3 ms·
The gold standard, in the same way, formerly removed much of the ability to conduct monetary policy, and it was supplanted because it turned out that counter-cy
by nwah1 9y ago
The gold standard, in the same way, formerly removed much of the ability to conduct monetary policy, and it was supplanted because it turned out that counter-cyclical policy was very useful.
Cryptocurrency is similar except that it wastes a lot more energy to accomplish the same thing.
The government, of course, retains unlimited power to tax, so the ability to fund whatever it wants is retained in all cases.
- mcguire 9y ago"Cryptocurrency is similar except that it wastes a lot more energy to accomplish the same thing." Out of curiosity, what's the carbon footprint of bitcoin mining as compared to gold mining (and then parking the gold in a depository vault)?
- nwah1 9y agoGold mining is ecologically destructive, but varies based on the form. When gold becomes absurdly expensive, as would happen under a renewed gold standard, it would be very likely that the proposals to mine the sea floor would be pursued, and could have major ecological damage. As for carbon footprint, specifically, I don't know. Thankfully, USD is not based on gold at all.