 |
|
Gold ticked a lot of the boxes of what makes a good unit of
Posted on: April 10, 2025 at 12:47:31 CT
JeffB MU
Posts:
71896
Member For:
21.39 yrs
Level:
User
M.O.B. Votes:
0
exchange throughout much of human history.
It doesn't rust or degrade, it has high value so that it can be a relatively convenient way to transport large values from place to place. The supply doesn't change radically from year to year, unlike fiat currencies which have no inherent value. It can be subdivided into smaller units.
One could use other metals of course, but the value of metals, like virtually everything else, is influenced by supply and demand, and the demand for a metal (or other good) increases when it is used as money in addition to its other uses.
It wouldn't hurt to diversify.
Digital currencies add a new dimension to what can be considered money. They tend to have no inherent value other than when it is desired as "money", or a unit of exchange, so the demand could potentially be very fickle and go to zero relatively easily. But it is an extremely inexpensive way to transfer wealth long distances, and could also provide privacy if governments don't start regulating it & picking winners and losers... which is a mighty big IF, of course. It could also provide some protection against government fiat currencies being inflated/devalued, also potentially to zero.
Again, it would probably be a good thing to have in one's portfolio for some diversity and flexibility if nothing else.
It doesn't rust or degrade, it has high value so that it can be a relatively convenient way to transport large values from place to place. The supply doesn't change radically from year to year, unlike fiat currencies which have no inherent value. It can be subdivided into smaller units.
One could use other metals of course, but the value of metals, like virtually everything else, is influenced by supply and demand, and the demand for a metal (or other good) increases when it is used as money in addition to its other uses.
It wouldn't hurt to diversify.
Digital currencies add a new dimension to what can be considered money. They tend to have no inherent value other than when it is desired as "money", or a unit of exchange, so the demand could potentially be very fickle and go to zero relatively easily. But it is an extremely inexpensive way to transfer wealth long distances, and could also provide privacy if governments don't start regulating it & picking winners and losers... which is a mighty big IF, of course. It could also provide some protection against government fiat currencies being inflated/devalued, also potentially to zero.
Again, it would probably be a good thing to have in one's portfolio for some diversity and flexibility if nothing else.
Please explain why this message is being reported.
MESSAGE THREAD
Gold ticked a lot of the boxes of what makes a good unit of - JeffB MU - 4/10 12:47:31