Posted on March 2, 2010 at 15:24
Think of money as a substitute for gold.
Gold has a value because of its scarcity (if we overlook its aesthetic appeal, non degrading properties and certain technical advantages e.g. electrical conductivity).
If alchemists has been right, and you could make gold from common metals, then the value of gold would have fallen. It would no longer be a scarce, hard to win commodity.
Money only has a value because of this scarcity. An example, if a mars bar costs a… Continue