228 sats \ 1 reply \ @Undisciplined 16 Nov 2023 \ parent \ on: Gold Will Be Physical Cash in a Hyperbitcoinized World bitcoin
I was thinking about what would replace cash in a world where fiat had been completely eradicated. In that world, if gold fills the void of cash, it would be difficult to have a gold transaction below about $5 of value. There are lots of individual items that cost less than that, so I was wondering whether silver would be used or if transactions would only occur at the values gold could accommodate.
What occurs to me as I write this, though, is that maybe it's just a sign that gold isn't what would replace cash. Silver might just be more suited to that purpose.
Ah, that's a different premise than I was entertaining. I see 0% liklihood of gold (or really, any metal) replacing fiat, for the same reasons we have fiat in the first place -- I've swallowed the hook on this "velocity mismatch" part of Lyn's "technological determinism" idea.
I can see a role for gold as a physical-bearer-asset hard money adjunct, but in that use case I can't see silver being relevant. It serves no additional purpose. I don't see significant numbers of hard money people caring that much about being able to spend $0.25 or whatever to go to the trouble.
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