Nick HutchisonFounder and CEO, BookThinkers

It may sound like a simple question, but what is money?💰

30 Nov 2023 · 1 min

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In this interview excerpt, Nick Hutchison asks the guest to define money, prompting a discussion that moves beyond everyday usage to a conceptual explanation. The guest argues that money is not inherently evil but a necessary component of civilization. He defines money as the compensation for the value one provides to the world, serving as a medium of exchange and a store of value. When a service is rendered, the provider receives money, which can then be used to extract value from the world by purchasing goods or services. The conversation emphasizes that money represents value exchanged between individuals and underpins societal functioning.

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You start off this book by talking about the history of money and defining some of the most basic terms of financial literacy. So if I was to ask you, what is money? How do you define money? I mean, most people, they use it every single day. They talk about it. They don't even know how to define it.
So my view on money— some people say money is evil. No, money is— we need it for civilization, right? My belief is money is the value— is you being compensated for the value you provide to the world, right? So if you provide a service to someone, they pay you money. And that's the store of exchange, right? That's your medium of how you're transacting. When you go to the store and you use your money, you exchange your money, you're extracting value from the world, right? So I believe money is kind of the value, and when you earn it by providing value to the world, right? And you take the world's value when you spend money.