Crypto Currencies Vs. Digital Currencies Explained

Crypto Currencies Vs. Digital Currencies Explained

Where Do Central Banks Stand On Crypto Currencies?

Central Banks in nearly every country in the world are in charge of printing money and setting monetary policies they deem to be ideal depending on the current economic climate. This clearly gives them immense power and essentially puts our relative economic wellbeing in their hands. Recently, the world’s most powerful central banker commented on crypto currencies. U.S. Federal Reserve Chairman Jerome Powell in early April said he believes, and the Fed believes, “what people call crypto currencies, they’re really vehicles for speculation. No one is using them for payments, for example, like the dollar.” Janet Yellen, the current U.S. Treasury Secretary and former Federal Reserve Chairman, echoed the same exact thing. Bank of England Governor Andrew Bailey claimed Crypto investors should be prepared to lose everything saying that the only value crypto currencies have is what value people put on them, but have no intrinsic value.

Is it True?

Yes, but then we have to ask ourselves, where does the value of the dollar come from or the British Pound or the Chinese Yuan for that matter?

The answer is, none of these currencies crypto or otherwise have any intrinsic value. The value of any currency after leaving the gold standard comes from the trust people place in the network as a medium of exchange. So if you do not trust central banks because they tend to lose you a lot of money in periodic crashes due to their policies, and you don’t trust local banks with your money, then crypto definitely has a value to you because it can’t be confiscated, and it is not under the control of any central authority. It is a hedge against Fiat money, which are paper currencies backed by the trust people place in that particular currency’s government, economy, and economic policies implemented by central banks.

So when central bankers talk down to crypto currencies it’s because they have to, seeing as they represent the validity and trust behind their fiat currency. They say there are risks to crypto currencies, and there are, but just look at the 2007-2008 crash where people lost everything, even their homes backed by sub-prime mortgages that were supposed to be backed by the government. Isn’t that risk as well? Not to mention, fiat currencies have a long history of losing all of their value, most recently Venezuela with hyperinflation and now Turkey with double digit inflation, a currency drop, and rapidly depleting foreign currency reserves. These are real currencies just like the USD and British Pound that also have inherent risks like crypto currencies, just different ones. Also note, the people in Turkey who didn’t lose a lot of their wealth due to inflation were the people that bought (traded in) their paper money and invested in crypto currencies on time.

Then China…

Meanwhile, China has banned payment institutions and payment companies from providing services related to crypto currency transactions, period, but they do allow their citizens to invest in crypto currencies, calling them instead “Digital Assets” instead of a currency or form of exchange because they banned it from being exchanged. They have done so to make sure that all of that money remains in the Chinese economy instead of going abroad. In fact, China has the most cryptocurrency mining centers in the world, and are actually using many of the new innovations in cryptocurrencies to adapt to its new Digital Yuan. That brings us to the difference between digital currencies and crypto currencies.

Freedom Vs. Control

Crypto currencies are completely independent from any central authority like a central bank whereas digital currencies, even though they might use some adaptation of blockchain technology similar to crypto currencies, are completely controlled by each country’s individual central bank, meaning it actually puts more trust in central banks than before. China is way ahead of every other country in developing its digital currency, and has already put it through multiple test trials in different cities with success. China’s goal is not for freer markets, but exactly the opposite. Not just China, but any central bank for that matter has the goal of having real time surveillance of what people are buying to know how they need to adjust their policies to keep markets up. This sounds nice in theory, just like socialism and communism, but in reality is another mechanism that takes away the freedoms and privacy of we the people. For example, if I want to buy a gun with the new digital dollar, but the current government decides that is not a desirable item, upon check out it won’t be allowed. If I want to buy a car that runs on gas, but the current government decides that’s against their policies, your new digital currency will not allow you to buy it. All of a sudden cashless doesn’t sound so “convenient” anymore, but is the exact opposite, plus totalitarian. Just because it comes in nice wrapping doesn’t mean what’s inside is good.

From Now On

Every major economy in the world is currently developing its new digital currency in case you were unaware. The new financial framework of almost every central and major Investment bank, international corporation, hedge fund, etc. have already signed on to a new financial framework for the upcoming global economic reset via the Paris Climate Accords and have unanimously agreed to implement what is called an ESG score. If your lifestyle, buying habits, investments, business, family, and social life do not fit within the framework of this new social credit score your score will be lowered and you are penalised in a number of ways such as not being allowed to get loans of any type, government benefits, and the list is a mile long. To learn the details about what an ESG score is and how it came about, click here. All of the major entities listed above have already introduced these guidelines into the structures, policies, and investment portfolios of their businesses. If you are a member of a major bank like Bank of America for example you can login to your account right now and see what your ESG score is. This is not a theory, it has already happened, and now the powers that be just have to back it up with the law to make it binding.

