Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

What was the problem with using wheat as commodity currency?

Sagot :

jcherry99

Answer:

Explanation:

It's not like this was never done before. It was.

Compare it to gold however.

1. The Fed can't manufacture gold.

2. Wheat would have a crop each year that varies. So there would be no stability.

3. Gold does not oxidize nor does it react (hardly) with anything else. If you have an ounce of gold today, it will be an ounce tomorrow. In time, wheat will spoil.

4. It is not easily mined, see point 1. Wheat is easily grown to produce more.

5. It does not burn as wheat might.

6. Wheat cannot be made into smaller amounts like coins the way gold can.

7. It does not disappear into binary numbers the way bitcoin would.  (Of course wheat wouldn't either).

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.