What is preventing the adoption of sound money and cryptocurrencies on the large-scale?
Answer: Governments. They don’t like this type of Fintech.
Why are various nations blocking said adoption? They will lose control of the money supply and the ability to spend with impunity. Do Governments really fear cryptocurrencies? If they don’t, they are fools. They know what happens next.
Is it not easy for the various commissions and other government agencies to investigate cryptocurrencies, repeatedly exposing the criminals who use them? Sometimes.
Who on earth would trust electronic money i.e., a cryptocurrency? Debit and credit card users.
Could cryptocurrencies be backed by gold? Many already are.
Today, the United States of America is not on the gold standard. We know this. The Federal Government creates money from thin air and our banks line up to play the game — creating more money in the process.
Several states are investigating the possibility of implementing a gold and/or silver standard, however. They are Utah, Oklahoma and Texas. Even Louisiana is getting into the act. There has been a modicum of success.
Some of these states allow the use of gold and silver as legal tender and do not tax them at the state level. But there are federal taxes. And that is the stumbling block — the blockade against sound money.
The implementation of a gold-backed currency, like Bitgold™ (now GoldMoney) (from Canada), is not unconstitutional, in the United States. Again, however, the tax blockade awaits many of us the world over. The final barrier to entry.
This barrier is a “wall” between sound money — gold or silver — and efficient banking — blockchain technology.
“Dear Governments, tear down that wall!”
One might think that the U.S. Constitution settles the matter for Americans…
No State shall … coin Money … make any Thing but gold and silver Coin a Tender in Payment of Debts…
To be more specific…
The United States has a legal and constitutional silver standard, although we would not know it today, since the government has illegally and unconstitutionally removed silver as currency and replaced it with the Federal Reserve notes that we know as dollar bills. The term “dollar bills” obscures the actual and tangible meaning of “dollar” as a specific weight of silver.
But the matter is not settled. The store of value which has traditionally been silver or gold, is not allowed to be used as legal tender in the whole of the United States, without extra taxation.
As reviewed by the Mises Institute, this is unconstitutional — in the United States of America. Strong words.
Early attempts to break away from the pack, like PayPal™ or GreenDot™, certainly motivated others to keep at it. Always on the search, the drive to a more efficient monetary system. A never-ending battle to restore, renew and regenerate, not just the American Dream, but the dream of every freedom seeking human on this earth.
Certainly gold was on the mind of “Satoshi Nakamoto” when cryptocurrency was born. The world has never been the same since.
But the world only received half of the monetary puzzle from cryptocurrency. The other half, the gold and silver, lay waiting. The soundest of all monies, just at arm’s length — behind a giant wall of taxation — in America.
Finally, at our breakfast table one morning, just after we partake of our morning coffee or perhaps tea, we read a blog like this one. Chill bumps or the goose-flesh, if you prefer, crawls up our collective spines, quickens our hearts and electrifies our senses. This we think — this could work.
After we have dismissed the notion that we are not entirely insane, we begin to comprehend that in our hands, for the first time in a century, we hold the digital key. A precious moment is upon us. Never in monetary history have so many owed so much to so few — again.
They way is forward, into the fray, not into the past where money and savings are the whims of politicians. Instead, into a future where sound money is a choice made by individuals.
Let those bent on fiscal destruction wallow in the misery of their own making. The demise of monetary hubris is at hand. The rebirth of the honest man, with honest money, will be unrecognizable from the loot disgorged from the decaying financial systems of the past.
The digital key, I submit is not the blockchain technology in and of itself, whether it becomes Bitcoin, Ethereum™, Litecoin™, Monero™ or some other cryptocurrency or a combination of many ‘coins. That is not the entire answer.
The digital key fits a lock. In fact, it is a perfect fit. It’s called the U.S. Supreme Court. At times a bit political and by no means perfect and yet that key is there.
It’s time to challenge the constitutionality of federally imposed mandates which place a tax upon state currencies. Once the challenge is won, it will be difficult to stop the flood of cryptocurrencies backed by sound money, escaping into the world economies.
This is the true benefit of cryptocurrencies and gold — or Digital Gold.
We need only have the guts to insert the digital key.
(Stay tuned for “The Crypto-Magicians” and why cryptocurrencies like Monero, could soon challenge Bitcoin’s lead.)