I hear some economics arguing that currency should be pegged to gold as a way of ensuring that its value isn’t arbitrary / volatile but I don’t understand how this would solve the problem. I understand that gold is a scarce resource that is difficult to mine but is it this alone that gives it intrinsic value ?
In: 115
Saw a video on why the Fallout series uses bottle caps for currency and similar reasons for why we use gold.
From the top of my head, the video said gold and caps are good currency because they’re:
1. Rare, but not too rare
2. Instantly recognizable
3. Hard to counterfeit
EDIT: Here’s the video – [Why are bottlecaps REALLY used as money?](https://www.youtube.com/watch?v=zzaTP6s_HcY&t=410s)
(some points from the other comments are also mentioned, namely that gold is nonreactive and easy to shape, and aside from electronics and decoration, gold doesn’t have practical use besides being currency)
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