We have attempted to answer the question of whatValue is. In this section, we explore an interesting aspect of value, and what it might mean in practical terms.

Physics and Economics

Just like energy, value comes in two flavors: potential value and kinetic value.

Just like energy, value can neither be created nor destroyed.

Just like energy, value can be transformed from one form to another.

Just like energy, value can be stored and transported.

Just like energy, value decays over time.

Potential Value

As we already saw, value can be created any time an exchange occurs. Where does this new value come from, how does it get created?

In actual fact, value can not be created, it is just transformed from one form to another. Potential value is where an exchange may happen but does not because not all necessary conditions have been met, which include things like ease of doing the exchange.

Potential Value, which is what is everywhere, can be converted into something actual when the exchange is actuated by the two (or more) parties involved in the activity.

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