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rjs's avatar

"Gold and other precious metals are also not money. We know this because they have a price in money."

AUD has a price in USD (and vice versa). Does that make Australian dollars (or heaven forbid US dollars) not real money?

In so far as gold is still held by central banks as reserve currency and is used as part of inter-central bank payments, then gold is still a type of money. A strange sort of money in that it is also a commodity, but money nonetheless.

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graham palmer's avatar

I haven’t seen Olson’s film, but I’d agree with CM on the oddity of crypto. What’s missing in the crypto story is the lack of any anchor between Bitcoin’s symbolic value and the real world.

Money may be a social construct, but it works because its nominal value is anchored to tangible phenomena. Historically, that anchor has taken different forms — from the taxing power of states, to the way government wages set a value on labour. These links give money credibility.

The history of this can be traced to archaic Greece, where shifts in property rights turned land from a subsistence resource into a legally recognised, tradeable asset. That change allowed land to back credit contracts, giving abstract financial claims a concrete base in productive assets. Greek coins continued this by providing a state-backed symbol of value that could circulate widely.

Crypto, by contrast, floats free of any anchor — which is part of why it seems so strange and can seemingly take on any 'value'. I sometimes wonder if the rising exchange rate is driven by the need for scam victims to buy BTC, while relatively little ever gets cashed back out.

P.S. I write about this here: https://doi.org/10.1080/13563467.2025.2453574

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