Fiat Currency, What Is It Good For... Absolutely Nothing.
Many people don't realize how our dollar is valued or what it is backed by. A recent survey published by Kitco exposed that nearly 1/3 of Americans still believe that the fiat green pieces of paper they hold represent gold, redeemable currency. This couldn't be further from the truth.
“If we look at this data as a reflection of a larger population, many Americans don ’t actually understand what the Fed is and what role it plays in our fiat system,” the report said. “When you consider that our lives center around money, it ’s always concerning to realize that many people out there do not understand the basics behind who controls it, what gives it value, and how the banks that we trust so much truly operate." This brutal reality leads us to attempt to understand the purpose of the FED and the implications of the fractional reserve lending system that has controlled our communities for a considerable length of time.
Exactly 84 years ago, on April 20, 1933, the United States abandoned the gold standard, delinking the value of the dollar to gold. The person responsible for that was President Franklin D. Roosevelt, who had urged Congress to take up reform of the currency system in January that year. He created some excuse to subjugate the nation using the new debt model that would keep the financial system churning for the central bank mafia that would soon take over the monetary system by controlling the debt. “The free circulation of gold coins is unnecessary, leads to hoarding, and tends to a possible weakening of national financial structures in times of emergency,” he said. (See also: The Gold Standard vs Fiat Currency)
Since then, the Fractional Reserve Lending program was adopted into the model of what we currently use today.
And you thought the money from the ATM machine was a value backed currency. Nope. It's just debt.
If Fiat Isn't Backed, Well So Can Bitcoin.
If you take a look at the value of bitcoin, we can see it is an asset "based upon" (not backed by ... BIG difference) the value of electricity and work. The intrinsic value is more nuanced in the supply demand economic prospect of the currency. Use case isn't really a factor here due to the observations of overwhelming network traffic and the hesitancy from most vendors to accept it as a payment. Just recently did Elon Musk from Tesla adopt it for use as an accepted currency, which spurred a new movement of price action within the token.
Even now, with the adoption coming, we can see the value is still only backed by nothing as vendors rush in to accept the payment. Arguably this decision comes only as a means to keep up with the driving momentum to get away from the scam dollar in the fractional reserve currency model. I suspect we will see more of this capitulation as the people wake up to truly realize what asset backing means.
Reserve Backed Currency. It Does Exist.
Even with the rising adoption of cypto, very few projects actually attempt to back their currency with any value; even BTC or ETH are not backed. Uniswap is a gold mine of opportunity but it is still just a value that is speculative and derived from various currencies that is not truly asset backed leading to the inevitable and dreaded "rug pulls" that we are all too familiar with. There is one project that I know of that is tackling this problem however, and it's worth keeping an eye on.
Metawhale.io is one project that seeks to use the trading fees acquired during trades to fill a reserve with actual gold. This model provides an asset with value backing that is transparent and decentralized, just as the vision of the monetary system should be. No bankers ripping of consumers, no rugs to be pulled. Just simple value that is observable and proven as stored within the reserve.
Details here:
MetaWhale Gold is a new paradigm in elastic supply tokenomics. It employs a self-renewable deflationary monetary policy that’s backed by self-filling reserves of tokenized and redeemable physical gold. MetaWhale Gold integrates the category of Value MetaWhale as it establishes its value from its reserves of tokenized gold, an asset that has the longest track record as a reliable store of value.
All around the cryptosphere are deflationary tokens, but market participants who enter after the implosion stage can only lose money as the systems collapse. Given that these protocols aren’t backed by anything other than their own tokens, the remaining holders get left with an important lesson about the true market value of their tokens. In MetaWhale Gold, deflation happens at the same time the protocol fills its own reserves. In doing so, the protocol allows all market participants to make the most out of a deflationary model whilst knowing to a deterministic certainty that their MetaWhale Gold holdings are backed by reserves of tokenized physical gold.
MetaWhale Gold Supply
- Initial Total Supply: 1,000,000 MWG
- Initial Ciculating Supply: 850,000 MWG
- CEX Exchange: 150,000 MWG (optional)
- Minimum Supply: 1 MWG
- Additional Mintable Airdrop: 350,000 MWG (maximum possible)
Every MetaWhale Gold Buy:
- Burns 1.25% of the total transaction value.
- Sends 1.25% of the total transaction value to MetaWhale Gold reserves.
Every MetaWhale Gold Sell:
- Burns 2.50% of the total transaction value.
- Sends 3.75% of the total transaction value to MetaWhale Gold reserves.
Every MetaWhale Gold Transfer Between Wallets
- Sender burns 1.25% of the total transaction value.
- Receiver sends 1.25% of the total transaction value to MetaWhale Gold reserves.
MetaWhale Gold Reserve
- Reserve Asset: Paxos Gold (PAXG)
MetaWhale Gold Liquidity
- Provided and locked during the launch
- Auto-liquidity provision built into the Reserve Actions.
The future of asset backing is here. Decentralized and free from the banker mafia.
Metawhale Telegram: https://t.me/defilabs_community
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