Re:Hackers nab $500k as Enigma is compromised weeks before i...
by dragonwriter on Tuesday August 22, 2017 @01:46PM
(#15074751)
> Gold has been used as a currency for thousands of years.
But not supporting a robust market economy until it (and other metals) were reduced primarily to accounting units for many transactions, so the real “currency” was, in substantial parts, debt instruments, not actual gold. I mean, this is true even in emergent pre-capitalist market economies, which were fueled by (and fueled, in a positive feedback loop) the development of banking.
There is a huge difference between a commodity currency like gold and a commodity-backed currency like gold-denominated debt instruments.
But not supporting a robust market economy until it (and other metals) were reduced primarily to accounting units for many transactions, so the real “currency” was, in substantial parts, debt instruments, not actual gold. I mean, this is true even in emergent pre-capitalist market economies, which were fueled by (and fueled, in a positive feedback loop) the development of banking.
There is a huge difference between a commodity currency like gold and a commodity-backed currency like gold-denominated debt instruments.