The gold standard proved problematic as gold is not evenly distributed around the world and the supply of gold kept changing.
We live in a digital age where people want to move money around with computers. What happens in the digital age is that banks will create a large number of derivatives based on gold.
Gold based derivatives are as problematic. Like the myriad of other derivatives in the market, the supply of the derivatives will have boom and bust cycles and will be ridden with scandals like the FTX scandal which rocked the crypto world this month.
It turns out that people can use anything that they value for money. A large number of people currently value crypto and are using crypto as money. IMHO: the best solution is a robust market with a mix of equities and monetary scripts.
This is the direction that the market is heading.
BTW: One last problem with gold is that is a large number of gold plated lead slabs. With all of the fake gold coins on the market, I personally don't feel comfortable investing in gold.
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I totally agree, we live in a world dominated by digital, including money, yet gold continues to play a major role as a valuable asset considering also that more and more people are losing faith in fiat money and everything it stands for.
I would not rule out the value potential of gold at all, I think that in the future both this yellow metal and BTC will replace the fiat system, the important thing here is not to let institutions or centralised entities take control of both financial media.
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Just as cryptocurrency is permissionless and trustless, so is gold. As long as gold money is used by weight rather than currency amount, any gold coin can be used as payment regardless of location. Just as cryptocurrency can be verified and authenticated, gold content can be tested to ensure content and purity.
The safest way to invest in precious metals is at the micro level: local coin dealers. Some people are more comfortable purchasing gold online than others, and that's OK, too; for those not so comfortable doing that, the brick and mortar shop is still the way to go.
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