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What is the true value of money?

Money is a medium of exchange, a store of value and a measure of value. Without any kind of money, we would have to rely on barter. It is hard to even imagine how impractical that would be. Instead of sending information over long distances, you'd have to send stuff over large distances or travel long distances to provide services. Our standard of living and the overall level of development would be drastically lower. 

There could be no banks and you could only lend goods. Imagine building a house with no banks to lend money. You'd have to borrow each and every piece of material and work performance separately. When your house were completed, you'd have a very long list of things you owe to different parties and the repaying of the loan would take years. To accomplish anything large and complicated would involve everyone keeping long and complicated ledgers of every little thing they owed to other people. Everyone would have to keep track of all favours they owed to everyone else separately and keep receipts of repayment, too, in case any disagreements occur. Getting anything more complicated than day to day survival without money would be extremely hard, which is why no civilization on Earth has ever existed without money. 

The value of money is how it can be used to create a layer of abstraction on top of who owes what to whom. It is very convenient that all debts are numbers because numbers are fungible. Owing a certain sum of money is the exact equivalent of another debt equal to the same sum of money, regardless of the reasons for the debts. Money makes debt obligations automatically liquid and able to be traded wholly or partially. Money is also extremely portable. You can easily carry paper notes or gold coins over large distances. Because of its fungibility, money needs no memory. The amount of accounting needed is drastically reduced. It also makes it possible to scale financial transactions to arbitrary sizes with the stroke of a pen. Stretching them to very long timescales is relatively simple, too, owing to money not requiring memory.


Honestly... it's what we all agree that it is.

That's all money is, an agreement.  

Money in itself doesn't have much value... you can't do a lot with it, and it's not very useful in particular situations... even gold is not that useful as a metal.  You can't make an effective spear out of it (although it would look amazing).

Money these days isn't even actual paper or plastic... it's just 1s and 0s on computers.


whatever two people agree upon it to be within an exchange.


It depends on the perspective of a person . How much value does money holds for that particular person. 

For instance

The person who have inherited the wealth and spending those money in his/her own way that person might not come across the feelings of how hard it is to earn money. While on the hand making those money more valuable aka increasing them to even further by that inherited owner knows the true value of money.

While there are people who works hard everyday and every penny they earn are valuable to them no matter what as they know the value of it and they will sure spend it wisely.

And people like us who needs money as well and we are doing something a little differently than most of the people out there. Earning money through online but still we need money in order to survive and all the other necessities like house/ food/ clothes this are also needed in order to maintain a social life.

So like I stated Money holds value in different ways depending on particular persons  perspective.


Money is worth the will of the ultimate, most fundamental backer's will to preserve the continuity of exchange and perceived value of exchange and the lengths that fundamental backer and/or interests will be met.  Most often the most fundamental backing of money is military might and will following the interest of the money through.


'' Money isn't everything, but 

without money  is nothing. ,,

 I wrote this three years ago.