New answers tagged economy
0
votes
What Are the Pitfalls of Using Diamonds as Currency?
There are solutions to your problems.
First problem lies in glass or similar looking gems. They can be tested for hardness. Diamond is very very hard. Widely available corundum test pieces could be ...
- 7,532
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
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
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 ...
- 87k
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 ...
- 3,241
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
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 ...
- 39.4k
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 ...
- 5,262
Top 50 recent answers are included