FAQs Frequently Asked Questions
Crypto Report
I just read that China is hoarding gold (which we know) & is backing the yuan with gold in order to dethrone the US$ as the world currency. Is there a reason why the US could not back the US$ with gold again?
China's growth could surpass the US sometime over the next several years. By some metrics, it already has. Backing a currency with sufficient gold supply would only add strength and "faith" in that currency. China could certainly try this with the yuan.
It is less likely the U.S. dollar would do this with the dollar because it removes the cart blanch money printing mechanism which is characteristic of all late stage long term debt cycles.
Bitcoin could become the substitute for gold as fiat-backed bitcoin, though any government would not look to use bitcoin at least for now as it remains too volatile thus does not measure up to a store of value... yet.
It is less likely the U.S. dollar would do this with the dollar because it removes the cart blanch money printing mechanism which is characteristic of all late stage long term debt cycles.
Bitcoin could become the substitute for gold as fiat-backed bitcoin, though any government would not look to use bitcoin at least for now as it remains too volatile thus does not measure up to a store of value... yet.
| First published: | 8 Jun 2020 |
| Last updated: | 8 Jun 2020 |