16
votes
What Are the Pitfalls of Using Diamonds as Currency?
Hard to Standardize
Gold can be cut into standard weight chunks known as coins. These can be given stamped shapes to minimize the chance of imposture. Furthermore, gold is gold. Some gold is not ...
- 27.1k
10
votes
What Are the Pitfalls of Using Diamonds as Currency?
Benefit vs Cost
Any form of currency can be destroyed, stolen, lost, counterfeited, etc. Diamonds are no exception. Any form of currency, in order to be useful, has to be plentiful enough to smooth ...
- 39.5k
9
votes
What Are the Pitfalls of Using Diamonds as Currency?
There are two major problems, both pertaining to counterfeit money.
An average person cannot tell the difference between a real diamond and a zircon crystal. You need a professional to tell if the ...
- 3,203
8
votes
What Are the Pitfalls of Using Diamonds as Currency?
They burn up, perhaps too easily
There was an experiment when a scientist (IIRC French) decided to check what would happen if a diamond would be put into the fire. Poof went the diamond. Diamonds are ...
- 5,177
5
votes
What Are the Pitfalls of Using Diamonds as Currency?
Use a substance that can only be made by alchemy
Gold can be counterfeited by alchemists, but diamond can be counterfeited by anyone. Among metals, gold has a color, density, and hardness that makes ...
- 86.9k
5
votes
Accepted
The miraculous substance of carrangan: can it exist, and what does it change about its planet of origin?
Quoting from a comment above: "The substance is viewed as “miraculous” by offworlders for its abundance and usefulness as food and adhesive..."
You asked how this would affect the ecosystem. ...
- 3,203
3
votes
Realistically, how much redundancy needs to be added to crucial industries?
I think we need to separate redundancy from resiliency. Having a second phone gives you redundancy, but if both models break just by looking at them you do not have resiliency. Resiliency can reduce ...
- 1,221
1
vote
What Are the Pitfalls of Using Diamonds as Currency?
Working from @nosajimiki's answer, create an alchemical process that produces a substance that is alchemically inert, doesn't occur in nature, is suitably resilient, and is unmistakable. Some sort of ...
- 1,888
1
vote
What Are the Pitfalls of Using Diamonds as Currency?
An economy of any scale running purely on one commodity is as impractical as one running purely on ad hoc barter.
Using a rare material like gold is most directly useful for large transactions, where ...
- 459
1
vote
What Are the Pitfalls of Using Diamonds as Currency?
The issues with all "hard money":
Limited supplies impose inflationary pressures on a growing economy.
Discoveries of large new deposits can cause deflation when speculators short the ...
- 254
1
vote
What Are the Pitfalls of Using Diamonds as Currency?
There are no problems with it! There have to be enough around that the economy isn't under constant threat of "money" running out, but they also probably need to be controlled by the ...
- 111
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