes us happier? We don't know. But let's take a look at what might support this:

● Equality and justice. In a democratic system like cryptocurrencies, we have the same opportunities for access worldwide. We can carry out transactions in real time and thus better fulfill our basic needs.

● Decentralized and self-determined. With cryptocurrencies, we have complete control over our own assets. We are not dependent on central institutions with their rules. This can give us a sense of freedom and self-determination.

● Co-determination and empowerment. Within the crypto community, users have the opportunity to participate in decisions on the use and distribution of money and thus help shape the system.

● Stability. Cryptocurrencies are not subject to exchange rates and interest rates. They could also offer people in economically unstable countries more stability and security.

● Transparency and trust. Cryptocurrencies cannot be changed like traditional currencies. Users know more about the companies they do business with. And fraudulent or corrupt companies can be held accountable.

So will cryptocurrencies be able to influence global happiness? That has not been researched. But democratic monetary systems can bring benefits for each and every one of us. And also for society as a whole, for governments and companies. There are those who believe they have the potential to make the world a better place.