Posts Tagged ‘money

15
Feb
18

Value II

The valuation of goods is based on rarity, as perceived through an anthropomorphic veil.

True value, can only be represented as the energetic costs of their production.

The work required to extract and consume minerals is worthless unless repeatable. I will make reference to a greater wisdom than mine:

Only when the last tree has died and the last river been poisoned and the last fish been caught will we realise we cannot eat money

We are caught in a logical fallacy, a religious belief that the means of production represent value, when in fact they largely represent destruction of real value, in the consumption of life itself.

19
Jan
18

Theconversation II

Evening, you are of course correct that the market, in itself, is simply an efficient medium by which to exchange, the work done by increasing entropy.

Money, the medium of exchange, is now digital, existing as a construct. So what will you tell your child when they ask where monies come from? Is it like the milk from the store, does money come from banks?

As the medium of exchange, every transaction phases through money. Money is work, an expression of the ability to do work. Work is energy. The entire capitalistic venture is built upon the ability to make a transaction to exchange energy.

The market however, does not judge the value of a thing, based on the amount of energy consumed. The value of the thing, is dependent on demand, the want for a thing, the expectation that a thing can gain you a profit. Therefore the actual exchange of money is not a pure exchange of energy.

So money, in a non-fiat world, becomes a representation of the willingness to pay for a thing that has consumed energy. It in no way represents the potential energy of the thing itself.

In such a way has bitcoin gained value, it consumes a prodigious amount of energy and yet has no physical potential to do work. Bitcoin is postmodern money in a false economy. Based on short term demand and the assumption that the energetic economy can continue infinitely within a finite world.