How is gold so valuable and the basis of currency, if it’s just being stored and not used for anything?
In: Economics
Gold is used for way more than currency, That’s where it’s real value is now.
But long ago, it was something shiny, rare, and something people wanted. They wanted to make shiny things out of it, and the knew others did too. I’ll trade you a pinch of this shiny metal dust for a pint of beer.. you’ll trade that cup of shiny metal dust to pay your mortgage on your bar. That shiny metal keeps getting traded till someone is wearing it as a crown. But at the end of the day, it’s only currency because we said it is.
Kinda like the $,€,£,¥…. it like gold is only worth what we say it is.
Iirc, the money we have in circulation is supposed to represent X-ammount of gold stored. That’s why gold just sits. Hopefully there will be smarter answers than mine.
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