Preserving Economic Sovereignty:
The historical significance of gold in monetary policy, bringing world peace through our right of self custodial ownership
Here we explore the revolutionary concept of self custodial p2p digital transfers of physical gold; Combining the value of precious metals with the efficiency of blockchain technology and the significance of providing physical redemption options, ensuring tangible value for users.
Furthermore, the critical right of ownership and self-custody of one’s data/assets, highlighting the importance of individuals having control over their data/assets. History proves that gold needs crypto, and crypto needs gold.
From the pharaohs of Egypt to the emperors of Rome, gold has been historically used as the foundation for early economic systems, representing a universal measure of value and facilitating trade.
Fast forward to the 19th century, England became the first country to officially adopt a “gold standard”.(1) As all trade imbalances between nations were settled with gold, governments had a strong incentive to stockpile gold for difficult times. This century in history witnessed unprecedented global economic growth, as gold provided a stable foundation for monetary systems. The American Civil War also put America in heavy debt to England, creating a wave of prospectors headed west in search of the shiny metal. The California Gold Rush not only fueled a poor man’s dreams but also contributed significantly to the infrastructure of the United States and world monetary policies.
In the decades before the First World War, international trade was conducted based on nations with surpluses would accumulate gold as payment. Conversely, nations with deficits saw their gold reserves decline as gold flowed out as payment. A global P2P network.
With World War I however, “political alliances” changed (England got greedy and wanted to maintain its superiority) , therefore pressured American leaders to halt mining production. So during WW1 mining gold in America was declared “non essential to the war effort”. However, because gold was now deemed “non essential”, international indebtedness increased and government economies deteriorated due to the cost of the war. While the gold supply fell behind the growth of the global economy, smaller countries began holding more of these nations paper currencies instead of gold. The result was a consolidation of gold into the hands of a few large nations.
These effects snowballed into the stock market crash of 1929 and was only one of the world’s post-war difficulties. Many countries tried to protect their gold reserves by increasing interest rates to incentivize investors to keep their paper currencies rather than convert them into gold. This only made international debt higher and led us into a world economic Depression. By 1931, the gold standard in England was suspended, leaving only the U.S. and France with large gold reserves.
“We have gold because we cannot trust governments,” President Herbert Hoover famously said in 1933 in his statement to Franklin D. Roosevelt. This statement foresaw one of the most Draconian events in financial history: the Emergency Banking Act, which forced all Americans to convert their gold coins, bullion, and certificates into U.S. dollars. “You will own nothing and like it”
In 1934, the U.S. government then revalued gold, raising the amount of paper money it took to buy one ounce.
As other nations could convert their existing gold into more U.S dollars, This effectively allowed the U.S. to corner the gold market. Gold production soared so much that by 1939 there was enough in the world to replace all global currency in circulation.
On August 15, 1971, President Richard M. Nixon announced his New Economic Policy, a program “to create a new prosperity without war”.(2) Today, I think it’s fair to say Mr. Nixon’s Economic Policy is heavily flawed, and has done nothing but create more war and kill innocent lives.
One thing is certain — gold. It isn’t just a commodity; it’s a natural element woven into the fabric of our economic history. Its legacy offering lessons in resilience, stability, and consensus. Gold didn’t make war. Greed from within a central authority did.
In an era dominated by digital transactions and evolving financial landscapes, it is critical we as humans take back and preserve our economic sovereignty through the practice of self-custody and against any one central authority. Studies contend that individuals retaining control over their assets fosters resilience against external influences.
By examining these historical precedents, current trends, and potential future scenarios, this thesis establishes a compelling case of importance of self-custodial digital gold in maintaining economic balance and safeguarding against systemic vulnerabilities.
As such, this represents an important contribution to the ongoing development of blockchain technology and its use cases.
Refined.sol
1.https://www.investopedia.com/ask/answers/09/gold-standard.asp
2. https://history.state.gov/milestones/1969-1976/nixon-shock#:~:text=On%20August%2015%2C%201971%2C%20President,end%20of%20World%20War%20II.
