Ive never been able to understand the concept of gold. Why is it so valuable? How do countries know that the amount of gold being held by other countries? Who audits these gold reserves to make sure the gold isn’t fake? In the event of a major war would you trade food for gold? feel like people would trade goods for different goods in such a dramatic event. I have potatoes and trade them for fruit type stuff. Is gold the same scam as diamonds? Or how is gold any different than Bitcoin?
In: Economics
Gold originates from cosmic events, primarily supernovae and neutron star collisions, which produce intense conditions necessary for the creation of heavy elements like gold. These cosmic explosions scattered gold particles throughout the universe, eventually embedding them in the formation of Earth over 4.5 billion years ago.
On Earth, most gold formed deep within the planet’s crust and mantle, rising to the surface through geological processes such as volcanic activity. Humans have been mining gold for thousands of years, valuing it for its rarity, malleability, and beauty.
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