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28 votes
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If Bitcoin becomes a globally accepted store of value, would it be liable to the same problems that mired the gold standard?

It would not just be plagued by the same problems it would create some new ones. Following the Weber (2016) who actually written research exploring exactly the question that you are asking here: The ...
1muflon1's user avatar
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9 votes

If Bitcoin becomes a globally accepted store of value, would it be liable to the same problems that mired the gold standard?

If someday this "bitcoin standard" does come to fruition, would it be susceptible to the problems that plagued the gold standard? A bitcoin standard implies that all major countries have ...
Brian Romanchuk's user avatar
7 votes

If Bitcoin becomes a globally accepted store of value, would it be liable to the same problems that mired the gold standard?

The only real advantage of "bitcoin standard" over gold standard is that bitcoin standard wouldn't drive gold prices up, thus depriving of it industries which need gold as a raw material. ...
Dmitry Grigoryev's user avatar
4 votes

Under the gold standard, how did the redemption of gold work in practice?

It depended on the year and if a banking suspension was in effect in the town. In 1834 it was absolutely true that you could walk up to a bank and demand one ounce of gold or in some time periods ...
Dave Harris's user avatar
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4 votes

What does the price of bitcoin per ounce of gold tell us?

It's BTC per Oz gold which shows how many btc you need to pay for 1oz. To compute this, you need to know the price (and both are quoted in USD). It still tells you a lot about the purchasing power. A ...
Alex's user avatar
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3 votes

What does the price of bitcoin per ounce of gold tell us?

I am not sure what the chart intends to show. In any case, the series in question is how many BTC you need to pay for one ounce of gold. The scale is logarithmic by the way. If you overlay the inverse ...
AKdemy's user avatar
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3 votes

Under The Gold Standard, was a country's money supply literally restricted by physical gold stores?

My (possibly incorrect) understanding is that, under a true gold standard, there literally needs to be gold, and that paper money couldn't be issued if there wasn't the physical gold stored up ...
Michael Gmeiner's user avatar
3 votes
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Was the gold standard a monetary union?

tl;dr: That quote refers to conditions for currency area/monetary union to work optimally. Even sub-optimal monetary union can exist. Furthermore, the gold standard existed in era of relative ...
1muflon1's user avatar
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3 votes
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Why does the gold standard require countries to keep exchange rates fixed?

This is required just due to the simple definition of what gold standard is. For a monetary arrangement to qualify as gold standard money has to be convertible into gold. Hence central bank or some ...
1muflon1's user avatar
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2 votes

Can setting bank's reserve requirement ratio in 100% simulate gold standard?

Examine this statement: If you want a gold standard, it's easier to set bank's reserve requirement to 100%. The only sense in which this is true is that it eliminates fractional reserve lending. ...
Brian Romanchuk's user avatar
2 votes
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Why was the price of gold lower when gold confiscation act was issued but raised afterwards?

Answer to Q1: Wouldn't the effect on deflation be the same if they fixed the price of gold at 35$ in the beginning? Yes it should. The value of currency under gold standard is given by the price of ...
1muflon1's user avatar
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2 votes
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Bretton Woods vs Gold Standard

It doesn't seem to me that there were any substantive differences between the Bretton Woods regime and the gold standard, as seen in the early 1970s Note that most of what I'm about to write is ...
Kent Shikama's user avatar
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2 votes

Under The Gold Standard, was a country's money supply literally restricted by physical gold stores?

The Rise and Fall of the Gold Standard in the United States by George Selgin https://www.cato.org/sites/cato.org/files/pubs/pdf/pa729_web.pdf In a genuine gold standard, the basic monetary unit is a ...
SystemTheory's user avatar
2 votes
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Is Steve Forbes factually correct when he says that all of our economics problems are made worse by leaving the gold standard?

It is not controversial to state that inflation was lower under gold standard. Under gold standard quantity of money in economy is strictly limited by amount of gold, and money supply can only grow as ...
1muflon1's user avatar
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1 vote

Could Foreign Exchange rates fluctuate under a Gold Standard system?

Under gold standard any change to the exchange rate can only happen when the conditions under the which the currency can be converted to gold change. For example, if central bank would change the ...
WilliamT's user avatar
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1 vote
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Is the gold standard tenable for a "high-tech" economy?

But as for the concerns of that official, would not gold just go up in value as necessary to make up for the growth in the value of a country's economy? It would. Virtually all mainstream economic ...
1muflon1's user avatar
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1 vote

Gold Standard: Settling Up -- how were large transactions handled between companies?

Suppose that Alice buys a house from Bob for a price of 200 troy ounces of gold (which is about average for the present-day US), and assume that she is able to make a single lump-sum payment. There ...
dan04's user avatar
  • 111
1 vote
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What were the problems with the gold standard?

There are several problems with gold standard: Having more than 1 country using a gold standard is economic equivalent of being in monetary/currency union. In fact European Monetary Union is often in ...
1muflon1's user avatar
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1 vote

If Bitcoin becomes a globally accepted store of value, would it be liable to the same problems that mired the gold standard?

Gold standard did not have any real problems, so Bitcoin would not have any real problems. Issue/problem with Bitcoin is not that it is bad, issue/problem is that it is good. Governments like power, ...
NoSenseEtAl's user avatar
1 vote
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Is It Possible for a Country to have a Gold Standard without a Fixed Price of Gold?

(1) Is it possible to have a gold standard without a fixed price of gold? No, with some provisions. First, I presume here we are talking about the price of gold in terms of currency not its relative ...
1muflon1's user avatar
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1 vote
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Questions about the gold standard and exchange rates

I would interpret the “Gold Standard” as being all (major) countries each pegging their currency to gold, or at least to a currency pegged to gold (e.g., the U.S. dollar in the Bretton Woods system). ...
Brian Romanchuk's user avatar
1 vote
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Who is Jacob? And where did he say this?

As we discussed in the comments, in William Jacob's An Historical Inquiry Into the Production, and Consumption of the Precious Metals, on page 101 it says It is probable that in all ages those ...
Giskard's user avatar
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