Solving Gold’s BIG Problem: How do you use it for everyday transactions?

Written by Bryan Lutz, Editor at Dollarcollapse.com:

Given gold IS sound money…

It’s big problem is that there ISN’T enough of it to use for everyday transactions.

That was one of the reasons behind Nixon taking the USD off the gold-standard.

Yes, the United States was having trouble paying for its deficits of the Vietnam War, but…

Due to the increasing number of dollars abroad and the fixed price of gold at $35 per ounce, U.S. gold reserves began to dwindle.

Other countries also realized they could exchange USD’s for gold. So they started to convert their dollar reserves into gold.

They wanted gold for three reasons:

1. Gold is money.
2. They were afraid the USD would not maintain the gold standard.
3. They wanted to compete by improving the value of their own currency with gold.

So, if some kind of new global monetary system were possible, and it was backed by a gold standard, then scarcity would still be a problem.

This was one of the problems pioneers like James Turk was trying to solve when he launched Goldmoney.com, which initially focused on digital gold currencies.

If you could use a currency that couldn’t be manipulated by governments then you had sound money.

Turk and his competitors (E-gold, E-bullion, and others) battled “to combine the security and inflation-resistance of precious metals backing, with payment system capabilities of digital currencies.”

As time passed on, they went through the phases all start-ups do and eventually settled into a vaulted gold platform (1996-2006).

You can find the entire history and more, on dollarcollapse.com’s gold-backed crypto currencies section.

So now you know, gold-backed currencies are an old idea…

Not a knew crypto idea…

It was only around 150 years ago when private companies simply issued paper notes. Individual States within the US had the power to give license to anyone who wanted to start a bank and then start a currency.

As long as they could back-up a currency with precious metals and prove the currencies worth to the market, they were good to operate.

Today, most people aren’t used to choosing currencies.

The USD has been so dominant that very few (except for the sound money / gold bug crowd) Americans really needed to think about a currency market right where they are.

That’s what crypto has done.

It’s made people think about alternatives to the USD. Albeit, with undeniably ludicrous promises of wealth. And in fact, so much so that in some cases people lose their life savings betting on HUGE GAINS trading currencies backed by zilch, nada, nothing.

But there are some currencies backed by sound money, divisible by transferrable segments, perfectly marketable as an everyday currency outside of the fiat system.

Here’s an example:

Some may think that what I am about to tell you is a pitch, but it is not.

Instead, my goal is to show you that solutions are being found to old problems at a level which bypasses the necessity(and risk) of government.

As an individual, you will soon be able to buy and sell using gold and silver.

One company ahead of solving that problem for consumers is LODE.

You can buy a gold-back or silver-backed token anytime.

And then, if you want to hold your gold, you can have it shipped to you(after a minimum required amount is met).

To understand more about the coming currency market, you can either check out our gold-back cryptocurrency page, or check out LODE’s learning section.

I would very much appreciate your thoughts on this.

Please, hit the comment button and let me know what you think.