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Bitcoin And Gold Energy Debate
Bitcoin News now admin /

And the answers remain the same…

Long before we had the Bitcoin energy debate, we had the gold resource cost debate. The contours were similar: the costs associated with gold refining and extraction were a waste; they were too great relative to a mere fiat standard in which notes could be printed for virtually nothing. Why bother with gold, impassive and unwavering in its supply dynamics, when you could have the cheap and highly configurable paper standard instead? The critique hinges on figures computed by economists finding extremely high resource costs associated with the gold standard. Infamously, in his 1951 essay “Commodity-Reserve Currency,” Milton Friedman criticizes the gold standard on these grounds, calculating that 1.5% of GDP would have to be devoted to the production of gold under a full reserve standard, an estimate he revises up to 2.5% in 1960.