When the Spanish conquistadors invaded Mexico and Central and South America, they brought home a great quantity of gold. The amount of gold they brought back home was enough to cause inflation back home.
Yes, if enough gold were found that made it as rare as dirt, it would lose the value it now has, in the same way that fiat currencies are losing their values.
Topic: Hypothetically, if a large enough gold deposit was found, could it cause economi - page 3. (Read 2706 times)
May 02, 2014, 06:18:58 PM
May 02, 2014, 03:31:06 PM
The current world economy is, sadly, not based on anything material.
There was a McDuck comic where he found more gold than existed in the rest of the world. Ancient incan treasure or whatever. His reaction was panic. Nobody must ever know about it or all his gold would become worthless.
This is why bitcoin is better than gold. The supply is known and cannot be changed beyond what is already predetermined. Especially since real gold is traded several times over the actual amounts that exist.
There was a McDuck comic where he found more gold than existed in the rest of the world. Ancient incan treasure or whatever. His reaction was panic. Nobody must ever know about it or all his gold would become worthless.
This is why bitcoin is better than gold. The supply is known and cannot be changed beyond what is already predetermined. Especially since real gold is traded several times over the actual amounts that exist.
May 02, 2014, 03:03:15 PM
Alright, let's say that I find a gold mine large enough that if mined and refined, all the gold in it were enough to make gold about as rare as dirt.
First, what effect would this have on the economy? I heard somewhere that the wealth of nations is based on how much gold each country has.
Second, what if I could mine and sell it, like, really super fast without anyone knowing? Could I hypothetically become rich before anyone realized what was happening?
First, what effect would this have on the economy? I heard somewhere that the wealth of nations is based on how much gold each country has.
Second, what if I could mine and sell it, like, really super fast without anyone knowing? Could I hypothetically become rich before anyone realized what was happening?
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