The Nature of Money

Money is a distribution of resources, and I often think of it as malloc in C. I believe this captures the essence of money. Unfortunately, many people, when considering money, only see “money” itself and fail to think about what it represents behind the scenes. This can lead to significant blind spots in how we perceive finances.

For instance, if you find yourself alone on a deserted island with 10 million, you still won’t be able to accomplish anything because money cannot be converted into resources. You can only rely on your own abilities to gather resources; at that point, money becomes utterly useless. This example illustrates two key characteristics of money: resource distribution and exchange. Exchange (or trade) is the key to money’s effectiveness, while resource distribution embodies the deeper meaning behind it.

Once you understand this, it becomes clear that the amount of money does not accurately reflect the availability of resources. There is a finite amount of food, oil, and labor; printing more money will not change that. Thus, I view saving and investing as “control over future time and resources.” However, from the perspective of resource distribution, it inevitably compresses your allocation for other things, such as buying a little less coffee or games.

I don’t want to live in a world where everyone is wealthy; that’s not what we should aspire to, nor does it hold any real meaning. I want to live in a world where money truly rewards those who create value—that is the genuine way to advance society.