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In our daily lives, we constantly use fiat money, both physical and digital, as a medium of exchange or to purchase products and services. However, historically, our ancestors have used a barter system or commodity money for a long time. In short, commodity money is an item with intrinsic value that can be used as a medium of exchange, such as crude oil, rice, wheat, silver, coffee, chocolate, salt, cryptocurrencies, etc.
Some of the advantages of commodity money over fiat money include lower inflation risk, the potential for drastic price increases, and freedom from government regulations. However, despite these advantages, there are also many disadvantages. So, in your opinion, what are the disadvantages of commodity money?
Some of the advantages of commodity money over fiat money include lower inflation risk, the potential for drastic price increases, and freedom from government regulations. However, despite these advantages, there are also many disadvantages. So, in your opinion, what are the disadvantages of commodity money?