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This is pretty interesting. How much would the price of gold skyrocket if it were adopted as the international currency peg/medium of exchange/etc? Divide all t
by marvin 18y ago
This is pretty interesting. How much would the price of gold skyrocket if it were adopted as the international currency peg/medium of exchange/etc? Divide all the money in the world on the amount of gold available. That's the new price per ounce of gold. It would be a massive increase.
With a gold price that high, it might become profitable to just synthesize gold in a nuclear reactor. Which would destroy the point of imposing a gold standard in the first place. Even if it wouldn't be profitable with today's technology, it would become a very lucrative field. Which you would have to outlaw. Etc. etc. etc.
What all the gold nerds are really clamoring for is an international agreement saying that no one will ever increase the money supply. This won't happen. A system of fixed currencies is as unrealistic as every nation suddenly deciding to adopt communism.
- cousin_it 18y agoYou could tie the currency to energy, then individual people synthesizing it would be a good thing.
- asmithmd1 18y agowould it? Say you invented infinite, free, clean energy. You would wind up heating the earth as all the energy would have to dissipate somewhere. What does everyone really want? Happiness - if you generate happiness then your Wuffie account should be credited.
- sethg 18y ago...more mundanely, countries with lots of gold available to mine could manipulate the rest of the world's economies by strategically deciding when to grant or restrict mining concessions. It would be an interesting mathematical exercise to define a cryptocash-like token that could be subdivided indefinitely without being duplicated--you could use this token as the basis of a permanently fixed money supply. Not sure how useful that would be in real life, though.