Gold and Silver Coins in the Middle Ages: A Comparison with Bitcoin and Monero
Precious metals like gold and silver have always been valuable due to their rarity and durability. They are well-suited as a medium of exchange and store of value. However, verifying their authenticity is not always easy. Gold can be adulterated with cheaper metals, resulting in a lower amount of genuine gold. In contrast, Bitcoin is protected from such manipulation through its decentralized system and the motto "don't trust, verify".
To combat the problem of metal manipulation in the Middle Ages, coins were minted with guarantees of authenticity under threat of severe punishment. Melting down coins was also prohibited to protect the purity of the metals. Through these measures, people could trust in the purity of the metals, but it required a ruler to enforce these rules.
Gold coins typically had a consistent gold content, but this could be altered by minters or rulers themselves. With a "coin reform" or "coin exchange", the minting process was changed or the metal content adjusted. Often, one-tenth of the wealth was withheld when exchanging old coins for new ones - ten old coins were exchanged for nine new ones. This was a tax on people's wealth and was not very popular.
In comparison, Bitcoin cannot prevent such taxation. One could divide Bitcoin into legitimate and illegitimate categories, similar to how certain gold coins were accepted on markets in the Middle Ages. A "Bitcoin exchange" could be implemented where only verified Bitcoins are considered valid after withholding one-tenth of the wealth.
Monero, on the other hand, prevents such practices through its fungibility.
pcre / Pcre
npub1kh…jasza
2025-02-16 15:37:00
Author Public Key
npub1khdjc9hpqd7we68ukn59j9er5m0ujl0vwmduufg2sjzwcftnqgcqajaszaPublished at
2025-02-16 15:37:00Event JSON
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"content": "Gold and Silver Coins in the Middle Ages: A Comparison with Bitcoin and Monero\n\nPrecious metals like gold and silver have always been valuable due to their rarity and durability. They are well-suited as a medium of exchange and store of value. However, verifying their authenticity is not always easy. Gold can be adulterated with cheaper metals, resulting in a lower amount of genuine gold. In contrast, Bitcoin is protected from such manipulation through its decentralized system and the motto \"don't trust, verify\".\n\nTo combat the problem of metal manipulation in the Middle Ages, coins were minted with guarantees of authenticity under threat of severe punishment. Melting down coins was also prohibited to protect the purity of the metals. Through these measures, people could trust in the purity of the metals, but it required a ruler to enforce these rules.\n\nGold coins typically had a consistent gold content, but this could be altered by minters or rulers themselves. With a \"coin reform\" or \"coin exchange\", the minting process was changed or the metal content adjusted. Often, one-tenth of the wealth was withheld when exchanging old coins for new ones - ten old coins were exchanged for nine new ones. This was a tax on people's wealth and was not very popular.\n\nIn comparison, Bitcoin cannot prevent such taxation. One could divide Bitcoin into legitimate and illegitimate categories, similar to how certain gold coins were accepted on markets in the Middle Ages. A \"Bitcoin exchange\" could be implemented where only verified Bitcoins are considered valid after withholding one-tenth of the wealth.\n\nMonero, on the other hand, prevents such practices through its fungibility.",
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