Goldbacks are beautiful and durable and are both easily spendable and a long term store of value. Unlike paper fiat currencies, Goldbacks are made of 24K gold, which preserves their value against the ravages of inflation.
Unlike traditional coins, Goldbacksare bendable and slide easily into your wallet, and contain small, precise weights of 24 karat gold laminated between thin protective sheets of plastic. Goldbacks have all the advantages of gold, because they are made of gold: Goldbacks hold their value while paper money declines in purchasing power, usually gradually but sometimes, as during an economic crisis, rather suddenly.
Using Goldbacks is also a completely private and is independent of the existence of any functioning electronic systems or digital networks. With Goldbacks in your wallet, you can buy things even if the power goes out, or the internet is down, or your cellphone is out of range or its battery is dead, or if your bank or even the entire banking system is closed down.
Money is a commodity used in commerce as a medium of exchange to settle debts, and as a store of value over medium to long periods of time. Historically, money evolved in the barter marketplace to solve the “problem of coincidence of wants”. In a barter situation, you may have a surplus of something and want to exchange your surplus item for some other item you think you lack. So you go to market, knowing that there may be others there with the thing you want, who might want what you have. You search throughout the marketplace, looking for someone who wants what you have to offer, and also has what you happen to desire. If you find that other person, and the two of you can agree on the terms of the exchange, the exchange takes place and both you and your trading partner (your “counterparty”) go away happy. Both of you now consider yourself better off — richer — than you were before the trade took place. This is how wealth is created and distributed throughout a society. These voluntary exchanges, repeated countless times between countless people, are how a society grows wealthier with time.
If you do not find a “counterparty”, then your search is fruitless, and you leave the marketplace still in possession of your surplus item, and lacking what you came to market to obtain. You did not coincidentally find someone who had what you wanted, and who wanted what you had to offer.
What is money, then? As stated above, it is a commodity, but a commodity with a special property: It is the commodity that most people in the marketplace will be willing to accept in trade for whatever they happen to bring to offer in the marketplace. This realization that there is one commodity that most people will accept in trade, comes about naturally as people engage in repeated exchanges, and notice what most other people ask for in trade. The discovery of this one commodity solves the problem of the “coincidence of wants” described above. You can go to market with whatever you have to offer other people, knowing that they will have some of the universally accepted commodity to offer you in trade. You are willing to accept this commodity simply because you know that, it being the most universally accepted commodity, you will be able to offer it in trade for what you want to buy, even if you have to go to a different person in the marketplace or even go to different market on a different day. You can expand your trading activity across a wider range of places and times, by accepting and offering that special commodity in trade. When that special commodity is formed into standard recognizable units of quantity, it becomes money. Historically, the special commodity has been one or a combination of three metals: Copper, Silver, and Gold. These metals make good money because of their inherent value as commodities, and because of their physical properties: They are scarce bot not too rare, they are useful for making things and therefore desirable to have, they are uniform in nature (one lump is like any other lump), they easily formed into convenient shapes, and they are stable and long lasting and non-toxic.
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