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The Next World Reserve Currency

by Brad Peters, Contributor, SGT Report:

The Next World Reserve Currency

I’m a software engineer who has worked for several of the largest tech companies in the world. I’ve traveled the world and started multiple companies. I have examined the bitcoin source code, and I have dug in to how the system works and what its possibilities are. I believe the potential for bitcoin is great than anyone suspects, even greater, perhaps, than Andreas Antonopoulos himself has realized.

I believe there is broad understanding that the US Dollar as the worlds reserve currency is in danger .  President Trump may be able to do a great deal of good and increase employment, but he may inadvertently (or vertently) hasten the move from the USD as reserve currency.

If Trump implements protectionist measures, reduces the trade imbalance, or decreases government spending, any of these will curtail the creation and spending of US Dollars into the world economy. Fewer dollars world-wide means countries tied to the dollar are unable to repay their dollar-denominated debts, and they have a choice: Either move away from the dollar, or their economies collapse.

What are the powers-that-be going to advocate as the next reserve currency? Almost certanily the SDR. That will be inflated away like any other fiat currency, and undoubtedly will be electronic, enabling worldwide spying on transactions, negative interest rates, control of what can be purchased, and all the other evils the current money masters wish to bring to bear.

So, the question is, with what do we, the people with our eyes open, advocate as the replacement? Gold and silver, right?

Precious metals provide an amazing store of value, and I love both. But they suck as transactional units. I can’t email a gold coin, and hauling around even $15,000 in silver to buy a car requires a wheelbarrel. And if we the people allow some country to create a new currency backed by precious metals, that currency (undoubtedly electronic) will be used to clamp down and control the people.

A gold-backed government-controlled currency does NOT provide a real answer.

But bitcoin does.

Bitcoin circumvents all those problems, by being a transactional system which operates outside of government and central banks. Anything can be transacted, and the value of that thing is determined by the people. You might puchase bitcoin using dollars… or gold… or goats…

Critically, banks and governments cannot control or manipulate the transactional system.  Regulate, perhaps, at entry/exit points, but internal transactions cannot be manipulated, and governments and banks cannot print bitcoin. Therefore, they cannot induce inflation to steal wealth and purchasing power. They can still tax income, just to be clear. This is not a tax avoidance system – and that’s why governments have not simply banned bitcoin.

Other bitcoin attributes:

– Near-zero remittance cost across all currencies worldwide

– Uncontrolled by any one entity or group

– Cannot be created or destroyed (except using the mining algorithm)

– Bitcoins are finite in number, 21 million max

– Trustless network and money exchange – ie, no 3rd parties needed, ever

As the US Dollar loses its reserve status, the entire world is going to see lots of inflation or deflation, depending on local debt structures. Eventually, I believe the US will adopt a Domestic-only dollar, as predicted by Jim Willie of The Golden Jackass.  Inflation in the domestic dollar will climb rapidly, demand for bitcoin will go up, and bitcoin price in dollars will go up massively. As some point, it may well be that you can only purchase bitcoin for precious metals or other tangible forms of wealth. What do you have then?

An international, gold-based currency which is independent of banks and governments 

Also, you have true FREEDOM, the likes of which a simple gold-backed government-controlled currency could not provide. For example, a goat seller in Madagascar might sell his goats to a NY businessman for a gold coin, with bitcoin being the transactional medium, and the government couldn’t do a damn thing about it. And the goat seller wouldn’t even need a bank account! Or you could buy eggs from someone down the street, and no one could stop you. That is freedom.

It is my opinion that the powers-that-be are going to attempt to switch the world to the SDR. The people of the world, who just want to maintain control over our own lives and not have our wealth stolen through inflation, deflation, negative interest rates or any other financial balony, should advocate for bitcoin far and wide.

Finally, we have a REAL solution to the reserve currency conundrum. Bitcoin will become the foundation to a transactional system with the benefits of precious metals, but also the convenience of modern technology.

Bitcoin = Cash * Gold. Tangilble, yet transactable.

Contributed by Brad Peters

Software Engineer, Freedom lover, and Prepper-in-training

Contact at: [email protected]

My continuing thanks to Sean at the SGT report for his dedication to the truth, and to all the other truth tellers out there. We all know who the real-fake news is.

