What Is Money, How It Works, and Why We Need It
Money is energy.
To begin to understand what money is, we take a look at its nature, how it works, why some people have it, and why others don’t.
Pre-Origin Times
I like to think that the need for money is triggered by a similar societal characteristic that triggers the need for law.
Both of these human-made concepts appear when a uni-individual society evolves into a multi-individual society.
Let’s take an example.
Imagine a hermit on an island. The hermit, by definition, lives alone.
He built his house by himself, feeds himself by himself, dresses by himself, and entertains himself…by himself.
The hermit’s “society” is a system made out of one person that interacts with his environment.
Does money exist? Obviously not: there is no one to buy from or sell to.
The hermit finds the needed resources in his environment, which is “free” (minimum work must be undertaken to extract and convert resources.)
The hermit’s society is utopian: there is no crime because there is no law (and alternatively, no one to kill or steal from).
