Nov 202017
A Major Change To Our Monetary System If history is to repeat itself, then investors and savers should be on the lookout for a major change to our monetary system in the coming years. The choices today are Gold, U.S. Dollar (fiat currencies) or Cryptocurrency. Which One Is best to prepare for the future? The most important thing to ask when choosing is “whether or not Cryptocurrency, Fiat currency or physical gold will remain money. What is Money? When analyzing each asset as Money, there are seven characteristics to observe: durability, portability, divisibility, consistency, instant recognition, acceptability and intrinsic value; as well as three functions: unit of account, medium of exchange, and store of value. Precious Metals? Jordan Eliseo (Kitco) said in a report published Monday. “Precious metals are likely the best and, just as importantly, simplest means of protecting your wealth through the difficult market environment we all face in the years ahead. History shows that physical gold has no peer when it comes to protecting purchasing power over long time periods, and why it has been humankind’s preferred choice of money for millennia.” But is that true today? Gold clearly meets the first five characteristics of Money as well as the last one: In that it is intrinsically valuable – both as an display of wealth (think jewelry) and in some industrial applications.” Cryptocurrency? I’m sure that if you’re reading this article, you’re at least a little intrigued by the idea of cryptoassets and blockchain technology. Governments all over the world are scratching their heads at what to do about this new technology. It’s an uncharted area and has already given rise to one of the greatest criminal tools of all time. An amazing part of this technology though, is that everything is decentralized and happens through the Internet, so pretty much all that governments can do is criminalize the exchanging of these cryptoassets. However, any attempts to stop development on these technologies will effectively leave these countries’ governments in the dark ages, while their citizens will still be able to skirt any regulations as long as they have the Internet. I think we’re at a pivotal moment where non-tech-oriented people are only now waking up to the idea that Cryptocurrencies aren’t just fake Internet gold, and that the other cryptocurrencies out there aren’t just a different “brand” of Bitcoin, and can be evaluated entirely on their merits. (more…)
Feb 012016
– Commodity Trade Mantra – – How the Blockchain and Gold Can Work Together Posted By Rajesh J. Shah On February 1, 2016 @ 7:49 pm In Bitcoin,Gold Trading | No Comments   How the Blockchain and Gold Can Work Together A look into monetary history shows that people, when given freedom of choice, opted for precious metals as money. This doesn’t come as a surprise. Precious metals have the physical properties a medium must have to serve as legal tender: They are scarce, homogenous, durable, divisible, mintable, and transportable. They are held in high esteem and represent considerable value per unit of weight. Gold fulfills these requirements par excellence, and this is why it has always been peoples’ first choice in terms of money. Gold has proven its merits as money for millennia; it is the ultimate means of payment. More recently, gold has been replaced by the state’s unredeemable fiat money — for reasons rather more political than economic. The state prefers money whose value can be altered at will — say, to influence overall demand, redistribute income, and to benefit some at the expense of the many. Gold money stands in the way of such machinations. Fiat money doesn’t. On the contrary, fiat money can simply be printed up; can be created out of thin air. Fiat money has serious economic and ethical drawbacks, though. It is chronically inflationary, widens the gap between poor and rich, triggers boom-and-bust cycles, and compounds the economy’s debt burden. Most important, a fiat money regime allows the state to expand actually without limit, over time potentially transforming even a minimum state into a maximum state at the expense of individual liberty and freedom. In the wake of the most recent financial and economic crisis of 2007–2008, many people have become concerned that their savings, mostly invested in fiat-denominated bank accounts and bonds, could be devaluated. This has prompted a search for “good” money. Somewhat new to the mix are the digital currencies, most famous of which is the virtual unit “bitcoin.” It is a digital currency generated by decentralized, internet-based computers rather than a central authority. Transactions through digital currencies such as bitcoin are confirmed, or validated, by a decentralized consensus system that uses a “blockchain.” The latter is essentially a public digital ledger, an account statement for transactions among computers. The blockchain is saved on many computers so that it is practically impossible to manipulate. In the case of (more…)
Nov 172014
This article presents more evidence of the impending collapse of the Global Fiat Currency. There is history in this article about the cycles of currency and how they transitions. one to another. Here is the question, “What’s in your wallet?” Money or Currency. Mike The Future of Money By Graig Satell In the early 1970’s, the financial industry was transformed by a strange confluence of events. In 1973, The Chicago Board of Trade opened the first options trading floor and, almost as if on cue, just a month later, the Nobel prizewinning Black Scholes options pricing model was published. Soon after, Hewlett Packard came out with the first pocket computer small enough for traders to use on the floor and that, combined with a glut of engineering talent made available by the closing of the Apollo space program, created a wave of revolutionary change that is still being felt even today. Almost overnight, finance was transformed from a clubby world of cozy relationships to a mathematical one of complex securities, abstract formulas and computing power. Now, a generation later, the financial industry is about to be remade once again, except this time, it is not obscure financial securities that are being transformed, but very nature of money itself. What is Money? The concept of money dates back to the beginning of civilization. The Israeli currency, the shekel, was originally a measure of weight (11 grams) and each shekel coin originally corresponded to that amount of silver. Coins were stamped to certify that they contained the required weight, infusing transactions, even among strangers, with an element of trust. It’s easy to see how money caught on. It was a much more efficient way to transact business than bartering one good for another. Money was also a useful store of wealth, certainly more convenient than livestock or grains. Those two core functions—a medium of exchange and a store of value—still define money today. The nature of money changed after the Bretton Woods Conference in 1944, when most countries tied the value of their currencies to the US dollar, rather than to gold or silver. When the US went off the gold standard in 1971, all currencies essential became fiat moneys, with their value derived from the governments that issue them rather than from commodities. Many people object to the concept of fiat money because of the control governments have over them. Central (more…)
Nov 302010
Here are the new article that have been added recently. Gold: Fool’s gold seduces the masses by:David Case — GlobalPost Gold’s prestige got a strong jolt from World Bank President Robert Zoellick. With global currency wars set to be a hot topic in Seoul, Zoellick suggested that finance ministers consider re-adopting a modified global gold standard for the world’s currenc World Bank President’s Gold Standard Proposal: Reading Between the Lines by:Bo Peng World Bank prez, former US Treasury Secretary Robert Zoelick proposes employing gold as an international reference point of market expectations about inflation, deflation and future currency values, it carries more weight than 1000 goldbugs screaming buy Rebirth of the Gold Standard by:James West The idea of the gold standard has been fluttering around the fringes of mainstream economic discourse in varying degrees of ubiquity since the end of the Bretton Woods agreement in 1971 Money: The Quickest Way to Grab Profits from Emerging Markets: Currencies by:Evaldo Albuquerque They just followed the investment money. They knew the countries with the strongest fundamentals would attract the most investors – and the most cash. And the weakest countries would chase investors (and their money) away. Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)