Tuesday, February 27, 2018

As Fintech and Blockchain technologies accelerate in scope, the potential for new monetary systems built on gold and silver increase exponentially

Ironically, the same technologies that the banking system hopes to use to create a completely controlled cashless society are also the technologies that could potentially kill them as an institution.  And by this we mean that even now when the blockchain is in its infancy, there are dozens of different alternatives to using a bank to conduct your monetary affairs.

Cryptocurrencies like Bitcoin, along with gold backed financial services like GoldMoney, right now provide individuals and businesses an alternative to holding their cash in both dollars and in a legacy bank.  And when you add in one of the most important functions that banks used to provide prior to the 2008 financial crisis, there are also an ever growing number of ways to borrow capital outside of these institutions.

The keys to this potential of course are threefold.  First is the question of what type of assets, commodities, or resources are necessary to be able to handle a transition away from fiat currencies and sovereign banking systems.  Second is the question of whether retailers will accept new alternatives, especially if they become pressured to avoid these payment systems by corrupt and crony political authorities.  And lastly is the most crucial... will there be enough people willing to change their long-standing paradigm of relying on the banking system and venture out into the unknown world of the blockchain.

An example of the stubbornness of people I always like to use is when salaries and wages began moving away from printed checks to instead be directly deposited into their assigned bank accounts.  It took well over two decades for many workers to finally succumb to this evolution, because human nature is such that change can often be difficult to digest for many.

This type of change often requires either force or a crisis, and ironically the 2008 financial one that nearly brought down the entire banking system wasn't even enough to engender individuals to look for alternatives en masse.  This was because the majority of people's trust and security was much stronger in the government being able to find a solution rather than in themselves taking the time, effort, and responsibility to seize control over their own finances, as well as to protect their own future.

In a recent video over the weekend, long time metals analyst David Morgan spoke with The Daily Coin on one such platform on the blockchain that is being developed that could utilize silver as a medium of exchange, and an alternative to a corrupt and dying fiat currency system.  And this is but one of dozens of possibilities available to both businesses and individuals right now to proactively prepare for the inevitable dying of the current financial system that is a ticking time bomb just waiting for the right catalyst to bring it down.


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