26-11-2018, 06:05 PM
(05-11-2018, 12:48 PM)specuvestor Wrote: [ -> ]If you bring USD into a department store or even shops, they can check it with machines or under the light. Try doing that with gold nuggets. The expertise of verifying gold I think has been long lost in common folks.
True, but what this Rotbart meant is, once the bullion's quality is certified, gold is accepted everywhere.
On the contrary, a verified $ banknote is not accepted everywhere.
(05-11-2018, 12:48 PM)specuvestor Wrote: [ -> ]In modern times gold is useful only in extreme dire straits or circumstances like war but the huge bid/ask spread is still there. Last I heard of people using gold as a currency is Vietnam war. Not even Iraq or Afghan war do I hear gold widely used as a currency but more as a "perceived" store of value.
True, as far as a widespread use of gold as a means of payment go.
Clearly precious metals cannot be used directly as a means of payment.
Imagine sending a gold panda to amazon in order to acquire new furniture...
Gold could be used as means of payment indirectly, e.g. through gold certificates, i.e. paper or electronical documents representing a title of ownership over a certain quantity of gold.
The problem here is these certificates can be falsified or hacked, the bars they should represent are not there or are encumbered etc.
That's where blockchain and gold backed blockchain currencies come into play.
Bet there is still the problem of Gresham's Law.
That's where blockchain projects like Kinesis come into play.