Because to spend, it means you need money. Money you generate from an income. ... When it all boils down, money is an agreement in society, to represent value (because money itself has no real intrinsic value outside of the raw materials). Therefore, with money, you can exchange that value with something else of value.
Right on. You've hit upon a key point. Money is something you seek not for the sake of money but for what (you believe) it will enable you to possess in the future. Money is the intermediation between producers and consumers of goods and services.
Two observations.
people may slowly be coming to value money for its own sake. Many people will say they want to be a millionaire. Some may have the awareness to understand they are expressing a desire to be in a position to exchange that money for one million dollars worth of goods and services. But I am beginning to believe that some people actually do want money for money's sake. It may provide some psychic benefit for people to watch their bank statements grow or make sure their neighbor knows they figures of those bank statements. This is dangerous and inefficient because it prevents capital from flowing to its most valuable application.
How is it that we arrive on this shared consensus of valuable money? More interestingly how do we simultaneously maintain this shared delusion of value?
Look at steemsilvergold community. We accumulate money, not in its fiat form, but in the form of silver/gold. Is it dangerous and inefficient because it prevents capital from flowing to its most valuable application, as you said above?
No I do not think so. I think silver and metals are valuable commodities. The logic for their exchange is quite different. Commodities served (and continues to serve) a superb store of value through turbulent times.
@ronaldovelino. I think the scenario of a simple drying up of present supplies of metals is very possible. The mindset of a stacker or collector is almost always "more". This is an unsustainable attitude towards money itself because money is an instrument to secondary goods and services.
that's right.but it is frequently said that cash isn't the most essential thing on the planet. For some individuals, in any case, it is straight up there beside air in significance. These are not really excessively materialistic individuals. Or maybe, they basically comprehend the genuine estimation of cash. Cash, all by itself, isn't extremely stupendous.