From water to cryptocurrency: The paradox of utility and market worth

There was a really fascinating thriller that has been occurring for a few years. It’s often known as the paradox of worth or the water-diamond paradox. Many economists and philosophers have tried to determine it out with out a lot success. The principle thought behind that is the contradiction that though water is crucial for survival, its value available in the market is way decrease in comparison with the value of diamonds. Everyone knows that diamonds don’t have a lot sensible use in our on a regular basis life, particularly in comparison with water.

The idea of utility is the primary factor behind this contradiction. As we simply talked about, water is essential to all of us, and its utility worth is extremely excessive. However, diamonds are an costly luxurious merchandise with restricted sensible use, making their use worth very low. On the identical time, after we evaluate the costs of each available in the market (not everywhere on this planet, however total), the value of a diamond is many instances larger than the one in all water. This raises the query of what determines the market worth and what are a very powerful components that have an effect on it. Is utility the primary issue behind the market worth or there’s something else?

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