3 ms·
Also one of my favorites, futures derivative contracts are like second derivative meta on reality :-). The invention of money[1] was an example we used with our
by ChuckMcM 3y ago
Also one of my favorites, futures derivative contracts are like second derivative meta on reality :-). The invention of money[1] was an example we used with our kids to explain the difference between "money" and "wealth"[2]. Because once you can internalize that distinction, you can ask yourself "is this expensive or is it valuable?" and get a reasoned answer to that.
[1] https://en.wikipedia.org/wiki/Rai_stones https://en.wikipedia.org/wiki/Rai_stones
[2] While many people associate "wealth" with "being rich" it actually has a economic definition unrelated to whether or not one possesses more or less of it than their neighbors for friends. From Investopedia, "Wealth measures the value of all the assets of worth owned by a person." which you can give an example of that owning a bicycle is "wealth" that is an asset, and you can use that asset to get to and from a job that is further than you can walk, so that asset (wealth) enhances your ability to generate capitol (money) to fund your daily needs and to acquire more assets (wealth).
- carbotaniuman 3y agoWhat would the first derivative be here?
- ChuckMcM 3y agoThe future itself is the first derivative, it's a bet on the rate of change in terms of availability and/or consumption of a resource (hence the slope of the production curve), the second derivative is rate of change in the interest in the rate of change of the availability :-).