Cryptocurrencies, Metals Possible to Co-Exist – Economist
Digital currencies and precious metals can synchronize each other in order to circumvent current market monopolies from “rigging the economy,” Austrian economist and libertarian Ron Paul showed in his recent study.
In his latest paper called “The Dollar Dilemma,” Paul depicted the distressing situation of the present monetary system. He also explained how virtual currencies and precious metals can co-exist to help overcome the worsening global economy.
“It’s a fallacy to believe the US has a free market economy. The economy is run by a conglomerate of individuals and special interests, in and out of government, including the Deep State, which controls central economic planning,” Paul stressed.
He explained the manipulation of the economy is necessary to prevent market forces from demanding a halt to the mistakes which planners continuously make.
“This deceptive policy can last only for a limited time. Ultimately, the market proves more powerful than government manipulation of economic events. The longer the process lasts, the greater the bubble that always bursts,” Paul said.
Paul raised the question of whether precious metals or virtual currencies will serve as the foundation to a new system in the future.
“Will precious metals return to serve as the foundation to a new system, or will the recently developed concept of cryptocurrencies participate in a new monetary order? The proper course is to make certain that free people in the marketplace make the choice whether the use cryptos, absent the dictates of government and central banks,” he said.
The process, according to Paul, “requires the rejection of the use of force and fraud for any chance of achieving success.” It would take a substantial amount of time to reach consensus for virtual currencies to challenge the history of precious metals acceptance.
“The marketplace is quite capable of sorting out the advantages and disadvantages of cryptocurrencies and precious metals. The biggest challenge will be to get the government out of the way to allow this choice. It’s conceivable that cryptocurrencies, using blockchain technology, and a gold standard could exist together, rather than posing an either-or choice — Different currencies may be used for certain transactions for efficiency reasons,” Paul noted in his recent paper.
Paul noted the longing for storage and speed can shape a decision in choosing a currency. He said that cryptocurrencies powered by the blockchain technology and a gold standard could synchronize.
“It appears that decentralized ledger technology will also be useful outside the sphere of digital currencies. A combination of gold and crypto will prove to be a lot more achievable than getting people to adapt to a totally new concept of money,” he added.
“For society to advance to the point of accepting a truly denationalized monetary system, a significant amount of energy will be required to rein in the power of government authoritarians — A modern-day currency needs an enlightened attitude about what the proper role for government ought to be in a civil society. We can use technical science for advancing civilization, but no one can ‘own’ it,” the paper states.
It added: “As valuable as wheel technology was, no one ever bought and sold this technology as a piece of property. The question that can only be answered by the market place is whether or not blockchain technology is just another great scientific breakthrough, or can it, in combination with cryptography, become a functional currency? The basic question boils down to this: Do all new currencies need to be based on something tangible?”
Surmising the point, Paul said taking into account the synchronization of precious metals and cryptocurrency can begin with discussing the need of a stable currency and the peril of central banking. It also pays to exert effort to “legalize competition to the US dollar and participate in the great debate over the fiat dollar, precious metals and crypto-blockchain technology.”