Serendipity Daily Thoughts

Welcome back, my folks. I’ll jump into the main part of today’s writing immediately.

Now, isn’t it interesting to think that why we have such an imaginary system to get what we want? I mean, the money we use is usually only a piece of paper or a piece of cheap metal. The money exchanged through electronic devices does not even have a physical characteristics. But we still cherish money and our economy hugely depends on the system of money.

One possible reason why the current money system works is that the majority of people are interested in holding valuable assets such as gold and silver, but the demand for a piece of paper is scarce. If one can get one of valuable assets without any costs, people definitely try getting one, possibly leading to a sort of fight. As a result, winners are allowed to hold such assets, and losers needs to pay something to obtain them. Therefore, the losers start collecting or creating items that perceived as somewhat valuable so that they can sell those items in return for getting what they could not obtain.

Now it is imaginable how trades of items emerged. To make the situation easy to understand, we can imagine that someone has got a gold mine as a lucky consequence. Since it was considered as a high prestige to wear gold accessories, some people tried trading gold with other items such as alcohol and sugar. However, don’t you think the majority of people want to get alcohol and sugar as well? Then, what happens if those people try to exchange bread and milk with gold? It is somewhat going to be possible to trade necessary items with gold, because the owner of the gold mine has fundamental needs to consume necessary items as normal people do.

At this point, it is still unclear why we find value into just a piece of paper or metal. I would like to write further discussion tomorrow.

Thank you for reading through today’s piece of writing. I appreciate a lot if you leave a comment like – what money means for you.

See you tomorrow.