China set to unravel cryptocurrency backed with 20 thousand ton of gold

[im1badpup1]

Hi all

So Chinas reportedly going to release a national cryptocurrency backed with twenty thousand tonnes of gold theyve held back.
The idea is too cut the banks out the transactions altogether.
Now this would likely collapse fiat currency as it would collapse the world banking system, UNLESS the dollar, the euro the pound etc started to hold large gold reserves they could also back their currency with. And even if they did readopt the gold standard the financial institutions are a crippling burden of costs on businesses.
Were set in the next decade for gold production to drop by 1/3 as resources are finite and dry up.
Gold consumption is set to increase 1/3
Were almost at a point of 'peak gold' that is production will not increase no matter how much work goes into trying to mine or recycle the stuff.

The other big talking points are these, pollution in india and east asia is at a point industry will HAVE to adopt controls, platinum and palladium, main catalysts for cleaning up pollution, silver and gold will also be consumed.

So were approaching a convergence of practical value via necessity of precious metals both in pollution control and clean fuel sysnthesis and technology. And the money market becoming increasingly dependant upon gold reserves as a token of reassurance that fiat currency isnt just worthless paper with ink been printed off whenever a country needs a few billion off the magic money tree.. USA and europe are currently printing off 300billion each, 30billion a month until further notice. Thats a quarter of all their cash in circulation btw. So it comes as no suprise golds jump by over 25% since they started printing more money, theyre in effect devaluing their currencys and gold is just readjusting with the pace

heres max keisers report https://bitcoinist.com/china-cryptocurrency-gold-backed-says-max-keiser/

If hes accurate what ways do the west have to counter this?

 

[Johnny5]

Were set in the next decade for gold production to drop by 1/3 as resources are finite and dry up.

heres max keisers report https://bitcoinist.com/china-cryptocurrency-gold-backed-says-max-keiser/

The first problem is that this story comes from bitcoinist.com. So you have to assume that they are bias right from the start.
And to further confirm that, if you took all the gold that has ever been recovered since the beginning of mankind, it would only represent a small fraction of all the gold on Earth.
According to provident metals, approximately 2500-3000 tonnes are mine every year, and there's only been approximately 190,000 tonnes found so far, since the beginning of mankind.
So I think it's safe to say we don't have anything to worry about.
https://www.google.com/amp/s/amp.providentmetals.com/knowledge-center/precious-metals-resources/global-gold-supply-predictions.html

The problem is not the volume of gold remaining on Earth, the problem is extracting it economically using current methods. Its no secret that our oceans hold enormous quantities of gold. In 2017 Forbes reported that an estimated $771 trillion worth of gold is contained in sea water, which is well over 16 million tonnes (Troy), or 21.5 million tons (Troy). And that's just sea water. As I said before, I think we're safe. Someone just needs to build a better mousetrap.
https://www.google.com/amp/s/www.forbes.com/sites/trevornace/2017/09/15/771-trillion-worth-gold-hidden-ocean/amp/

 

[rickzeien]

I think Johnny5 is correct. Gold and other commodities price is regulated by supply and demand.

If the Chines or others make a move and shrink the world's available gold the price will go up.

When oil was 4 dollars a barrel exploration and alternate methods of extraction were abandoned as the cost of getting the oil exceeded the cost of extraction.

When oil got to 100 dollars per barrel it was all hands (and methods) were on deck.

The same will happen with gold production. If price and demand increases significantly an increase gold production will follow.

There will be other responses as well. Using less in certain processes, alternative material and designing electronics that are more recycle friendly are just a few examples that come to mind.



Sent from my SM-G950U using Tapatalk

 

[nickvc]

Another couple of points to remember is if the price of gold does increase substantially then more sources of gold will open up as profitable, and why would China want to destroy their main customers economies which would also have a knock on effect on their own as they are now a main manufacturing and exporting nation .

 

[g_axelsson]

If China does create a cryptocurrency based on 20.000 tons of gold... would you trust them that they have the gold they claim? How would you turn your digital coins into physical gold?

I would say that a cryptocurrency is wort as much as the paper it's printed on. :wink:

Fiat currency, the currency of a country is backed by the resources and economy of the country. Metal backed currencies is a thing of the past and going back to that would be an economic catastrophe, throwing us back to a barter economy. There's not enough gold in the world to sustain the current economy. At least, we would need to have a tulip bulb backed currency to keep up with demands.

Göran

 

[anachronism]

If China declares and verifies their true gold holdings the price of gold will shoot through the roof when people realise they are holding most of the real gold.

They are holding at least this much, whilst almost everyone else is holding promissory notes.

Gold isn't regulated by supply and demand it's regulated by those interested in keeping the price low. This kind of official announcement (if it happened) would break apart one of the biggest price fixes there is. To believe in paper money, or to believe that a currency backed by metal is going backwards is naive at best.

After all why did the governments take the metals from the currency in the first place.

 

[Ohiogoldfever]

I know, I know I’m digging up old bones. This one seems to be ever more relevant with the condition of our world as of late. A few questions.

Sooooo what happened to to the massive gold stores the US had prior to Nixon and his buddies? That must have vaporized as part of the fiat ponsi.

Does anyone here believe that a digital currency is anything other than a disaster waiting to happen? Tornado, sorry I can’t buy bread until the powers up. Earthquake, oh well I hope the government will save us all because my cell phones dead....

Alas humans desire for convince will be the end of us all.

 

[rickbb]

Crypto is/was not a disaster, not for me anyway. Sold it all off as soon as the price went above 20% net profit. :wink:

Now people who are buying/mining it now, with the price at record highs, well they might be in for a rude awakening when the price crashes, which it will, just like stocks, bonds, real estate, etc. Markets go up, markets go down, always have, always will. No mystery or doomsday predictions, just the way it is.

Now if only gold would stay above $2k long enough for me to find a buyer I'd unload that too.

 

[Machine]

Does China really hold that much gold? An impossibly large amount. 20,000 tonnes is $1.5 trillion.