Digital currencies
March 4th 2024
A layman’s look at a very confusing twist on money.
Going back about 14 years, I was confronted with a new twist on finance. Being one that is more curious than the average guy, I asked my golfing partners who were all a lot smarter than me, (I thought) - what do you know about this new currency called Bitcoin? All twelve of my friends who were mostly Americans were silent except to say, they had never heard of it. After a few hours of research and finding that I was more confused than when I started, I put the subject aside. Little did I know, I was a pioneer, inquiring into a new element of finance. My memory tells me that I was delving into a subject that was far too confusing and complicated for this high school dropout.
I recall reading that to make a Bitcoin that it was not physical but digital. Many hundreds of computers in some huge facility gobbling up electricity and trying to come up with mathematic theories that would be impossible to break. That was the basis of value to override the banking system and create a digital currency that could be traded and protected out of the sight of the government.
How did you get into this inner circle? I was always interested in separating myself from the prying eyes of government. I came to a brick wall with nowhere to go for more information. I was retired and doing all the things that interested me and that I had worked so hard to accomplish, and so on with sailing, golf and wheeling and dealing in my own little world.
For me, time was passing and although I was still keen on doing what I always did to keep busy in my life, my body was failing and I was not able to be the man I once was. More and more digital currencies came and went, some were fly-by-night cons, and some were quite legit but I put them out of my mind as the concept never hooked me as I have always put my money in tangible assets. I was not far off in my thinking from Warren Buffet who agreed that what do you do with a currency that can only be hoarded and not spent? Where is the asset that gives this mythical money its value? This opinion is changing slowly as banks in Europe are now incorporating the “Blockchain” technology into their transactions and many are developing their own digital currencies. The debt for many countries must be addressed and a solution for the western English-speaking countries is insurmountable. Political and financial dictates will demand a change and most pundits are predicting a financial collapse shortly. There is a financial war going on between digital currency and Gold. I would say that Gold and Silver are barely holding their own. Silver trading between $20.00 - $23.00 and gold not moving in any traditional fashion compared to history. The dollar and other regular currencies are falling whereas Bitcoin is very volatile and can change by as much as 40% in any direction. In 2008 when Bitcoin, first made its entry it was worth 0.06 cents, it is now trading at about $62,450. And has a maximum of only 21 million units to be mined. Many think this will drive the price per unit much higher. With the dollar showing weakness and the world in such conflict, why do we not see precious metals doing better?
No one can predict the future based on historic performance anymore so I am still looking for the answers. A bitcoin with all its benefits and secured assets other than GNP or mathematic mumbo-jumbo would seem to be an answer for me. For those who are of the same mind, I have come across a digital currency that has caught my interest. Physical Gold and Silver are the base assets that support this Cryptocurrency. It is in its initial stages and I don’t believe it is available yet. However, when you see Bitcoin go from a few cents to over $60,000, it makes me wonder if I have hit on the answer. Basically, you buy physical gold or silver and you own it. You pay for storage and administrative fees and can cash out at any time for real cash, whatever may be in the future, you can trade as you would with Bitcoin and all the benefits it provides in security and privacy with the backing of real age-old wealth asset. The interview was over one hour and was very informative. I liked the concept and it has taken a team of hundreds of experts (347) to draw up this plan. The interview was with Mike Adams @ Brighteom.com with the founder of “Load.one” Mr. Ian Richard Toews. I highly recommend this interview for the many who have been looking for an alternative to central banking notes or digital cryptocurrency. Your feedback would be helpful.
Paul D. Scott rantingsandraves.com