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
Well initially it became popular because it was an easy to use soft metal. It’s still popular today for electronics and other industrial uses.
So it being rare and useful in life made it valuable in other aspects like diamonds, it was used as jewelry to show wealth since it is quite rare.
Since it’s a commodity one piece of gold is like every other piece of gold a global price could be set for it therefore it’s useful for trading as a form of money
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