The US Dollar has lost most of its value. This is why most of the goods and services you purchase have increased. This may well be a sign of things to come.
In 1915, $1.00 could buy what $28 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 $30 trillion dollars. That’s $91,047 per citizen and $207.900 per taxpayer. On top of that, budget deficits are projected to exceed $9 trillion this year. And the government has unfunded future obligations in the form of Medicare and social security payments of $130 trillion.
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 the monetization of the debt. Simply keep inflation of 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 as the USD loses value, other currencies pegged to the USD will also lose. Those that are not pegged to 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, 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 50% on a regular basis.
But what about a cryptocurrency backed by a real asset? SilverToken is a token that represents physical silver that is securely stored in private vaults. The tokens are redeemable for real silver and are therefore directly equivalent to physical silver. SilverToken is a safe haven for investors during periods of volatility, as well as a means of protecting wealth from the inevitable devaluation of the US Dollar and other government currencies.