alt Hacker NewsThis is well documented in the the book "The Mystery of Capital" by Hernando de Soto. When it was published I thought it would change the world, but apparently nobody cared. :-)
In his thesis, this is the reason capitalism cannot work well in Latin America and other nations around the world. He says that registered land ownership is the foundation of capitalism. This is how one can borrow money against your land and invest it to make more capital. Very common for example with farmers in N. America to borrow against their farm, for machines, seeds and fertilizer.
(I am not an economist)
The reason capitalism cannot work well is that it assumes endless resources and infinite growth, not because people don't like electronic transfers. Capitalism is failing in all countries and those that are not are already transitioning to some form or another or post consumerism.