Value – The Bedrock of Every Economic Model

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11 Oct 2024

The Awakening
Very few people delve into the deeper workings of anything in life. They take everything at face value and as a result need more understanding regarding the mechanics of how the world works, at least compartmentally. An individual who does not understand a dynamic can be fooled or misled regarding that particular dynamic. If there is no plumbline of knowledge then whatever is suggested is accepted as truth or reality.
This can be seen in so many aspects of modern-day society. Ignorance is the foundation of deception, which is why, for a long time the average citizen was clueless regarding inflation and other economic constructs. That is beginning to change. As a result, leaders are being held to account. Tough questions are being asked regarding monetary and economic policies. Questions that leaders wish remained silent.
While citizens experience a great awakening regarding the financial and economic state of the world, many need to be made aware of a functional economy. Many economies rely on a tit-for-tat infrastructure that positions them and guarantees them a seat at the global table. This is not a practice reserved for economies and national leadership, it is also evident within the world of WEB3.
The Syndicate Model
Partnerships and relationships of mutual benefit make up the majority of tokenized transactions in WEB3. Now some acceptable partnerships and agreements have a certain ingredient which is value. It is the validation of authenticity regarding an economic model. The destructive power of debt exists, to a large extent when capital is guaranteed for consumption. In other words, what is acquired through spending has no value.
It is a means to an end. When I receive something of value in exchange, I can at any point sell it because it has value and cancel my debt. Hence, the wise approach regarding debt has always been the following:

Use debt for business or economic growth, not for living expenses.

What we have seen in recent times is the inverse of this idea. A tokenized economy is no different… value has to play into the picture somewhere. Sadly, this is why many WEB3 ideas fail. There is an initial buzz that eventually leads to a total collapse. Value counteracts selling pressure. Yes, momentary mispricing can create a “value investing” dynamic. However, it is a temporal opportunity.
The syndicate model has no underlying value. In other words, if you behave a certain way and perform certain activities. The underlying dynamic of such a construct is a shift from value to power. Participation is limited so the syndicate model becomes even more creative to incorporate a servant-master dynamic. Both of these scenarios are void of value.
Impartation is made on the premise of power and not value. This violation of an economic reality is what eventually throttles economic constructs. Eventually, the system is void of value. It is simply a case of power relationships and transactions. Look at what Elon refers to as bankrupt America what do you see? It is a system laden with power relationships and hierarchies outside appropriate behavior.
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Final Thoughts
Value must always be present when an entity is economic. Without it, it will ultimately fail. Many WEB3 kingpins refuse to accept this because many of them are involved in the same practices as the politicians they speak out against. The only problem is the humility or desire to see it is absent. Furthermore, it’s working for them. That alone causes them to ignore anything that contradicts their approach.
Partnerships/transactions void of value will corrupt the financial element of what is acquired. It’s a slow implosion. Then there is also the misinterpretation of value, but that’s for another time. Enjoy the weekend, touch some grass and I will see you in the next one!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.