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How money works - Inverted Passion
Money is an abstraction of tangible resources or human effort. It is a promissory note for future goods or services. Unlike the time and effort that people spend on something, it is what money represents that gives it its value. And as an abstraction, it has no “real” value to our primitive brains, which judge the real value of food and shelter or
... See moreSimon Sinek • Leaders Eat Last: Why Some Teams Pull Together and Others Don't
From the preceding discussion, and from the understanding of monetary economics afforded to us by Austrian economics, the importance of sound money can be explained for three broad reasons: first, it protects value across time, which gives people a bigger incentive to think of their future, and lowers their time preference. The lowering of the time
... See moreSaifedean Ammous • The Bitcoin Standard: The Decentralized Alternative to Central Banking
For example, why does water, which is essential for life, cost nothing, while diamonds, which are mere ornaments, are highly valued? The resolution to this problem turned out to be in the effects of scarcity: goods whose supply is low relative to demand will command a higher price than goods whose supply is abundant relative to demand.
Philip Auerswald • The Coming Prosperity: How Entrepreneurs Are Transforming the Global Economy
Herein lies the triumph of commodification: it separates us from the things we evaluate. ”If a thing is to have a market value,” writes Hyde, “it must be detachable or alienable so that it can be put on the scale and compared.” Karl Marx similarly argued in Das Kapital, “I cannot express the value of linen in terms of linen”. This is why money has ... See more