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 its utility, such as diamonds), emphasizing subjective human perception.
From the perspective of Western economics, diamonds have value, but from 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 views below are based on Western economics."
"Why are diamonds so expensive?" That is because a group of people believe that diamonds represent eternity, reflecting the eternal nature of love, the ultimate symbol of eternal and unchanging love, and are willing to pay a high price for it.
"Why was Leonardo da Vinci's painting 'Salvator Mundi' auctioned for $450 million?" That is because a group of people understand the spirit and creativity behind this painting, carrying multiple meanings of religion, philosophy, art, etc., and are willing to pay a high price for it.
Therefore, from the above questions, we can infer that "the essence of value is consensus." Cryptocurrencies represented by Bitcoin also derive their value from consensus. What influences 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.