The Bitcoin Energy Debate Is A Modern Repeat Of The Debate About The Cost Of Van De Gold’s Resources

The debate over the cost of gold resources is crucial to understanding the current fixation of bitcoin energy costs.
And the answers remain the same…Long before we started discussions about Bitcoin energy, we had a discussion about the cost of gold resources. The contours were similar: the costs associated with gold processing and mining were wasted; they were too high compared to a simple Fiat standard, where banknotes could be printed for almost nothing. Why worry about gold remaining unchanged and delivery dynamics unchanged if you can have a cheap and easily customizable paper standard instead? Criticism hinges on figures calculated by economists who have discovered the extremely high cost of resources associated with the gold standard. In his 1951 article “commodity reserve currency”, Milton Friedman criticizes the gold standard on these grounds, estimating that 1.5% of GDP should be spent on the production of gold at the full reserve standard.
Allan Meltzer, writing in Cato magazine in 1999, repeats Friedman’s analysis and, while acknowledging that Friedman’s estimates are shadowy, nevertheless concludes that “the value of a full commodity standard remains high.”
As George Selgin points out, today’s economists argue that the gold standard is “more expensive” than Fiat. Selgin cites the example of Starr, who argued in 2013 that “using paper or trustee money instead of commodity money is resource saving.””The composition of the critics, though somewhat diminished, is a reminder that the gold standard “will cost the real economy,”with the addition of Matt Iglesias,” the gold held in bank vaults is gold that is inaccessible for industrial or decorative use, ” he added.
According to leading economists, the relatively low cost of printing banknotes, the paper (or the digital edition of the liabilities of the Federal Reserve), considering a system based on gold only economically viable, but also economically feasible.

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