People have always asked the question, what is the true value of money? We as a society have grappled with the idea that money makes the world but the true question is, where did money come from and does it really have any value at all?
The definition of money clearly states “any clearly identifiable object of value that is generally accepted as payment for goods and services and repayment of debts within a market or which is legal tender within a country”, so from this, we can assume money is used for trade purposes. It seems to have evolved from ancient ways of trading which would have been livestock, grain or other skills that can be traded for another good.
It seems as though society has leant more towards the commodity of money when trading other goods seems to be less fair than others, therefore started to introduce some form of payment that another person could use later on down the line. Even though we have developed as a civilisation, it seems as those who were in power decided to introduce legal tender. Take America for example, it is now a federal crime to create your own currency, which seems bizarre consider legal tender is a concept that was created to trade, so why stop others from doing the same unless you want to control it.
The value of money has been placed by society, we have given such things as gold, copper and silver a value, within the value has set the bar for keeping its value. It’s the unanimous acceptance that money has any value at all, for as long as we still feel there is a value to it, money will continue to be something we trade. Now for all those thinking that I’m a communist and against capitalism, that’s not what I’m talking about, I’m talking about the dominance of something that isn’t real. If you truly asked yourself, how can a piece of paper be worth £50, it can only be worth that because we completely accept that it is worth £50 aka legal tender.
As we now enter a society that is hi-tech and starting using technology to improve our lives, how will this effect money for the future. Experts predict that eventually, all our money will be digital and that we will trade electronically, but it’s not for now. It seems that these places that make money such as the mint, are using technology to make money less likely to be counterfeited, but at what cost? Because someone had to invent the technology, so they’re paying someone to integrate into our lives but they have to pay for the good as that’s part of trade, so how do you pay someone to make something such as money, it’s rather baffling (money to make money).
So what is the true value of money? Money only holds its value because we as a civilisation see it as something which has trade value until we change our minds at which point it would then eventually become worthless.