Introduction

If were to effectively scrutinize the inefficiencies of traditional finance, we would have to look further beyond what we consider to be the key turning points in modern-day economics. In fact, we would have to look back hundreds of years.

The most stable and concrete store of value that we’ve ever had in history is undoubtedly Gold. Gold set a standard for the store of value because of a few qualities that it exhibited. It was unique, scarce in supply, and desirable.

Gold had a lot of use cases, the most important of which was as jewelry. This meant that Gold was almost unanimously accepted as a viable store of value. Additionally, a good store of value should be limited in supply. When the supply of an asset is inflated, the value suffers a downtrend. With Gold, the supply is always controlled and one can accurately find how much Gold is in a country’s reserves.

This unanimous acceptance of Gold as a store of value and currency of trade is evident when you look at how we used Gold to buy and sell items before we had paper currency.