imnuso on Nostr: People didn't move away from gold because it was too scarce (it isn't). They just ...
People didn't move away from gold because it was too scarce (it isn't).
They just added a more liquid layer that would eventually become fiat. We are doing the same thing now with bitcoin, lightning, ecash, etc. Hopefully not back to fiat though.
Btw, secondary money, credit, and some elasticity between them isn't a bad thing. Gold backed paper money came along with an unprecedented level of human progress.
I think this is because such a monetary setup allows for accelerated expansion and contraction phases based on societal needs. It optimizes risk management, liquidity, capital allocation, etc.
They just added a more liquid layer that would eventually become fiat. We are doing the same thing now with bitcoin, lightning, ecash, etc. Hopefully not back to fiat though.
Btw, secondary money, credit, and some elasticity between them isn't a bad thing. Gold backed paper money came along with an unprecedented level of human progress.
I think this is because such a monetary setup allows for accelerated expansion and contraction phases based on societal needs. It optimizes risk management, liquidity, capital allocation, etc.