Money is just the wrapper, while value is the actual gift inside.
Scarcity is the law of Money system.
There is always Scarcity in the Ecosystem of Money. To have Money you must either Produce or Provide Something.
Technically we don’t need money, But we are in need of either Service Or Product.
The Fundamental Principles of the Monetary System
The Law of Scarcity: Scarcity is the foundational law of any monetary system. Within a financial ecosystem, scarcity is a constant and necessary feature to maintain value.
The Value Exchange, to acquire money, you must offer a contribution of equal perceived worth. You must either produce a tangible good or provide a valuable service (must cover the scarcity gap).
The Accumulation Paradox (The Matthew Effect), as the saying goes; ‘To those who have, more will be given; but from those who do not have, even what they have will be taken away’. This highlights how wealth tends to compound where it already exists and deplete where it is lacking.
The Core Realization, as mentioned earlier that technically, we do not have a need for money itself. Our true need is for the products and services that money facilitates. Money is simply the medium of exchange we use to bridge the gap between our production and our consumption.
Essentially this describes The Double Coincidence of Wants. Before money existed, if I had a goat and wanted bread, I had to find a baker who specifically wanted a goat (Kinda of barter system trade). Money solved that problem, but we often get so caught up in chasing the tool (money) that we forget the goal which is the value.
Everything boils down to Discipline. A money system without the discipline of scarcity eventually fails because the “temptation” to create more money for short-term gratification is too high for any centralized power to resist.
