Question

What was the problem with using wheat as commodity currency?

Answer 1

Answer:

Explanation:

It's not like this was never done before. It was.

Compare it to gold however.

1. The Fed can't manufacture gold.

2. Wheat would have a crop each year that varies. So there would be no stability.

3. Gold does not oxidize nor does it react (hardly) with anything else. If you have an ounce of gold today, it will be an ounce tomorrow. In time, wheat will spoil.

4. It is not easily mined, see point 1. Wheat is easily grown to produce more.

5. It does not burn as wheat might.

6. Wheat cannot be made into smaller amounts like coins the way gold can.

7. It does not disappear into binary numbers the way bitcoin would.  (Of course wheat wouldn't either).