If it is backed by gold, how do you get your worth of gold if you need to? Where it stored and who controls it?
If you can't easily, at any time exchange your gold-backed currency to the exact weight of gold it represent without any additional fees or taxes and back - it is not gold-backed currency at all.
The reality is currency is NOT backed by gold, gold IS backed by currency.. Why does anyone want gold? Only because it's redeemable for cash. It's cash value IS it's only value. No one cares that money isn't worth gold, but no one would even want gold if it weren't worth money.
Gold never had inherent value.nit has no more inherent value than cash does.
Agree. Anything could be means of exchange. if it have trust and agreement among users. Gold once was just a utility metal among Natives of Americas and not a currency. There is no any guarantee that it will not become just utility metal again.
I think there are no any substance or objects that have some absolute value as currency and in any circumstances could be means of exchange. Currency is more social phenomena than something absolute.
From the other side currency is just a tool to solve some problem, which is useful as long, as it solves that problem or problem itself exists. It is not very hard to imagine situations when there are no any need for any currency at all, since it is jut not needed or have no any sense, like, IDK, horseshoe in 21 century. If you have some advanced 3D printer working on subatomic level, something like StarTrek replicator, f.e. what is the purpose of currency will be?
If it is backed by gold, how do you get your worth of gold if you need to? Where it stored and who controls it?
If you can't easily, at any time exchange your gold-backed currency to the exact weight of gold it represent without any additional fees or taxes and back - it is not gold-backed currency at all.
The reality is currency is NOT backed by gold, gold IS backed by currency.. Why does anyone want gold? Only because it's redeemable for cash. It's cash value IS it's only value. No one cares that money isn't worth gold, but no one would even want gold if it weren't worth money.
Gold never had inherent value.nit has no more inherent value than cash does.
Agree. Anything could be means of exchange. if it have trust and agreement among users. Gold once was just a utility metal among Natives of Americas and not a currency. There is no any guarantee that it will not become just utility metal again.
I think there are no any substance or objects that have some absolute value as currency and in any circumstances could be means of exchange. Currency is more social phenomena than something absolute.
From the other side currency is just a tool to solve some problem, which is useful as long, as it solves that problem or problem itself exists. It is not very hard to imagine situations when there are no any need for any currency at all, since it is jut not needed or have no any sense, like, IDK, horseshoe in 21 century. If you have some advanced 3D printer working on subatomic level, something like StarTrek replicator, f.e. what is the purpose of currency will be?