Gold (standard)

“Returning to a #goldstandard or using #gold as a means of #payment is unfeasible, because there is not enough gold in the world.”
Wrong: any amount of a currency can be used for payment in a large economy: the prices will adjust. If gold is really that scarce, it will take less gold to buy a good or service. Since gold can be divided up, even gold dust (measured in grams or even smaller units) can be used to make small payments. One can even go so far as dividing the currency unit into atoms of gold. (This will need electronic payments, one cannot phusically maintain cash payments in such a system)
Electronic transfers will still be possible in a gold system, and may require a large centralized warehouse of gold, where the claims/titles to gold can be easily transferred, without having to transfer the physical gold between bankvaults.
And if the shortage of gold becomes too much of an inconvenience, the economy may switch to silver or copper, tin, lead, iron, shells, leaves, liquids like deuterium, whatever customer & provider can agree on.


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I am an author & an anarcharchist

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