I just finished reading this titled Managing Scarcity through Skillset Diversification post by @josediccus, and I enjoyed it very much.
But while the post was about skill set diversification, so that you always poscessed an in-demand skill to make money. The post also spoke to me about value. What makes a skill, an item, a precious stone, or anything else have value.
I enjoyed this post.
I want to understand the ever changing world around me, and this article addresses the basic dynamic of value. It lies in the eye and needs of the beholder. People like to think things have inherent value, but in reality for many things value is made by people.
You give the example of wood art and then glass art, as things once valuable because people valued them. When people moved onto glass, it became valuable, and wood decreased in value.
Bitcoin is a conudrum for may people trying to wrap their minds around it and why it is valuable. people give it value.
people like Warren Buffet argue that Bitcoin isn't a stock in a company which makes goods people want to consume, so it doesn't have any value.
I think Warren Buffet is billionaire because he is very good at figuring out where value is moving to, but he uses his metrics of value to correctly guess. But I think he misses out on the theme that people give value to things including stocks. People give value to McDonalds hamburgers because they perceive them to be good and worth the extra cost. So McDonalds has value. If people stopped liking McDonalds they would stop eating there and the stock price would drop as earnigs dropped. McDonalds would still be making something as Warren likes to say, but those things don't have inherent value, they have value because people give them value.So even if McDonals continues to make something people don't like it's stock would lose value.
Bitcoin has value because it makes something people value. All of Bitcoin's traits and talents are what people value, so they give it value. Warren buffet is certainly a smart person, so I hope one day he understands value is not always something you can measure with his metrics. Its something people poscess and imbue things with.
:)
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Thanks, I see you made it into a post and good to see you express appreciation for the post. In reality, I think that innovations will birth innovations, the world is changing and sometimes we're still struggling with knowing what is likely to retain value or what can be considered valuable.
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