You won’t be buying things with actual coins. You wont be using paper ‘dollars’ representing gold (as in the past). Those things won’t even exist. The future is a digital money. Something incorruptible, verifiable and fast: a distributed blockchain ledger. Yes, it is similar to cryptocoins today. But not exactly. The difference is that the source code will be managed by your issuing government. Another difference is that it will be backed by gold. The coins can’t be backed by nothing, or governments will just issue unlimited coins like they do dollars today. Or they might just abandon their mismanaged un-backed crypto, and come out with a new one. There would be no base of value for the new unbacked-coin. It would fail anyways, as the rest of the world wouldn’t accept it. Instead, with gold-backed coins, there is a level playing field. Your money cannot be attacked as long as it’s honest and verifiable. It will be based on something with undisputed value that everyone is using – gold. Real gold money, only represented on a distributed ledger, world-wide. Ultimately, the value of their coins would be directly proportional to the amount of gold they have vaulted. The coins could be traded for other gold-backed coins, creating a free market pricing mechanism like the world has never experienced before.
Governments would be a lot more efficient using the gold-backed coins. They could adjust the the coin transaction fees (taxes) as they saw fit. This taxing-on-blockchain is reason enough to adopt. They wouldn’t miss a beat. There would be no escaping taxes, a priority for government. They take control of money away from all the middlemen. They run a hardened monetary system for almost no cost. Miners support their blockchain by mining the coins for the rewards involved in solving the cryptography. The rewards would be just a small fraction of the fee government takes in proportion to actual transaction sizes. It will be a truly free market, where value is stable and fair across all nations. Gold-backed coins could be exchanged for another countries coins easily with online exchanges. No one has one advantage over another. Everything becomes efficient, streamlined, and uniform. As long as the government manages their blockchain fairly, their nation will flourish with such liquidity and faith. Remember, the blockchain is transparent. Everyone can see what exists. Any funny business would exclude said country from world trade instantly. Their whole economy would crash, they would destroy themselves.
On the outside, the new blockchain won’t look much different than what we use today. You can still spend you money on a debit card or credit card in the exact same way. Banks can still hold and insure your savings securely, and distribute it to you in small amounts as you need, for safety and convenience. Blockchain, on the outside looks no different, it is just a means of accounting and transacting. You would spend it on your debit card without even knowing what is going behind the scenes.
Reality check: Take a look at the countries and banks buying gold. It should be a clear sign as to what they are preparing for. There is no other option, gold simply IS money. It has been since recorded history. Sorry to say, we were brainwashed into thinking otherwise. It has too many qualities qualifying it as the best possible money. I would bet anyone, that if they held some actual real gold coins of the past in their hand, that they would understand. If you are doubting now, go to the coin shop and hold one. Such a simple act will change your perception, I am sure. Sadly, 99.999% of people never have. You really need some basis to create an opinion. Having never felt a real gold coin is really pathetic to be honest. Do yourself the favor. Money must be based on something! There is nothing else that comes close to the functionally of gold connected to a blockchain. Anything else will become permanently corrupted, as it is now.
As stated before, gold is the perfect money. It is an element created by the universe and there is a finite supply. It is incorruptible, it will not rust, or tarnish. It simply cannot be destroyed or altered what so ever. It is easy to form and to work with, not to mention beautiful. Everyone really admires gold. We can’t have paper money that is created in unlimited supply as we do today, that is easily corrupted. We need something convenient. That is a digital money. We are always spending our money digitally as it is. Before blockchain, there was no way to transfer information, or money, in a way that was transparent. Banks all have separate methods and programs to move money around, nothing is universal or understandable to the laymen. Money today is created at will, and given to bankers. We are literally being stolen from by using their system. We are literally slaves to the bankers right now. We have no idea what is really happening, or what puppet strings they intended to pull with their banking trickery. Blockchain is actually very simple and open for all to see, there is no predicting “what next”, and that’s the beauty.
Why not Bitcoin or other decentralized cryptos?
Not all blockchains are like bitcoin. There are problems with bitcoin as currency. The greatest strengths are also its weaknesses. It’s totally decentralized and no single entity has any incentive to police it. While the blockchain is safe from hacking, your personal computer might not be. And actually, it isn’t safe from hackers. Supercomputers of the future may be able to take over the network and alter the core code, the rules for bitcoin to function. Those rules are only set by miner consensus of computing power. Also, if anyone ever had access to your private keys they could steal all of your bitcoins! Any mistake on your part, and you could lose everything. Nobody is going to help you in any case because bitcoin is designed to be anonymous – it would be impossible to find a thief. Imagine losing your life savings because of a keylogger or any other type of digital scam. We love insurance; to be protected by a group. There is no way to prove someone even stole your bitcoin. It can not be viably insured. Governments can’t effectively track and tax payments. They won’t allow it to be money. There are better and more secure options than bitcoin already anyways. Bitcoin is just ingrained right now. Blockchain is too overwhelming to most people, so they just focus on bitcoin because it’s the first.
Centralized blockchains are more flexible. A lot can be built on blockchain, just not something like you’ve been taught about Bitcoin. On a centralized blockchain, transactions may be reversed in case of fraud. They are protected from supercomputer hacks, because the network can’t change the code based on consensus. Code is managed by a central authority alone – only the transactions are solved by decentralized ledger.
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