We do not right this to alarm you, but simply inform you. With knowledge of what is coming we can not only prepare, but also put ourselves in a situation to prosper once these policies are implemented, so let’s be smart, prepare, and situate ourselves to prosper. Don’t wait too long though, otherwise you will be able to say I told you so, but that’s it..

How to Prepare! An Exhaustive List

In order for there to be a global economic reset, there has to be a market correction, meaning the market will crash in one way shape or form. There is no such thing as being too prepared. To put the current global economy in context, unlike the Great Depression of 1929 and the Great recession in 2007-08, currently every sector of the market is in a giant bubble, and global debt is the highest in world history. So it’s gonna be enormous and extremely disruptive at least for a season in our every day lives.

To start with, do you have essential or marketable skills? If you have not got very much money, make sure you have a marketable skillset that people will always need or that you can learn to do if you feel you have no essential skill people will need. For example everyone needs a car mechanic, a seamstress, a carpenter, plumber, farmer, etc. Next, you want to make sure you can have food security, shelter security, and energy security. Look what happened with COVID. Within 1 to 2 days grocery stores were bare and supply chains failed. You don’t want to be the person fighting people in the grocery store for the last thing there, so stock up on essentials and not just a week’s supply, but think for a year, and not just for yourself, but your family as well. If you don’t have enough money to do so all at once go ahead and start doing it incrementally. Maybe stock up on toilet paper too, for real, it was like having gold, and you could get a pretty penny for it too. The same goes for things like salt, pepper, sugar, and anything that makes food not taste bland. It will surprise you how much you and everyone else will treat it like gold as well. The best thing would obviously be to have a place with a sustainable garden, or farm animals like chickens that produce for you everyday if you have a small plot of land, and if you have a full fledged farm even better. During the Great Depression farmers didn’t have much money but they ate good every single day.

After food security, you need to make sure you have both shelter and energy security. If you rent, try to have enough money for multiple months of rent just in case. Also be sure you have a source of electricity and heat other than what is provided on the grid. You need to stay warm and be able to cook your food. Whether that be a generator, wood burning stove, solar panels, etc. Another very important thing to have is a lot of spare gasoline for your car and generator. Transportation will be key. Be able to protect yourself and your family. It is great to have what you need to sustain yourself for a long time, but if someone finds out you have supplies and they have a gun and you don’t, you and your family just went through all that work just to hand it over to someone else. It is better to have more than one as well because there is strength in numbers and people tend to group up when trying to find supplies because it gives them a better chance of forcing someone to give them what they want. In cities and suburbs this is especially true during times of crisis. To make sure this does not happen at all, don’t tell anyone you can’t trust not to tell someone else what you have! If you are able to, it would be best to have a home outside of town and if it is in a community that has the same values as yourself and family that would be ideal, but ideal is not always available. Have a good relationship with your neighbours. Two heads are better than one, but with a community you have an army looking out for one another.

Money

This is where things can go one way or another. In the case of hyperinflation like what is happening in Venezuela, cash becomes useless, but in the case of deflation like in the case of the Great depression cash becomes king. Regardless, it would be wise to have some amount of cash with you in a safe place that is not the bank. There are a few very real scenarios like the Great Depression where the banks simply do not have any cash in their vaults meaning you have no money, or like in the case recently with Greece they use all of your savings to help pay off the national debt. Buy physical gold and silver. The data shows that regardless of there being high inflation or high deflation, gold and silver maintain their relative store of value and especially in the case of high inflation will be invaluable to buy things you may need that could be scarce and a number of other things.

How To Protect Your Wealth Now

Start getting out of risky investments for starters, while the getting is still good. It is better to profit than lose it all, because when this bubble pops it’s all going down. Either liquidate those profits to be able to buy when the market is at its low point or re-invest it in something safe that even if it takes a hit during the crash will be able to weather the storm. Start investing in commodities like gold and silver as well things society needs to keep running like oil, gas, wheat, rice, and other things that are essential to live as all of these prices will skyrocket which is good if you get in now and get out high. We are not your financial advisers, but this is just some practical advise. Be sure to consult a financial adviser you trust.

Prosper

Have you ever wandered how the rich get richer after a financial crash? It’s because they always have a reserve of cash for when the market tanks because they are then able to invest in the stock market at historic lows and make huge profits. The same goes with land and real estate. People can’t afford it anymore or need the money and are willing to sell low, and even lower for cash or gold and silver on the spot. To be prepared for that scenario not only do you need to have that money ready, but also do your research on what you want to invest in when prices are lowest, whether that be stocks, real estate, etc. so that when the opportunity comes you are ready to pull the trigger. We pray this has been a blessing to you and spurred you into action in some or all of these areas. Adonai bless you and keep you!