Originally Posted by
Reynolds
This includes money?
Of course!
It's a bit disquieting to think about, but the value of currency depends on our collective agreement to give it value when negotiating exchange for goods or services. That's why the value of currencies fluctuate, and why currencies can lose value suddenly if there's a collective loss of faith. Money has value because we decide it does.... and because it's easier to trade for a "carrier of value" like money than to insist on goods/services in trade. If I'm a carpenter who repairs your deck, I'd rather have a flexible, portable, stable form of value than 500 eggs, or a llama, or whatever you would offer in trade with me.
Another example: my wife thinks my old bikes are not worth much at all, and she sees no real beauty in them. Whereas to me, they are both beautiful and valuable. Who is right? Both and neither.