However, the lustrous and metallic qualities of gold, its relative scarcity and the difficulty of extraction have only increased the perception of gold as a valuable asset. It was not a central bank, but a central architect named Satoshi who decided on the right supply of Bitcoin. Until eternity, 21 million are the supply. And there is no mechanism to remedy this if it turns out to be incorrect.
Gold is not a fiat currency. Fiat currencies derive their value from the issuing government. Unlike paper money, gold cannot expand to meet the needs of struggling central banks. Because of its inherent scarcity, gold will always be supported.
This precious metal has maintained its purchasing power for long periods of time, unlike all the fiat paper currencies that have been introduced over the years, reports Michael Roney, of Forbes. The first gold coins appeared in Lydia as early as the 6th century BC. C. The ancient kingdom of Anatolia recognized other vital properties of gold as a suitable material for the manufacture of coins.
It is malleable enough to be easily worked with, wear-resistant and virtually indestructible. Interest rates, which are currently centrally planned by the Federal Reserve, cannot be imposed on a gold monetary standard, since owners may ultimately refuse to lend their gold. At the end of the 19th century, many of the world's paper currencies were linked to gold at a fixed price per ounce according to an international monetary system known as the gold standard. This was the case of the Byzantine Empire, whose solid gold coin contained an immutable amount of gold for more than 700 years.
Some experienced gold holders prefer to limit their exposure to global instability and instead choose to safeguard their wealth with cash and gold reserves. In neighboring Egypt, the leading producer of gold in the ancient period, gold was the preferred high-value currency. But why is gold so suited to being money? These are our six main reasons why we believe that gold is the best currency and why dollars and bitcoin aren't close.