At a time when cryptocurrencies are aggressively promoted by none other than US President Donald Trump, among others, it is significant that The price of gold Jump to record summits almost every day. It is undoubtedly even more significant than a group of leading cryptocurrency, Tether, invests massively in gold, the same metal as the cryptocurrency aspires to replace and what economist John Maynard Keynes once described as a “barbaric relic”.
These developments are symptomatic of growing disorders and instability in the global economic and monetary order. They also suggest that cryptocurrencies practitioners resort to tactics similar to those launched in Britain in the early 1970s by tripper of Atout, which used synthetic wealth to acquire real assets.
An apparent way of becoming rich quickly is to Create and hype an asset – whether cryptocurrencies or glamorous stocks – then use the purchasing power which gives the holders to acquire “hard” assets, whether business, real estate or, as is the case now, gold.
What is happening represents another twist in the process. So-called stable or tokens, among which Tether is a leaderhave promoted their legitimacy as money on the grounds that they are supported by US dollars funds from their issuers. However, some fear that the dollar will now be on skates and therefore attach it, for its part, constitutes gold reserves.
Asset stripper used links in the city of London and the government to promote their image as solid portfolio companies determined to unlock value in sleeping businesses. This strengthened the value of their listed actions, which they then used as a currency to finance the acquisition of other listed companies which had precious real estate, which were duly sold for enormous profit.
This technique is somewhat similar to what is now emerging with cryptocurrencies. The difference is that, in the latter case, cryptocurrency transmitters will be able to use the value “golden back” and swollen with their currencies to acquire hard assets.
