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What is the “Gold Standard”?

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The US dollar used to be pegged by gold bullion held by the US Treasury.

For every printed dollar, they had to peg an equal value of gold.

It was the way of securing the value of the dollar.

However, in 1971, the relationship between gold and the US dollar was cut.

What do you think did happen after that?

 

As you can see on this example from the Federal Reserve, the value of gold is growing while the value of the dollar is consistently dropping.

Why the value of the US dollar is dropping?

Because, every single day, they are printing more and more dollar bills, much more than the value of mined gold. 

If the US is printing more and more money every single day, the supply is growing while the demand is almost the same or let’s say that it is growing also but not at the rapid pace as the supply.

All this is going to lead to a decrease in the value of dollar bills every single day. 

A century ago, the value of one dollar bill was, actually $1.

Today, the value of one dollar bill is worth just around 3 cents.

Do you think this trend can last forever? 

Do you think that people will stay blind and ignore this growing problem?

Are you still going to believe and trust the third party to take care of your money and the future of your family or are you going to take responsibility for your future and secure yourself?

Once you realize that U.S. dollar is “backed by” “the full faith and credit of the United States, you are going to start thinking of your future. 

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