In a traditional sense, value equates roughly to demand divided by availability.
If something is valuable it goes along these lines.
If one person wants to buy item X and there are a hundred of them, then demand represents one percent.
For arguments sake, we can value it at a cent.
And we can see, it is not very valuable.
Keeping it simple, if a hundred people want to buy item Y and there are a hundred of them, then demand represents a ratio of 1:1, call it a dollar or a Euro depending on where you live.
Now let’s look at what happens when demand outstrips availability.
If a thousand people want to buy item Z and there is one of them, then demand represents a ratio of 1000:1.
That’s a grand to you and me, or maybe just one of us.
You see, the figures are never this cut and dried and sought after items rocket in value in direct proportion to the insanity of those who seek them.
But you get the overall picture.
So what happens when people make more of something to fulfil a demand?
You can expect the physical value to go down right?
And what if suddenly there is a possibility of an infinite number of copies?
Think of China and the predominance of electrical goods that flood the market every year.
Think of the internet and digital goods.
I check the book chart in my local supermarket, because I like to know what sells. Not that I am ever influenced by it of course. I noticed the top three books this week are by the same author (Shades of Grey) and they had sold out of all but one book.
The interesting thing about this book is there are an infinite number of Kindle editions.
The traditional value system stops short when it comes to digital goods, so perhaps the model needs to change?
Society needs to switch to a value system which accounts for pleasure and usability. We also need to learn to derive more value from things which people provide for free, perhaps in turn providing something useful to someone else?
Then I really started thinking.
Imagine a value system which is driven by a bio chip inserted in your brain stem.
Imagine you gain credit by providing value to others.
Imagine you get charged credit for what you derive pleasure from.
Let’s say you can walk into a store and the value of each item has been derived by the amount of pleasure it has given to others, averaged across the entire population.
You get a retina scan and you have enough credit for a smart phone, a dishwasher and a car.
And those ultra rare items, well think about it.
The value of the item will be in direct proportion to its pleasure and usability.
I can’t see Chris Evans having a problem with his collection of Ferraris, but someone with a Van Goch in a room in a house they rarely visit?
And as these elite items bounce from pillar to post, will we unravel the haberdashery from the hyperbole?
And this blog, you are one of a few hundred readers. You hit it once, read it once and it has to be worth a dollar. Come back more than once and you must be deriving value. You can read over five hundred articles on this website, at least half of which will leave you squirming in your seat in pleasure.
So in the mean time, if you enjoyed reading this article, hit the free will button in the side bar and drop me some bucks for a latte.
See you on the other side of the looking glass,
Anurajyati (be in love!)
Credits: podcast features At The Cash Register.wav by digifishmusic & Construction work 02.aif by Stomp freesound.org
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