by Pure Blockchain Wealth, via SHTF Plan:
I’ve always viewed currencies as a funny asset class.
When I founded Pure Blockchain Wealth, the price of Bitcoin was $850, and when we emailed our alert on Ripple, it was $0.27 (a month later, it was $3.00).
Cryptocurrencies are a new, disruptive, and unique asset class, but the central question is: can they co-exist for long, without government intervention and legislation?
What we already know is that paper cash, the actual notes that represent the diminishing purchasing power of today’s fiat currencies, are being deliberately taken out of circulation.
The next step for currencies is total digitization. It’s a clear path they’re following, and it looks like another major trend is the dethroning of the USD as the standard unit of accounting for global transactions.
Since the late 1960s, governments have been concerned with the U.S. Federal Government and its spending habits.
Instead of defaulting on the gold standard, they have decoupled the currency from a tangible convertible asset, such as gold. All governments have followed this path; thus we live in a credit-based system. It’s all pure debt floating.
As you can see, HIVE Blockchain Technologies’ Chairman, the world-acclaimed fund manager, Frank Holmes, has shown that inflation is not stated correctly, since the way it’s measured doesn’t take into account many vital components, such as food and gasoline.
Frank Holmes, the multimillionaire, who was one of the seed investors of major gold miners over the past three decades, told me that cryptocurrencies are going to change how fiat currencies are used today.
Like me, he doesn’t expect Bitcoin or any other digital currency to replace gold and silver.
What we both agree on is that gold is a key asset class for investors who fear political instability. It is also important when facing runaway inflation and negative interest rates, but it can’t be used as an effective medium of exchange these days.