Finding Value

As someone who loves the idea of capitalism and the ‘free’ market, it often gets my ‘hackles’ up when I hear people chime in on what something ‘should’ be worth.

It happens with everything from hot dogs to houses.

“That’s Outrageous, $8 for a coffee!!!”, 

“$400 for a hotel room… Highway Robbery!” 

“$80 for a T-Shirt… Who’s going to pay that?”

“$120,000 Truck… What the What!!”

Just because you won’t pay an amount, does not mean that ‘everyone’’ won’t pay an amount. Here lies one more example of the human struggle to see the world through someone else’s lens.

The beautiful thing about value is that it is different for each person, and at each point in time. 

Value is quite simply the amount someone is willing to pay.

The moment Post Malone purchased ‘The One Ring’ Magic the Gathering trading card for $2,000,000 it instantly became worth $2 million precisely at that time. 

Apparently there was more to that story. The seller of ‘The One Ring’ met with Malone and discussed all things ‘Magic’. The outcome of their meeting and connection led to the 2 Million dollar transaction. 

It was not the value of the cardboard and some printer ink, but rather scarcity, network effect, relationships and, much more that ‘created’ the value. 

It was uber exciting when Hazel pulled a $520 rare card this week before bed.

How do I know it’s worth $520?

I could say it is because the market values are listed on our card app, with a record of market activity and trades. But, the real answer is I don’t know.

The day Hazel decides to sell her card, and accept cash in return for her rare gem, is the day true value will be determined… for that moment.

Till then I will keep making guesses, with the best information possible.

• Now that’s a peak ethos.