If people don't understand stone age economics and why gold was seen as valuable even before modern electronics, oh boy... How do they make sense of more modern concepts? We often discuss a lack of education, especially in terms of science and technology. The situation regarding economics education is so dire most aren't even aware there is an issue.
Does that explain why gold has been used to make coins and ingots, held in large reserves by governments, etc.? Surely the value of gold is and has for most of human history been much higher than what would be expected if it were merely a nice metal to make pretty jewelry with.
> Does that explain why gold has been used to make coins and ingots
Over say, Iron?
Yes. Because iron rusts. An iron-coin does not last forever. Copper, Silver, and Gold are easier to take care of, but even old copper/silver coins tarnish and corrode away with time.
Gold does not. A gold coin made 100 years ago would be as brilliant today as it was back then... with minimal maintenance.
There's a _REASON_ why gold was chosen, all across the world, from MesoAmerica, to Europe, to Asia, as a unit of currency.
This is a disingenuous argument because you pretend like gold has no downsides. The major, and very real downside of gold is that it's costly to store. The risk of confiscation is high unless you protect yourself with weapons. (And, in that case, doesn't that make weapons more valuable?)
If that's your worry (and not that you shouldn't), consider that the risk of confiscation of your bank balance or stock accounts is far higher given that those are merely entries in a database held by a third party.
>Jewellery is a store of value with additional attached utility.
we're in the bi-hourly crypto hate thread. the threshold for being useful is set to "is it necessary for basic survival?". "a store of value with additional attached utility" doesn't make the cut, and must be banned to atone for our carbon sins
My Nylon strap for my watch is pleasant and cheap. But the very material itself didn't exist before the 1930s IIRC.
If we're talking about materials that existed even in 2000BCE, gold is one of those metals that you could wear all the time, and never get a rash, allergic reaction, or otherwise get itchy.
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Glass isn't flexible or malleable. Even if we use fiberglass today, its a carcinogen and very bad for the human body. Certainly not a material you want to be wearing all the time.
Even Silver corrodes. Gold never corrodes. It's excessively stable, malleable, and perfect for art pieces.
Since Gold is excessively stable, there are no worries about rashes or itchiness if you wear it all day.
In an age before modern plastics, that is basically miraculous.