We know that the early money systems were based on bronze, and later switched to silver coins. In the process of the growth of the human population, the development of technology and the increase in international trade relations, the number of trade operations grew and over time, gold was added to the "silver standard", becoming the basis for ensuring monetary relations. Already in ancient states, it was gold that was used as money.
In the XIV-XV centuries, bimetallism was formed with a fixed exchange of silver for gold. But the exchange rate of metals often changed, in addition, the exchange rate had to be reviewed. However, the lack of a stable alternative prevented bimetallism from being abandoned. Later on, this led to the transition to paper bonds and coins made of bronze and copper.
The main reasons for choosing silver and gold as a means of payment:
The use of precious metals was unprofitable:
The development of progress provoked an alternative to bimetallic coins - the appearance of paper money solved many problems and became a convenient lever, while the money was provided with gold.
Backing gold was mainly stored:
Thus, the new money was a security bond, which gives its owner the right to claim. However, there were significant flaws that were ignored:
The reason for the abolition of the "gold standard" in 1971 is the discrepancy between the real purchasing power of the dollar and the declared gold parity
The unlinking of the currency to gold increased the number of negative points:
Now we have examined both the positive and negative aspects of securing the money supply with precious metals. But the history of the 20th century says only one thing - the gold standard is outdated and cannot be returned, since the conditions for this in the era of globalization are not possible to make all currencies in the world convertible into gold (otherwise international trade and investment will simply be impossible), and also not the ability to obtain accurate data on the amount of gold in funds and vaults around the world.
It seems logical that the “standard” for emission should be a constant known to everyone, at the same time easily measurable, with real value for everyone. In addition, the ideal condition would be the ability to track every, even the smallest element of this resource
All these characteristics are possessed by the earth:
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