History shows it is not possible to insulate yourself from the consequences of others holding money that is harder than yours. — Saifedean Ammous
When costliness for money creation becomes forgeable, money loses scarcity (monetary inflation appears). Old monetary systems succumbed after costliness disappeared, from glass beads in Africa to seashells in many places around the world.
An illustrative case is the Rai Money:
In 1871, David O'Keefe, an Irish-American captain who had been shipwrecked near Yap Island in Micronesia, discovered the amazing money used by their inhabitants: “Rai Stones” made out of limestone.
Yap was formed in a geologically unusual way, which resulted in it lacking limestone, a stone common elsewhere. Obtained from islands many hundreds of km away, on voyages where about half the men were lost, limestone was unforgeably costly on Yap.
That was until Eurasian tech was brought in, which allowed to quarry the stones and mass transport them to Yap. The Rai collectibles were inflated, including in their size.
The enormous stones could be transferred by a word-of-mouth “ledger” system, where the physical location of stones did not change.
The system was not trust-minimized nor was it censorship-resistant, so it was easily abused.
German colonizers effectively destroyed the post-O’Keefe monster stones value by painting crosses on the stones that were going to be confiscated.