Do you really want to own Dollars?

Do you really want to own dollars?

The US Dollar has lost around 10% of its value against the Euro so far this year. It has also lost ground against most other currencies. This may well be a sign of things to come.

In 1915, $4.26 could buy what $100 buys today. That’s how much value the USD has lost in the past hundred odd years. But that’s history — what about the future.

US government debt stands at over $20 trillion dollars. That’s $62,000 per citizen and $169,000 per taxpayer. On top of that, budget deficits are projected to exceed $9 trillion in the next 10 years. And the government has unfunded future obligations in the form of Medicare and social security payments of $104 trillion.

This is what $20,000,000,000,000 of debt looks like (Source:

While GDP growth appears to be reasonable, it’s no secret that much of that growth comes from asset price bubbles. The very wealthiest citizens are getting wealthier, while most citizens are seeing no increase in wealth after inflation. While the debt continues to grow, the burden to repay that debt falls onto a smaller percentage of the population. But, of course the very wealthiest taxpayers are pushing for a massive tax cut.

How will all of this end? It will end with monetization of the debt. Simply devalue the US dollar, and the debt gets absorbed in the buying power that each dollar loses. That means the debt disappears, but the prices of food, gas and other essentials go up.

Many believe the US is now very close to a tipping point where the USD will begin to rapidly lose value, ie. hyperinflation. And if the USD loses value, other currencies will begin gain value relative to the dollar. A weak dollar sets the stage for expensive imports and uncompetitive exports on a global scale. So what can you do? Well, you can store wealth in an asset that holds value. And only real assets truly hold their value.

Real Assets are assets that are tangible and cannot be reproduced. Real assets include Gold, Silver, Diamonds, other commodities and Real estate. Bitcoin is increasingly viewed as a real asset because the number of coins will never exceed 21 million — though it is of course non-tangible.

The other type of asset is a financial asset. These include fiat currencies (which are not backed by real assets), bonds, equities and derivatives. Financial assets are all priced relative to one another, and their value is always a perceived value. While financial assets do have periods of extreme price appreciation, during periods of devaluation, their values evaporate.

Real assets don’t lose value over time. Their prices may fall from time to time — but those prices are always measured in fiat currencies like the US dollar. Over time fiat currencies have always lost value.

Cryptocurrencies like Bitcoin are increasingly seen as a store of value. The problem is that like all markets that are still in their infancy, cryptocurrencies are very volatile. No one likes to see a portfolio move up and down 20% on a regular basis.

But what about a cryptocurrency backed by a real asset? Silvertoken is a token backed by physical silver that is securely stored in a vault. The tokens are redeemable for real silver, and are therefore directly equivalent to physical silver. Silvertoken is a safe haven for cryptocurrency investors during periods of volatility, as well as a means of protecting wealth from the inevitable devaluation of the US Dollar and other fiat currencies.

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