My point of view: Happiness is a state of mind, as it depends on our attitude, our gratitude and our satisfaction with what we have. There is no situation or object that can guarantee us happiness, as it is a personal and internal choice.
Is happiness a state of mind or an external condition?
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Both. Happiness is a state of mind but you can't be happy if your physical condition is not balanced. In fact, to be happy, you must balance the two extreme points. If you are poor and don't have food to eat, how can you be happy? If you are rich but have health issue, can you be happy?
