The following is an excerpt from the book “Demystifying Cryptocurrency” by Chuck Palm
“A nickel ain’t worth a dime anymore. –Yogi Berra”
Fiat money is the same worldwide. It can be traded for equal value, and exchanged (for a fee), so you can use it in other lands that have their own fiat currency. When paper currency goes away, there will be few choices to acquire things. You will either adapt, and use what the consensus believes is money, or you can prepare now, and take back the power that money gives you. Money is not wealth, freedom and time are wealth. Money is only the most popular method to have more free time to go and do as you please. I’ve never noticed that before, the phrase “free time” is what money buys you. Of course, it buys you things, but most things go away or get used up, just like time. To have the freedom that comes with money, you must make use of the world’s most valuable resource, that is also in the shortest supply, your time. Every second that passes, makes the remaining ones more valuable. The worst part is you never know how much time you have left in that bank!
To be prepared, most people think you must save. That is partially true, but to save, you must earn more than you spend, and not give into temptation. Sometimes, you can play it smart, and predict what might happen with an investment, say in a stock or piece of property, but again, you need to have the resources to be able to afford to buy the stock or real estate that may or may not go up in value. That sounds a lot like gambling. Here’s a sure bet, get out of fiat currency, and prepare for a shift in the financial landscape.
Why take my word for it? Do your own research, it’s not difficult. I challenge you to find any government-backed currency, that is not staked by some tangible asset, like gold or oil or something that is in demand and tell me how they fared. I’ll give you a hint, not one currency that was devalued by its governing body is still around today. They have ALL failed.
Will Fiat Currency Fail?
“Are you saying that the U.S. DOLLAR will FAIL? That can’t be right!”
I’m saying that in March of 2022, President Biden signed an executive order that sets a 180-day deadline for a series of reports on “the future of money” and the role that cryptocurrencies will play in the evolving landscape. It also calls for the exploration of a potential digital version of the U.S. dollar.
Since this indicates that the dollar will be “converted” into a cryptocurrency, it makes sense that there will be a conversion rate. This has never gone well for countries that have to convert their existing currencies into a new fiat currency, without a backing instrument like gold, silver, or a majorly traded commodity. When the US got off the gold standard, it caused a collapse of the dollar as a worldwide pegged currency, and the rest of the countries went back to a free-floating fiat currency. At the same time, the real value of the US dollar lost 20%, and our old friend inflation raised its ugly head again. In Europe, the EU also converted several countries’ currencies into one fiat currencies, known as the Euro Dollar ( € ). Italy, Portugal, Greece, and Spain were already in debt, and unifying the currencies was the most painful for Germany, which had recently undergone unification with East Germany, and it’s estimated the German people lost as much as 40% of the value of their savings, according to some. Because most Europeans believe that Germany, having stronger banks and regulations, control more of the economic decisions for loans and make financial deals that are more favorable to Germany, and that they are taking an unfair advantage of the system.
Throughout history, any financial system that has existed, has done so for only about 40-50 years. The current financial system that has made fiat currencies from multiple countries independent of any real “pegging” to a solid value commodity is already about 60 years old.
When it comes to other entities controlling economies, currency, or lending, I won’t even get into the Federal Reserve, or World Economic Forum, or George Soros, we’ll leave those for another book topic. Suffice it to say, learn what you can, and prepare to see some shenanigans, at very high levels of control.
You can draw your own conclusions, but it’s hard to dispute that governments and non-governmental banking organizations will take every advantage to control fiat currency rates, conversions, lending, and other arrangements to their advantage, and outside of your influence.
What Can Be Done to Fix Money?
Anything of value can be money, as we already know. How do you establish the baseline? When does 3 hens = 1 goat? Or 4 goats can be traded for a cow? Who determines the value, or the ratio of hens to goats? It’s really up to the same old, well established trade systems, perceived, agreed upon value, + supply and demand = actual value. (PAV+SD=AV or $$) In its purest form, this is the root of capitalism.
Whatever you have an excess of that you are willing to trade, vs. what you need, and willing to pay for your needed items, it will establish your base. Sometimes, you get stuck paying the “market value” for something, even if you don’t entirely agree with its calculated value.
If you like swordfish, but the catch is low this season, you will pay more for it, due to its scarcity, the supply of swordfish vs. demand for fresh seafood. The reason you need to really understand this concept is that the perceived value of something is really all that matters if both the seller and buyer agree on the price.
What is Perceived Value?
When we all agree on the value of any money, we can conduct equal trade, anywhere, with a 1-to-1 exchange of currency. If we are all carrying the same kind of currency, digitally or otherwise, it’s called fungible. That’s a fancy word saying that they are interchangeable. So, what is it about that currency that makes it better than any other form of payment?
