What is Value#
"Marxist Economics" believes that the value of a commodity is determined by the average amount of labor necessary to produce it. Only products of human labor have value, things like diamonds have no value as they are not products of human labor.
"Western Economics," on the other hand, believes that anything we like has value (regardless of utility, such as diamonds), emphasizing subjective human perception.
From the perspective of Western Economics, diamonds have value, but according to Marx's definition, they do not, so before discussing the "essence of value," it is necessary to explain "what value is," otherwise it would be meaningless.
What is the Essence of Value#
"Note: From this point on, all the following views are based on Western Economics."
"Why are diamonds so expensive?" That is because a group of people believe that diamonds represent eternity, the eternity of diamonds reflects the eternal love, the ultimate symbol of unchanging love, and are willing to pay a high price for it.
"Why was da Vinci's painting 'Salvator Mundi' auctioned for 450 million dollars?" That is because a group of people understand the spirit and creativity behind this painting, carrying multiple meanings such as religion, philosophy, art, and are willing to pay a high price for it.
Therefore, from the above questions, we can infer: "The essence of value is consensus." Cryptocurrencies represented by Bitcoin also derive their value from consensus. What affects the price of Bitcoin is not those who dismiss it, but those who have consensus, and this consensus group is constantly expanding.
We cannot understand the value of something simply because we do not belong to the consensus group of that thing.