How is the value derived though? I agree with the point that actually holding it is owning it nothing less, but its worth is related to the worth associated with it in society as a valued commodity.
How is the value derived though? I agree with the point that actually holding it is owning it nothing less, but its worth is related to the worth associated with it in society as a valued commodity.
In the modern world, it takes, on average, 31 metric tons of gold ore to produce just one troy ounce of pure gold.
The labor and energy that goes into producing that ounce gives gold a market floor. If the market price for gold ever dips below the cost to produce it, people simply stop producing it until that market price rises above the cost to produce it. This is precisely why gold isn't fiat.
Fiat is fake because there is no expense or labor involved in producing fiat.
In the modern world, it takes, on average, 31 metric tons of gold ore to produce just one troy ounce of pure gold.
The labor and energy that goes into producing that ounce gives gold a market floor. If the market price for gold ever dips below the cost to produce it, people simply stop producing it until that market price rises above the cost to produce it. This is precisely why gold isn't fiat.
Fiat is fake because there is no expense or labor involved in producing fiat.
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