Gold and Silver are the most iconic symbols of wealth in human history. We have used them as coins, and we have used them to create the value behind money. Many regard them as pillars of fiscal value, even though they have not been the standards of global currency for many decades. At the dawn of another new era in the history of money, standards are returning as the central power behind currency.
21 years before the writing of this article, Jack Weatherford explained that the world was entering the "third stage of its financial history." He wrote of "digital money," and the ways in which it could and would alter global monetary interactions. As we follow the tumultuous peaks and valleys of Bitcoin, Ethereum and new ICOs, Weatherford's work seems prophetic. Speculations that gold, silver and numismatics would suffer have been inherent in the discussion, although many still wager that crypto is not "real money" and won't be around for the long haul.
The facts seem to dictate that Cryptocurrencies coexist more harmoniously with gold and silver than fiat money. Crypto represents a return to more static standards of value. Numismatists may see drawbacks in digital currency because it exists in electronic space, but the same community must note that gold-backed ICOs are a return to the monetary standards that have been lacking in the global economy for a half century. Even the solutions to "blocks" that earn units of bitcoin are a more stable standard than the valuation of currency against currency that has diminished in integrity as economists forgot about the 1944 agreement at Bretton Woods.
Gold-backed Cryptocurrencies, and other cryptocurrencies are certainly bringing the tradition of standards back to money. Numismatists will note that, although we may not be collecting on the blockchain (yet), the power behind the money is returning. It seemed for a long while that we were living through the continued effects of George Washington's predictive 1786 statement that: “Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.” As gold and other standards resume a more formidable place in the digital coin realm, we seem to be emerging into a new era of real standards. The coin collector, commodities investor and tech expert can all take heart in this equally.
It seems that the ends of the financial spectrum are coming together as crypto and gold unite in the market, explains a Numismatist and Researcher here at Austin Lloyd. We see a favorable outlook for the gold and silver coins and bullion that have been waiting for a resurgence as monetary standards.
**This article is the second in the Series Coinage to Crypto from Austin Lloyd Inc.**