Why Should Millenials Invest into Gold-Backed Cryptocurrencies Like Karatcoin? Because Karatcoin Will Actually Survive Buterin’s Prophecy (While the Majority of Cryptos Will Bite the Dust)
At a crypto conference in Canada in October 2017, Ethereum founder Vitalik Buterin made the sobering assessment that 90% of tokens launched on the Ethereum platform will fail. In Buterin’s own words, “It is an established fact that ninety percent of startups fail. And it should also be an established fact that ninety percent of these EC20s on CoinMarketCap are going to go to zero.”
If you want to succeed in the crypto market, you should accept the fact that Buterin’s Prophecy is absolutely correct. But you should also remember that while cynics often compare the cryptocurrency boom with the Dot Com Boom of the late 90s, what the cynics always fail to acknowledge is that companies such as Amazon, eBay, Yahoo!, Priceline.com, Shutterfly, and Google also emerged from the Dot Com Bust (fun fact, the search engine Excite.com actually had the chance to purchase Google for $750,000 in 1999).
Much like the Dot Com boom, while the majority of coins being currently offered in the crypto economy will inevitably bite the dust, there will also be coins that emerge as technological and commercial behemoths that will transform the global economy.
Yet the allegations that many cryptos are “vapor ware” is not only correct, it also highlights one of the psychological “blind spots” that many Millennial investors unconsciously maintain when assessing whether to financially invest into a crypto — they financially value the crypto using fiat currencies.
What’s the problem here?
Well, on one hand, cryptos were created in order to create both a decentralized currency and economy that moved away from fiat currencies…yet this hasn’t stopped Millenials from obsessively valuing cryptos using those exact same currencies (especially those looking for a crypto to “moon” so they can buy a “Lambo”).
The problem is that a crypto that’s worth $10,000 doesn’t mean much if a gallon of gasoline costs $5,000 and a loaf of bread costs $7,000 because of Quantitative Easing and rampant currency debasement. Look no further than Venezuela’s current currency crisis, where the Bolivar has become so worthless that their currency is now measured by weight rather than denomination (shopkeepers will literally stack bricks of Bolivars onto a scale rather than go through the laborious and mind-numbing process of actually having to count them).
Venezuela is just one example of the growing instability in the currency markets, and with the Euro faltering and a growing trade war between China and the United States escalating, Millenials need to understand one of the primary reasons central banks are so scared of cryptos. The global currency markets are about to go through both a revolution and a renaissance.
As fiat currencies falter and become more volatile, what currencies will cryptos naturally gravitate to in order to establish trust, stability, and a guaranteed store of value? Those currencies would of course be gold and silver.
Allow me to put this into perspective. While gold has been coveted and hoarded since the dawn of civilization, it wasn’t until the Greek city state of Lydia started minting gold coins and using them in trade that we officially adopted the gold standard. That was in 700 B.C. For 2,700 years, international trade has been buttressed by gold, and it wasn’t until President Nixon removed the American Dollar from the gold standard in 1971 that we officially adopted the belief that gold was a “barbarous relic.”
But of course, we never wholeheartedly embraced that belief. For while central banks were more than happy to encourage that narrative in order to secure the legitimacy of fiat currencies, they privately still hoarded gold because they knew what they’re were peddling to the public was nonsense. Indeed, Russia and China are buying and hoarding gold like mad men, and if the Chinese are able to release a gold-backed Yuan, we’ll see how much of a barbarous relic it actually is when investors and businesses actually have a tangible store of value that they can use to protect their wealth.
Millenials are known to be a technologically savvy generation, but they should also become students of history and utilize common sense when it comes to investing their wealth. The Nixonian fiat currency has lasted 47 years, whereas gold has been used as a currency for 2,700. You tell me which constitutes a “fluke” that will inevitably collapse into the dustbin of history, especially with reckless policies such as Quantitative Easing guaranteeing hyperinflation in the future.
Whether Millennial investors are conscious of it or not, in addition to the massive technological changes that cryptos will inevitably unleash upon the global economy, another benefit they will provide is resurrecting the international gold standard and allowing real price point discovery to emerge as cryptos seek stability in order to enhance their commercial appeal to both businesses and investors.
Karatcoin not only offers their investors a comprehensive portfolio of gold-backed products and services, but we also source our gold directly from our own mines, while simultaneously adhering to the United Nations Guiding Principles on Business and Human Rights in order to ensure that local communities and workers actually benefit economically from their mining industries. Those Guiding Principles also includes a Code of Conduct that helps to protect both the environment as well as the exploitation of child labor. For more information, visit us at https://karatcoin.co/
