Time To Learn About Money

By Alasdair Macleod – Re-Blogged From Gold Eagle

An unexpected destruction of fiat currency has been advanced by the monetary and fiscal response to the coronavirus. Financial markets have yet to discount the possibility of such an outcome, but in the coming months they are likely to awaken to this danger.

The question arises as to what will replace fiat currencies. In the past the answer has always been gold but today there are cryptocurrencies as well, whose enthusiasts are more aware than most of fiat money’s failings.

This article describes the basics about money, what it is and the role it plays in order to understand what will be required by the eventual replacement for fiat. It concludes that gold will return as the world’s medium of exchange, and secure cryptocurrencies, unable to provide the scalability and stability of value required of a medium of exchange will be priced in gold after the demise of fiat. But then the rationale for them will be gone, and with it their function as a store of value.

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Why Central Banks Could Mint Their Own Digital Currency

Re-Blogged From Stratfor

Highlights

  • Only 8 percent of global financial transactions today involve cash, but that figure will diminish even further as digital currencies gain prominence.
  • Faced with the growth of cryptocurrencies such as bitcoin, central banks around the world will continue their research into introducing their own digital currencies.
  • By entering the market for cryptocurrencies, central banks could pose a profound threat to the commercial banking business model.

A worker passes a bitcoin mining operation in Quebec in March 2018.

(LARS HAGBERG/AFP/Getty Images)

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Empire Strikes Back – At Bitcoin

By John Rubino – Re-Blogged From Dollar Collpse

One of the uncertainties with cryptocurrencies has always been how governments would react once bitcoin and its kin got big enough to actually threaten the monopolies of national fiat currencies.

That day seemed to be approaching as cryptocurrencies’ aggregate market cap blew through $100 billion and the pipeline of new bitcoin wannabes (initial coin offerings, or ICOs) swelled into the hundreds. Even – in a classic sign of a bubble top — Paris Hilton got involved:

Hotel Heiress Paris Hilton Is the Latest Celebrity to Promote an ICO

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