micah c. miracle on Nostr: Centralization killed gold. In order for gold to be used efficiently as a medium of ...
Centralization killed gold.
In order for gold to be used efficiently as a medium of exchange, banks needed to hold the bulk of a user's supply. That way a system of 'trustworthy' paper checks and reciepts could be issued by the holder to the user.
This allowed the user to make quick purchases, both large and small.
Of course, when the bank issued more paper than they held in gold, the results spoke for themselves.
In order for gold to be used efficiently as a medium of exchange, banks needed to hold the bulk of a user's supply. That way a system of 'trustworthy' paper checks and reciepts could be issued by the holder to the user.
This allowed the user to make quick purchases, both large and small.
Of course, when the bank issued more paper than they held in gold, the results spoke for themselves.