A SILVER dollar has about 3/4ths of an ounce of silver in it, worth about $12.00 today.
Where did the other $11.00 (92%) go?
The government stole it fair and square.
In the future, the transactions will take place at the speed with which we can drive our oxcarts to the local Amazon.gov office to exchange our gold for staples like Aunt Michelle’s frozen pizza and Cheetos. :)
When you boil it all down, the USAs ability to knock your entire population into the Stone Age is what makes the dollar the default currency of the entire world.
Modern money has symbolic value. Its symbolic value arises from belief that something of value stands behind it. Fiat money might be a scam or popular delusion, but is a widely accepted scam, ultimately backed by “faith” in the issuing government (i.e., the taxes it can levy) and an economy that can support taxation.
Please explain how “blockchain” actually work. What is the thing of intrinsic value that stands behind it? Who creates the money, and how?
Bitcoin is in the early phase for the next bull cycle.
No matter how good you think a digital currency would be, it can never be allowed past the fringes. Banks and retail are looking at it but none of that matters when you can buy 2000 lbs. of heroine and have it mailed to your door by Fedex. They pay for murders of people, buy children for sex, and guns for people that can't pass background checks. No one knows the value changed and you made 200% profit. No one can safeguard your wallet acct. and you will lose 100% with a hacker.
The problems are numerous but the ability to tax will finish it.
Couple of "what if's", What if N. Korea decides to sell Iran a nuke for a million bitcoins? What if Iran sends bitcoins to Hezbollah with no one knowing? What if N. Korea buys oil from Russia or China using bitcoin?
We already know the cartels are moving mountains of drugs using the dark web and Bitcoin. How about crooked politicians selling secrets to the enemy?
Stopping all this is hard enough using fiat money, but at least it leaves a paper trail. IMO, if this gets big enough, the tax authorities will start to squawk. Another problem is the dollar is the reserve currency. Losing that would be catastrophic for America. Being able to print money is the reason we still have our head above water now, otherwise Argentina comes to mind. The gubmint is already talking, Democrat and Republican, about multi trillion dollar ideas and some of them will probably be enacted at some time. We can hardly pay interest right now @ 2%. As long as we can print the reserve currency, we will print our way out. Losing reserve currency status just means you print local worthless script that the world will reject.
Is DAG as secure?
“Today, the US Dollar is losing its world reserve status”
no, it’s not. the US dollar is stronger than ever due to the fact that it’s the most stable currency on the planet and foreign investors are buying it like crazy because of that ... Trump has stated that’s one of the main reasons he wants the Fed to lower interest rates ...
“Each day as more blockchain economies emerge,”
I’m not aware that ANY blockchain “economies” exist ... how about posting a list of such economies, what is traded in each “economy” and the number of transactions and the annual value and velocity of each one ... perhaps a few links to such information would back your claim ...
2 issues raised by this article:
1) The cruel result of fiat currency and central banks printing money. It is a tax on all citizens. I take 3 items, bread, apples and cars. From 1975 to now they have risen in inflation adjusted prices far more than wages. So while sure we can buy cheap I phones we can’t eat them. REAL cost of living (housing food and gas) have spiraled wildly out of control. A direct result of governments not living in their means.
2) Bitcoin: not an expert, but I see it has sharply rebounded off its lows.