Asisreo
Patron Badass
To keep the post brief, I think gold should be used as an exchange of intangible experiences in a game rather than mechanical benefits like trading it in for magic items or XP.
The reason is that when players realize they can expend gold for concrete buffs to their character, they will hoard and only spend their gold on those buffs. But if they don't have that option, and (key point) they are aware that they can expend gold on fun intangible experiences, they will expend it there, increasing immersion and engagement with the world, as well as being a more fun experience having and spending gold.
For instance, rather than spending gold on buying a magic sword, they could go on a vacation to a mystical land where they recieve incite on their own character's magical affinity. Or something to that effect.
The reason is that when players realize they can expend gold for concrete buffs to their character, they will hoard and only spend their gold on those buffs. But if they don't have that option, and (key point) they are aware that they can expend gold on fun intangible experiences, they will expend it there, increasing immersion and engagement with the world, as well as being a more fun experience having and spending gold.
For instance, rather than spending gold on buying a magic sword, they could go on a vacation to a mystical land where they recieve incite on their own character's magical affinity. Or something to that effect.