September 15, 2016

The convenience of money

Money as a medium of exchange offers a convenience that doesn’t exist in a barter system.

Unfortunately, it seems like most people are confused about exactly what that convenience is.

The convenience of money ISN’T that $10 is worth the same to everyone. It’s that everyone’s $10 is worth the same TO ME.

Because money has numbers associated with it, it gives the impression of being mathematical and absolute and objective.

In fact, money is highly emotional and subjective.

Prices (presented as a dollar amount) are 100% totally and completely subjective (and the buyer is the subject).

And as a seller, you don’t get to say whether your price for a given product or service is “worth it” - only the buyer gets to decide that.