Don Bielak
Oct 9 · 2 min read

I live in the U.S., earn my living in USD, spend USD to obtain things I need, so yes, the price in USD. Gold is a commodity, so it must be bought with something (fiat — unless you can find someone willing to trade it for pork bellies) and when sold, turned into something (fiat — unless you are willing to trade it for bushels of corn.) Every morning I turn on the financial shows and see the price of gold quoted in terms of $$$ per oz. So yeah, USD.

I’m not confusing anything. Ask people who bought gold at $1,900 an oz. if they think it has been a store of value. There is no debate that it cannot serve as a medium of exchange. Mere fluctuations of 1% or so on a daily basis — something that has occurred in gold on numerous occasions — negates it for this purpose.

Gold was at one time both a medium of exchange and a store of value. That time was during the days of the gold standard. The reason that it was capable of that was because the price of gold was set by government at $35 per oz. Therefore the value of gold was rendered static. Today, gold is traded on a world market and its value moves up and down with respect to the fiat that is used to purchase it.

As far as being a fan of systems that peg through actual backing, since it requires trust in the underlying organization that holds the asset, that’s your prerogative. I can only speak for our own. Our offering is made under the rules and regulations of the SEC. They have performed background checks on our officers and we must make regular filings with them. In short, we have complied with the regulators in ways that most cryptocurrency — based companies have not.

We have conducted every facet of our operations in a transparent, above — board manner. This may not be good enough for you, but it is for many others.

Finally, you never heard me say that we aim for a 5% return. That’s something that sprang from your imagination. All of our literature claims that we aim to preserve the value of our tokens by investing in short term U.S. securities which we expect will at least keep up with inflation, enabling our token to serve both as a medium of exchange and a store of value — a true stable token. You aren’t making the claim that gold appreciates at a 5% annual rate, are you?

Full disclosure: I am the CEO of Monetran LLC, an internet fintech company which has developed Moneda, a stable token based on the general principles outlined above. The method is patent pending at this time. More information can be found here.

Don Bielak

Written by

CEO of Monetran, LLC. Presently directing the development of Moneda — the first redeemable, asset-backed Stellar stable token.