6 ms·

How so?

• maerF0x0 8mo ago
  I guess because gold isn't created by decree?
  • BlarfMcFlarf 8mo ago
    Supply is only one half of value. The demand for gold is almost entirely speculative, whereas dollars can be directly used for almost anything.
    • maerF0x0 8mo ago
      The issue isn't it's usefulness in small transactions. The issue is who decides. In the case of gold a huge distributed system decides the valuation of Gold. Yes we usually use USD as the comparator. But there is a Gold:RealEstate ratio, Gold:Oil Ratio, Gold:Bread ratio. No single or small number of actors can change that in a meaningful/reliable way.[1] Whereas USD can, and has been, printed at an exponential rate. [1] -(Let's exclude intentional market manipulations like if a world leader were to buy a bunch of gold and then saber rattle to drive up fear).