Why Gold System Comes Back

xuanling11
Coinmonks
Published in
3 min readAug 10, 2022

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Photo by Michael Dziedzic on Unsplash

The modern financial system hates the gold system, which makes gold a fiat currency. Because they claimed the gold system created too many unnecessary financial crises. But the real problem is the corrupted system was designed to abandon the gold standard.

The Newton’s System

Many people may not be familiar with the 17th-century of living style at all. Back in the 17th century, ideology collided between theology and science.

Theology told the earth is the center of the universe, but science told the other way.

In 1717, Britain moved from the silver standard to the gold standard with the help of Newton’s new minting method of precisely coin-making technology.

Silver Standard

Silver is more abundant than gold. Therefore, silver is a perfect candidate for fiat currency in the ancient world because it is lighter weight to carry and much more available globally. But similar to gold, there is a limitation in the supply. Because of the supply restriction, the government wants more control of the currency, causing its economy to inflate and deflate. It prohibits nations from creating credits out of thin air. Therefore, the financial system has its integrity.

Gold Standard

Like silver, the gold standard has its system integrity to prevent nations from inflating its economy. But the addition to its integrity, gold cannot be counterfeit like silver. It makes gold a perfect fiat system with complete integrity.

A trust system

The current fiat system claims it is a trust-based system. But to be able to demand trust, the system does not offer its integrity. Trust works from both sides. If there is no integrity in the design, users will lose their faith in the system to choose another. However, when you only have one option, you have no option but to stick with one choice.

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