Digital currency is perceived to be secure, convenient, and reliable. At the moment, this statement is mostly true. In 10 years, will that still be the case? What assurances do you have that someone in a huge, multinational, world bank will not decide to switch it out for something that is more favorable to THEM, without so much as consulting YOU? What about the technology behind the coin you’ve moved your entire life’s fortune over to? Will it continue to perform? You have no such assurance, and it is unlikely that anyone in the financial realm will ever ask your opinion on the matter.
Digital Currency – a Replacement For Money?
We have established that fiat currency that has no backing is doomed for failure eventually, and that perceived value of any asset is what it is actually worth, so, who’s to say that digital money is not real? Who is to say that the value of a highly traded stock, like TESLA, is real? How much do you trust the company? How much do you know about how it will perform in the future? If you are honest with yourself, probably not a whole lot. The value of the stock is subject to the same perception/value/worth equation, if you think it’s a good value, and you have the available funds, chances are you’ll take the risk. The same is true for any digital asset, cryptocurrency, or NFT (non-fungible token).
What if the digital money was to become the new money in circulation for all trade in the U.S.? Will you trust it? A lot of people did not trust the dollar when it came off the gold standard in 1971, especially people who were holding dollars as investments in foreign countries. They wanted their gold back. Americans took on a huge burden when a lot of that money came back, and guess what? It caused inflation! AGAIN! Digital money is not likely to do that. But when the value of a Cryptocurrency goes down, or crashes all together, you will lose all that you had invested in it. Currently, there are literally over 1000 choices for crypto coins, NFTs, and blockchain investments. How do you know which one to choose? Who do you think will win? Are you sure Bitcoin, Ethereum, or even Dogecoin will be around 10 years from now? What do you think these all have in common? They are all vulnerable to the same future money problem.
Let’s look into the future of money. We all agree that whatever money system we will use will most likely not be in the form of paper or metal disks. Fiat currency (or hard coin and paper money) is on the way out, and there is not much you or I can do about it. This presents a problem for the future of money. It will likely become more difficult to manage, and you’re going to need some kind of device, with access to a network, that can transact the simple purchases you make. So will the vendor of those goods and services. We all have a cell phone, right? No, not really. There are literally millions of people in countries all over the world who don’t own a any kind of digital device that has access to the internet. In some of those countries, entire families share one device, one phone number, even one email address. How will they gain access to those digital funds everyone is talking about?
The future money problem is global, as well as technical. But it starts here at home. Why should you worry about someone on the other side of the planet that may or may not have a connected device? Mainly, because if history repeats, they will likely be the ones supplying many people of the world with goods, raw materials, and labor. How do we make things equal for them? How do I know that they will have access to the funds that I use to buy things, and verify that they get paid for their part in its production?
To make matters worse, when we’re all using cryptocurrency, or some equivalent, how will we be able to travel to remote places, off-grid, or 3rd world countries, and conduct transactions, if their people have not adopted our non-fiat money? What about popular vacation spots that are remote, which is part of their appeal? There are still a lot of places where internet connectivity is spotty at best, and electricity even more so. Some are right here on this side of the world, like the Bahamian islands and the Philippines, where weather and geography still play havoc with your ability to phone home. This means, in 100 years (or less), unless these “dark spots” on the globe are somehow lit up, money will not fungible, (another word for equal, or tradeable 1 to 1) or the same, all over the world. We’ll need to build a lot of infrastructure around the globe to fix this problem. If this fails, then the entire world will feel the effect, again, simply because of scarcity, or supply and demand.
Chuck Palm, cryptocurrency advocate and blockchain enthusiast, has authored a book titled “Demystifying Cryptocurrency, A BEGINNER’S GUIDE TO UNDERSTANDING DIGITAL MONEY, NFTS, AND THE METAVERSE” – available now on Amazon, and as an Audiobook, on Audible and iTunes.
Described as a guide that is “Perfect for the crypto novice. It gives a solid explanation of what is going on in Web3 and how to think about the opportunities for individuals and businesses.” in an online review, written by Joe Pulizzi, known as the “Godfather of Content Marketing”, and author of the bestselling “Content Inc.” and “Epic Content Marketing” .
Chuck says the book is “a simple, easy to read guide to getting your feet wet with crypto, decentralized finance, and NFT’s. Also, it’s intentionally short, you can listen to the whole thing in about 2 1/2 hours”.
The book has only been out on Amazon for 2 months now, and has spent most of that time on Amazon’s bestseller list in its’ categories. The audio book version has just been released, and can be purchased on Amazon’s website.
###
For more information:
Chuck Palm
(813) 508-7854
Crypto Crusaders Newsletter is now LIVE on Linked-In!
SUBSCRIBE to the Newsletter, sent out weekly
