Gold coins were first used by the Lydians as currency because Croessus, or his forebears, minted worthless yellow alloy into coins, with which he paid his mercenary army. These coins were the only commodity accepted as the form of tax remittance, which gave it value. The only "value" of Lydian coins derived from Lydian tax system. It is much the same with the modern world. The much maligned fiat is no different from gold coins, as their value derives from taxation and central government.

The type of currency, or means of tax remittence, can have far-reaching consequences for sociopolitical development. The Incan empire's currency, much like that of feudal Christendom, was that of labor-time. As such, even though the Incan empire rivaled and even surpassed Europe in centralization and autocracy, their empire was characterized by frugal use of existing resources, specialized regional production, and sustainable expansion. Similar sociocultural characteristics can be observed in feudal Christendom. The transition from labor-time remittence to specie remittence in Europe allowed for the credit expansion and inflationary pressures outlined above. It may be that non-perishable commodity used as wealth measure/tax remittence lies at the foundation of inflation, credit bubbles, and market "cycle."