The Philosophy of Money

"Price is what you pay. Value is what you get." - Warren Buffet

What is money, other than a medium of exchange? What value does it have? The answer to both questions is the same; money has no use and no value.

Then why is money valuable? And what is value? Value is arbitrary, it is relative to a given place and time. As Adam Smith's Theory of Value states, "Diamonds command a higher price in the market, but doesn't sustain a man's life like a morsel of bread." This creates a paradox of value. Hence a morsel of bread sustains life, but a diamond doesn't, so why is a diamond valued more than bread?

Life is arbitrary. It is what you make it. And so money is what you make it. A one dollar bill is one man's prized possession, and another man's untimely death. 

Conclusion

• Value is arbitrary.
• Money has no use, except exchange.