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Currency was never meant to be a value store, ever. The US gold backing was a silly thing to start with. A currency's function is to be a glue, a common denomin
by pmlnr 6y ago
Currency was never meant to be a value store, ever. The US gold backing was a silly thing to start with. A currency's function is to be a glue, a common denominator.
- xiphias2 6y ago,,Currency was never meant to be a value store, ever. '' It's not that simple. If people wouldn't use it for store of value, seignorage wouldn't be so profitable for banks. Gold backing was also very profitable for banks, as they could sell the gold and lie to people about the gold still existing. It wasn't like people wanted it: gold was taken away by force and by shaming people who hoarded it.