The easy way out
Posted Nov 6, 2012 14:16 UTC (Tue) by khim
In reply to: The easy way out
Parent article: Let’s Limit the Effect of Software Patents, Since We Can’t Eliminate Them (Wired)
The funny thing about trying to replace paper money with gold is that the value of gold is actually just as intangible as the value of the printed paper.
It's not the question of replacement of printed money with non-printed money. This is about replacement of "hallucinogen money" which are just numbers on some computer (which invariably leads to "irrational, malevolent, and unintended results") with something backed by tangible (which can be used as property even if indirectly).
Some properties make it a good choice in special cases like in electronics.
And some other properties return it back to forefront when yet-another-pyramid of paper money inevitably collapses.
In reality gold has only three properties which are important in this case:
- It's really hard to create or find it (that is: it's tangible property which will not suddenly become worthless)
- You don't need much space to hide it (that is: it's convenient to move it around)
- You can relatively easy test if it's real or not (most metalls which are denser then gold are more expensive, too - and even things like Tungsten coated with gold can be detected without too much difficulty).
That's why after 1001th collapse of hallucinogen money people usually return back to gold.
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