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Old October 19 2012, 04:28 AM   #15
Pavonis
Commodore
 
Re: Why can't Latinum be replicated?

Zombie Redshirt wrote: View Post
Well probably the very nature of latinum not being able to be replicated is what makes it valuable. If it was easily reproduced, it wouldn't make a viable currency to say the least.
I don't see why latinum would be especially valuable as a currency just because it supposedly can't be replicated. If latinum is not produced via replication, it's either being mined or manufactured. Either way, the value of latinum would be influenced by the quantity of latinum circulating. If latinum miners hit a rich deposit, for instance, then the value of the latinum circulating would go down just as if the same amount of latinum had been replicated and mixed into the circulating currency.

Perhaps the Great Monetary Collapse that hit Fereginar back in the day was the result of too much fresh latinum being injected into the Ferengi economy. Perhaps this economic disaster spurred the Ferengi to tightly regulate the amount of GPL in the economy to prevent rampant inflation. Rather than making latinum special by claiming it is "unreplicable", it is merely another fiat currency with strict regulations on replication.
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