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0 pointsBurningFrog7y ago0 comments

> if we're willing to put 'value' in a piece of yellow metal (gold) or a clear piece b of rock (diamond), then why not a smooshed piece of paper (currency)?

The difference is of course that people can create any number of pieces of paper with numbers on them, but they can not create gold.

So you can be sure that your pieces of gold will be equally rare in 10 years, but the rarity of your 1000 Elbonian Dollars depends on the whim of people.

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crooked-v7y ago

> but they can not create gold

Sure, but they can mine, discover, or loot more of it.

> So you can be sure that your pieces of gold will be equally rare in 10 years

Consider historical events, like the colonial Spanish economy going kerplooey because they brought back too much gold from the Americas and it made the value of the stuff drop like a rock.

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