When we exchange what we need, we use money as a medium instead of trading ‘goods for goods.’ In this context, money acts as a means of exchange. When we exchange what we need, we also build wealth by passing on added value to each other. In other words, money functions as both a medium of exchange and a measure of value, as well as a tool for accumulating wealth. But isn’t this a bit strange? Although exchange value comes from goods and surplus is generated from this exchange value, the object used to measure and accumulate wealth is money, not goods. This is because money alone has the privilege called ‘compulsory circulation power.’ In other words, even if value is created, added value cannot be realized unless it’s exchanged. The ability to enable such exchanges is what we call ‘compulsory circulation power.’ - Joseph’s “just my thoughts”
Price and value are different things. Value is relative and subjective, but price makes those numbers tangible and helps us empathize with others. The result of that empathy is a deal, an exchange. Only when value is assetized does wealth arise. The way to assetize values is to price them. In other words, pricing is the process of valuing assets. Determining whether the value assigned to an asset is appropriate is called investment. From an investor’s point of view, investment begins by questioning the objective price of an asset. Consumption is the exchange of goods and services at a price agreed upon by all parties. Consumption and investment are two distinct concepts. - Joseph’s “just my thoughts”