Money has always been about trust, value is completely subjective.
And thus effectively imaginary, proving the point in my original post. And like all imaginary things, it only holds power over us if we believe in it.
As to gold vs. fiat, if I offer you a currency backed by gold or the same amount in a fiat currency back by the faith in a nation-state, which would you choose, all other things being equal? Which is the more stable investment? Which will hold value after the nation-state collapses?
And thus effectively imaginary, proving the point in my original post. And like all imaginary things, it only holds power over us if we believe in it.
Yes, but you went on to make claims that gold is somehow inherently different. Which it is not. Gold is only valuable valuable because you believe it is as well.
As to gold vs. fiat, if I offer you a currency backed by gold or the same amount in a fiat currency back by the faith in a nation-state, which would you choose
Fiat… The nation is less likely to have a massive depression and more able to recover from one of it does happen. I don’t think you understand that it doesn’t matter if a currency is backed by gold or not. You are still trusting the country to pay you that gold, or to release the gold at the price you originally bargained for… That doesn’t happen in a recession.
Why do you think the US made people turn in their gold during the depression and then cease all redemptions?
Which is the more stable investment? Which will hold value after the nation-state collapses?
Stable… Again, fiat currency. Value after the collapse of a nation state? Who the hell knows? At this point if we experienced a complete collapse I would probably rather have the value in guns and ammo. However, i’m not betting on the world to end any time soon.
And thus effectively imaginary, proving the point in my original post. And like all imaginary things, it only holds power over us if we believe in it.
As to gold vs. fiat, if I offer you a currency backed by gold or the same amount in a fiat currency back by the faith in a nation-state, which would you choose, all other things being equal? Which is the more stable investment? Which will hold value after the nation-state collapses?
Hint: it’s not fiat.
Yes, but you went on to make claims that gold is somehow inherently different. Which it is not. Gold is only valuable valuable because you believe it is as well.
Fiat… The nation is less likely to have a massive depression and more able to recover from one of it does happen. I don’t think you understand that it doesn’t matter if a currency is backed by gold or not. You are still trusting the country to pay you that gold, or to release the gold at the price you originally bargained for… That doesn’t happen in a recession.
Why do you think the US made people turn in their gold during the depression and then cease all redemptions?
Stable… Again, fiat currency. Value after the collapse of a nation state? Who the hell knows? At this point if we experienced a complete collapse I would probably rather have the value in guns and ammo. However, i’m not betting on the world to end any time soon.
I thought that was only gold from criminals or certain people, not the general populace.
Nope, it was illegal to have more than $100 worth of gold.