What money has to do with happiness.

Happiness is a complex concept that describes an emotional state characterized by joy, contentment, and positive feelings. Researchers in the field of happiness distinguish between long-term satisfaction, which is based on an overall sense of 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 influenced satisfaction and short-term feelings of happiness. These short-term feelings of happiness are triggered by a complex mix 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 discovered by Swiss economist and happiness researcher Bruno Frey. These include positive relationships, health, living conditions in terms of societal and political conditions, freedom, and self-realization. And yes, money also plays a role. Material wealth promises us financial security, a basic human need.

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

More money does not automatically mean more happiness. For a long time, science assumed that money makes people happier up to a certain amount, after which the curve of happiness levels off. A new American study now suggests that life satisfaction as well as daily emotional well-being continue to rise with increasing income. At least up to a higher limit of over $80,000 – about €75,000. The reason for this is that wealthy people feel they have more control over their lives.

The reason cited 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 associated control and security, undoubtedly play a role in our sense of happiness. However, 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 wealth but also by a strong democratic tradition, a high level of citizen participation, more equality, and less social inequality.

Renowned scientist Bruno Frey concludes that people in democracies with more participation and freedom, as well as decentralized politics where local communities can act independently, are happier. This highlights the importance of participation, equality, 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 could support this idea:

• Equality and justice. In a democratic system like cryptocurrencies, we have the same opportunities for access worldwide. We can perform transactions in real-time, thereby better fulfilling our basic needs.


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

• Participation and empowerment. Within the crypto community, users have the opportunity to participate in decisions regarding the use and distribution of money, thus helping to shape the system.

• Stability. Cryptocurrencies such as Bitcoin are scarce and predictable in supply, which can protect against monetary inflation. However, their market prices remain volatile and can fluctuate strongly.

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

Will cryptocurrencies be able to influence global happiness? This has not been researched. However, democratic monetary systems can bring benefits for each of us, as well as for society, governments, and businesses as a whole. There are indeed voices that attribute potential to them for making the world a better place.