In that kind of world… what happens to gold?
Well, I can assume that gold will not depreciate to zero, because this metal has many real applications for humanity, which means there will be demand for this asset. Perhaps gold will cease to be used as a reserve asset in the future, but as a resource asset, like oil or timber, it will certainly be. And therefore, it will cost N-th amount of money.
It seems to me that they will not abandon gold so quickly because "gold" is in the hands of the powers that be and these guys will not allow gold to be replaced by a bitcoin so easily.
Yeah, I agree there is no way gold goes to zero. Aside from being used as a country reserve, gold is still valuable on its own. People still want it for jewelry, it’s used in tech stuff like electronics and so many other things.. So, there is always going to be real demand for it.
And you’re right, gold is still in the hands of powerful people and institutions. It has been part of the global system for centuries. Those who hold the most influence won’t just sit back and let it be replaced overnight by something like Bitcoin. Even if the world shifts more towards digital, gold will still have its place, maybe less as a monetary reserve and more as a physical resource, but definitely not worthless….