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> economies can crash. Gold can not…

A glance at the gold prices and economies of the 19th century show that in fact the gold price certainly can crash due to gold strikes.

In addition, the stock of the planet’s gold is negligible compared to the global economy (the hard to quantify set of transactions that people do with each other) so by definition can only operate at the margins. If the world crashes so far that gold is a meaningful proportion, will there be much to transact at all?



The exchange rate for gold (i.e. the interface of an economy with the material) can crash, not gold itself, thus the inherent value. That was my point, sorry if that wasn't coming across.

>If the world crashes so far that gold is a meaningful proportion, will there be much to transact at all?

This is where I start speculating, but couldn't we just create an arbitrary new currency and tie it to gold?


> The exchange rate for gold (i.e. the interface of an economy with the material) can crash, not gold itself, thus the inherent value.

What do you think this means? Because gold is only worth what you can trade it for - the exchange rate.

It has no "inherent value" - you don't eat gold.


> This is where I start speculating, but couldn't we just create an arbitrary new currency and tie it to gold?

How is that different from using the gold? i.e. has the same limitations.

There are rational reasons for the gold standard having been dropped.




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