THE VALUE OF CRYPTOCURRENCY
YOUR SPENDING POWER RANK
A couple days ago, I wrote an article: DEVALUATION OF MONEY. The topic was very specific. This is in a way the opposite article to that one but….
I learned years ago when I was studying Stock Market Investing a very valuable piece of information. The person that was doing the training stated, “when the money flows out of one sector of the market, it will surface in another sector”. He went on and stated, “it is up to you to find where it is going and get there first”.
I write this because just as this article in a way is the opposite of the other article, it is ABOUT THE FLOW OF MONEY. What we are faced with everyday is how do we rank in SPENDING POWER?
More than 20 years ago, I sat in the audience of a Network Marketing company as the presenter address just this very subject. He discussed the value of Gold as of that time and what it was 100 years before. Ex: In 1892, the price was $20.67. In 1992, the price was $333.00. He further discussed that in 1892, a gentleman could go and buy an entire outfit of fine clothes for an ounce of Gold. In 1992, a gentleman can still purchase an entire outfit of fine clothes for an ounce of Gold.
Did the clothes actually cost $310 more? It cost the same however, the relationship between Gold and the Dollar changed.
What is happening to THE VALUE OF CRYPTOCURRENCY? Is the value really increasing or is this an adjustment to the relationship to FIAT CURRENCY? GOLD has always been accepted as a true storage of value. Hence the example above of the stable purchasing power of 1 ounce of Gold.
One can reasonably assume the relationship between THE VALUE OF CRYPTOCURRENCY and FIAT CURRENCY is not the same as the relationship between FIAT CURRENCY and GOLD. This is true, however, the relationship between FIAT CURRENCY and GOLD was established at the beginnings of Banking. (The final disassociation between FIAT CURRENCY and GOLD occurred in 1971 by then President Nixon.)
Getting back on track with this, THE VALUE OF CRYPTOCURRENCY is yet to be established. The value of FIAT CURRENCY is still being eroded by the Banking community’s practices of fractional reserves (among other matters that are not repairable).
THE VALUE OF CRYPTOCURRENCY
A Founder from a company that is strategically versed in this arena, commented once: “There are 3 more years for someone to make some serious money in this industry.” In a way, he was making a reference to the fact that this is a time frame he has placed on the stability of this valuation.
I do not wholeheartedly agree with his statement because I do not see the same relationship between THE VALUE OF CRYPTOCURRENCY and FIAT CURRENCY. I see it as a parallel industry that we have not evaluated before. The plus on this is the fact that we are due a serious economic collapse under the current situation and this may be averted by adoption of some of the technology into our current system. (There has to be other concessions as well.)
By now, you might be wondering about the photo associated with this article. This is the means that I have over the years become to understand much of this information. One company has been putting in place the necessary components to make this transition. This company is COMPUMATRIX.
In the words of the founder, HENRY JAMES BANAYAT, “Henry James - 02/20/2018
Yeah... there's just too many fiat currencies in trouble these days... and this blockchain technology sure has potential to give the purchasing power back to people...”