The concept of gems as currency makes no sense to me

[Kaitlynne 110]

In 3x11 we see a clear view of how gems are used as currency in ponyville. You can donate them to charity, use them to buy goods, decorate your clothes with them and some species eat them. To me it just doesn’t make sense. There are creatures in Equestria that consume money. Imagine if there was an animal on Earth that ate money, that would be the most annoying animal ever! Also if you can use them to buy stuff why doesn’t everyone go into the gem cave and become a millionaire? Also you can use them to decorate things. Imagine decorating human clothes with money. So confusing, hahahah!

[They call me Loyalty 1,941]

The confusion lies in the comparison of an amazing natural resource such as crystals and gems with the collective imaginary concept of currency.

[Northern Star 1,023]

Animal that eats money? That's a horse.

Clothes decorated with money is an interesting rabbit hole for what it's worth, from the...model who wore a dress completely made of legal US currency to the company that makes clothes out of decommissioned UK notes, that was more interesting than I thought. 

[Kaitlynne 110]

1 hour ago, TheGleaner said:

Animal that eats money? That's a horse.

Wow that’s so true! Still doesn’t explain why people aren’t flocking to the gem mine though.

Edited February 26, 2022 by Kaitlynne

[Brony Number 42 9,899]

Money needs to be based on something rare or a valuable resource, like gold or oil. Gems might be rare and useful. The issue is the exchange rate. If it was so easy to find a gem and buy a sandwich, then nopony would ever sell sandwiches for a living. Money is a way of comparing value of different things. I think you are right in that gems are too easy to obtain.

[Fluttershutter 2,114]

I might be wrong but I don't think they were actually used as currency. They're only used as donations and gifts. The value of gems is much more complicated that precious metals where you simply weigh them. But in Equestria they're much more common and they come out of the ground polished and sparkling so they're probably not that much more valuable than quartz or something here.

Moths can actually eat paper money if it's left laying around in a bad place for a long time. 

[ExplosionMare 18,007]

Would have been interesting if the show touched on how much gems were worth. In “Rarity Takes Manehattan”, she tips the bell hop with a gem and he sees it as a very generous tip. In other cases, like the ones mentioned in the OP, gems are seen as a moderate worth. Perhaps size, shape, and shininess play a factor in how much a gem is truly worth. There must be some out there more rare than others. That also begs the question, how much are the gems worth at the jewelry shop in Ponyville? Are those gems being overpriced?

[Will Guide 21,325]

No, if you pay attention it's actually bits actual coins being used as the main currency not gems. the only time Gem currency was to pay for Spike services to pet sit in that one episode. Rarity even let Spike eat some of the gems because they had such a surplus go out looking for gems for their dresses in an early season 1 episode. Applejack imagine making money in an early season one episode to help fix things up around the farm it's literally coins called bits not gem stones

QDL: Gems may be used as occasional currency but the real main currency is metal coins called bits

 

[Will Guide 21,325]

6 hours ago, Kaitlynne said:

Imagine if there was an animal on Earth that ate money, that would be the most annoying animal ever!

That would be a goat

[Kaitlynne 110]

3 hours ago, Will Guide said:

Sarebbe una capra

I also think it’s a little different. Because the ponies let Spike eat the gems and don’t try to stop him, Twilight even encourages him. Nobody in their right mind would let a goat or a horse eat tangible money.

[Props Valroa 25,977]

It doesn't make sense to me either, that one would take something so beautiful and natural and corrupt it's presence by making it a currency. 

[Will Guide 21,325]

It's a freaking magical world it doesn't have to follow our rules of physics or how we see the gems as only jewelry

[AlbaTross 1,581]

4 hours ago, ExplosionMare said:

Would have been interesting if the show touched on how much gems were worth. In “Rarity Takes Manehattan”, she tips the bell hop with a gem and he sees it as a very generous tip. In other cases, like the ones mentioned in the OP, gems are seen as a moderate worth. Perhaps size, shape, and shininess play a factor in how much a gem is truly worth. There must be some out there more rare than others. That also begs the question, how much are the gems worth at the jewelry shop in Ponyville? Are those gems being overpriced?

"Boulder thinks they're too stuck up."  Sorry, couldn't resist.  

My take is that gems aren't currency per se, but they have a general value in currency and can therefore be used in a similar capacity for things like tips and other small transactions.  

[Misty Shadow 7,066]

Ever played a video game?  The Legend of Zelda has always used Rupees, items that look like gems, as currency, and a game I'm playing right now, Yu-Gi-Oh! Master Duel, also uses gems as currency. 

Before you cry, "THAT'S JUST VIDEO GAME LOGIC!", hold that thought, no. It's really just fantasy world logic based on real world logic that another member already pointed out. Gems are rare and valuable, and for all of time, people have been trading rare and valuable goods for things that interest them. 

[Kaitlynne 110]

1 hour ago, Will Guide said:

It's a freaking magical world it doesn't have to follow our rules of physics or how we see the gems as only jewelry

Haha fair enough. I guess I shouldn’t try to nitpick logic in a show intended for little kids 

[Goat-kun 2,496]

It's barter, bruh. Gems are truly, truly, truly outrageous.

[Tom Gallagher 33,521]

That is certainly a strange currency.

[Evil Pink One 12,953]

Gems are as common as a housefly ... So making that as currency.... No wonder why it's easy to live there.....

Edited February 27, 2022 by Kujamih

[EpicEnergy 22,066]

Mostly any material can be used for currency. Look at currencies all over the world in real life, or throughout history, as some of them are made of different materials than dollars.

[Pentium100 2,056]

You can use anything (gold, shells, oil, water, bitcoin) as currency, as long as people agree on the value of that currency.

However, to be a good currency, it needs to fit some criteria, for example, it cannot be too valuable or too cheap (imagine trying to buy a box of matches with gold - you would need such a tiny amount, it would not be practical, but at the same time, you would not want to carry several tons of money to a restaurant), it should be relatively stable over time and the rate of its creation should also be relatively stable. 

[Skylight Scintillate 1,849]

Well many ancient human civilizations used coins made of precious metals, so I don't think that gems would be that different. For example, ancient Rome used a combination of gold, silver, and bronze coins. In addition, I think the main currency is bits in Equestria.

Edited March 6, 2022 by Ocean Wavedream

[Will Guide 21,325]

1 hour ago, Ocean Wavedream said:

Well many ancient human civilizations used coins made of precious metals, so I don't think that gems would be that different. In addition, I think the main currency is bits in Equestria.

That's what I said

[North Star 4,468]

From the show I think it's pretty clear that fabulous ponies are particularly gem-infatuated. 

If gems are common currency that just means that Equestria is much more fabulous than the earth we inhabit and let's face it, Equestria is pretty fabulous :3 I mean look at their capital!