20190422-Best Thing for Gold Ever


Financial Turmoil Explained:  (Best Thing for Gold Ever)

Why he thinks crypto might be the best thing ever for gold?

-Nixon took the USD off the gold standard and put it on oil standard and become the petro dollar.

-Kissinger worked out a deal with the Saudi nations to have them to transact oil only in US dollar in exchange for US’ protection.  It worked very well for a few years.

-Now the petro dollar is eroded.  The US dollar is more pegged to the good faith and will of the US government.  The US government said inflation is low and they want more inflation by lowering interest rates and print more money.   This is fueling the ride of crypto currencies.  This is not going to stop， because  Newton’s law – object in motion tends to stay in motion.

-Most people still see USD is the only place for their money because it’ s so powerful.   They don’t see that the crypto train is catching up.

-But once the crypto currencies caught up with USD, the USD has to compete with it.   Therefore, the next obvious governments move will be to create their own crypto currencies.    The big one is going to try to replace the USD.

-The new government cryptos will first peg to the dollar.  At first its value will be up because it’s brand new.  But then it will soon decline, because people will realize that it’s just a digital, blockchain of fiat.   People will lose confidence in it just like they did with USD fiat.

-By then, the BTC and other crypto currencies will run parallel with these central banks’ crypto but are more valuable because they keep increase in value.   They governments will try to fight them any way they can.

-These central bank cryptos will fail.  At that time they will have to abandon these crypto currencies and they will be forced to back their crypto currency with gold. 

-Gold will need to be repriced to match trillions of currency units, at least USD 10,000 per oz.

-It will take 5-10 years for this to happen.   In the meantime, BTC and ETH and alike will get bigger.

-Then there will be two systems coexisting, one is BTC and the other central banks’ crypto backed by gold.

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