By: Elena Grace Flores
by Filipino Future
Covid19 Pandemic Lockdown and Global Currency Reset: A Return to Gold Economy
Marcos Gold Insurance vs. Cryptocurrency
It is said that the Philippines has millions of gold reserves. They are the insurance that the late President Ferdinand Marcos set-up to safeguard the Philippine economy. This is for the welfare of the Filipinos and the world in general. Once Congress can facilitate the process of their usage, a different ball game is at stake for the monetary players. However, the private entities still strive to survive amidst the pandemic through the emergence of cryptocurrencies. Will they thrive in the global currency reset?
Fiat Currency Problem
Criticisms of the fiat currency system predate the emergence of cryptocurrencies. Both the dollar and the euro are losing their strength. However, the publication of the Bitcoin whitepaper in 2008 was a watershed moment. To solve the ‘double-spend’ problem of digital currencies, the Bitcoin whitepaper shows that there could be a global currency without a sovereign issuer. Money without reserves. That sounds dangerous. So, going back to gold becomes irresistible. If not necessary.
Paper Money and Gold Currency
Paper money has no intrinsic value. They can’t build something, satisfy hunger or cure disease. Their only value is through belief that a stranger gives something in exchange for that piece of paper. Gold retains its value for centuries. During a period of economic uncertainty in the late 1960s and early 1970s many governments, investors and speculators began to lose trust in the dollar. They started to exchange their dollar for gold. Until President Richard Nixon decided to end the pegging of the dollar to gold.