So,
here’s what’s surprising – ever thought about a world without physical
cash? It’s a concept that sounds far flung to many, but believe it or
not, we’re edging closer to it with every tap, every swipe,
and every digital transaction. Not many would think that the linchpin
of this brave new world could be as old as civilization itself – good
old gold!
Gold: An Everlasting Monetary Polaris
For
centuries, gold’s been doing a bang-up job maintaining its value; you
might even call it the star of value standards. Back in the day – we’re
talking pre-1800 here, folks – societies ran on the metallic clink of
gold and silver coins. Fast forward to the 1950s and we saw paper money,
but get this – its value was still linked to the looming grandeur of
gold. It’s like the eurozone today, where the euro is the big cheese of
value.
Could a Cashless Society Still Rely on Gold?
Imagine
a cashless society that operates around the principle of this golden
relic. If you’re wondering just how, it’s as simple as this – linking
the value of bank reserves directly to gold. Heck, they could also be
redeemable in gold bullion! And if that seems a bit too old school, we
could go the Bitcoin way with independent digital currencies — BitGold’s
already an industry pioneer with over a million users.
But here’s the catch – no matter where the gold is, or in what form, its value – or gold price –
remains unchanged. It’s like saying, no matter where you’re enjoying
grandma’s apple pie, in the kitchen or on the moon, it’s still as
delicious!
Why Ditching Physical Cash Isn’t Necessarily the Best Move
Now,
don’t get me wrong, I’m not advocating for a total wipeout of cash.
Deciding to do away with cash entirely might lead to some Orwellian
kerfuffle, with surveillance and control running amok. Large
transactions might still need that golden touch, if you really think
about it. And of course, we’d want a liquid market for gold bullion, not
just paper trading disconnected from the real deal.
The Immutability of Gold in History and Its Role in the Coming Age
Long
story short, gold’s been money for about 2,000 years — from 2800 B.C.
to 800 B.C. Paper money only really took off in Europe after 1850. But
some may say that paper money may face the same fate as coinage, as more
people go digital.
But with all the recent financial upheaval – negative interest rates, Brexit, the shrinking middle class – there’s still something stable and reliable about gold. Call me old fashioned, but I still vote for gold, just like George Bernard Shaw did back in 1928. After all, with everything going on, maybe soon we’ll be able to choose again. And who knows, maybe we’ll choose gold.