Help us spread the ANTIDOTE to corporate propaganda.

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74 comments to The Next World Reserve Currency

  • fonestar

    Great article thanks for posting! I’ve been saying the same thing for years now… they will push the SDR but the people will have already chosen the superior product, Bitcoin. It’s amazing that Bitcoin is 8 years old now and the vast majority of people still fail to understand the implications of Bitcoin. BTW, I just tried to cash a cheque for a little over $5,000 and the bank withheld $3500 of it for 5 business days. Who the hell do these people think they are? There is not such minimum and maximum transaction in Bitcoin land.

    • KRELL427

      I wouldn’t doubt that block chain technology will growing, as for Bitcoin? May turn out to be the big boys test mule. http://www.reuters.com/article/us-blockchain-dtcc-cds-idUSKBN14T1EA

      • Eric

        This article fails to see how Bitcoin is a total scam perpetrated on the public to convince them from storing their wealth in Gold and Silver.

        You can’t email a gold coin just like you can’t email cash or check. Hauling around $15,000 in silver in a “wheelbarrel” to buy a new car? Is that the extent of people’s creativity? There is no reason to buy bitcoin unless you want your currency to be volatile and unstable.

        Bitcoin is a ponzi scheme with a fair value of zero.

        Goldmoney solves all of these problems.

        https://www.goldmoney.com/

      • fonestar

        Look at the FACTS Krell. The Bankers LOVE Blockchain and they HATE Bitcoin.

        They have been throwing around names, organizing meetings and blah, blah, blah for three years now with their supposed “Bitcoin killer”. And so far I haven’t seen a damn prototype?

        And I am not expecting to see one either. Much like Canada’s “Mint Chip” digital currency this one will also fall flat on its face. FFS… look at Credit Cards? They had FOUR DECADES to sort out all their interoperability bullshit and they STILL can’t do it!

        I am not concerned about their Blockchain at all. They are too disorganized, too greedy, too short-sighted and frankly too dumb to make a “Bitcoin killer”.

        • KRELL427

          I will keep reading, what is the link to Thomas Edison,dd they expand on his idea.

          • fonestar

            You always try and play your opponents position. The establishment would be better off compromising and controlling Bitcoin users rather than trying to re-create a Bitcoin knock-off.

            • Eric

              That’s why the “establishment” created Bitcoin and put an NSA backdoor into it.

              If they really wanted to kill it, they could do so easily. But they don’t because so many idiots love it and think they are getting rich as shit, while the elite stack the bullion, art, real estate, etc.

              It’s easy to fleece sheep. They’re very naive and dumb.

              • fonestar

                Where is the “backdoor” in it then you fool? There is no Bitcoin president to approach like NSA does with Cisco Systems or IBM. You don’t have a damn clue what you are talking about.

                • Eric

                  There is a record of every transaction on the blockchain. If you think it’s anonymous, you are naive.

                  When are you going to buy my magic beans?

                • fonestar

                  They are *BITCOIN ADDRESSES* and contain no personal information!

                  What is that thing about not opening your mouth to be thought a fool?

                • Eric

                  Right. I’m sure they have no clue who fonestar is or where he lives.

                  Geez even I know that.

                • fonestar

                  Do “they” (your imaginary global government) also have a list of all Bitcoin addresses I have used? Do they have a list of the quadrillions more I can generate by clicking my mouse?

                  Again, you have no damn clue what you are talking about.

                • Eric

                  Probably. They are probably laughing at you for all the useless junk you keep buying too. I know I am. 🙂

    • JMiller

      Most banks are not like yours fonestar. My two banks that I have an account at would make the full $5000 amount available the next business day. I also can make an electronic transfer the same day on any amount that is in my account. Not that big of a difference than Bitcoin.

      • Rdawg

        Also, banks suck. Credit Unions are the way to go.

        • JMiller

          Rdawg,

          Sorry but my local community bank is better than most credit unions. Better capitalized than most credit unions. No derivatives like some credit unions. No subprime loans like some credit unions. There are hundreds of banks that are just as good as the best Credit Unions.

          • Rdawg

            Again, I should have been more specific. Let me list some of the banks to avoid:
            Citibank
            Wells Fargo
            Bank of America
            Chase

            Yes, some small community banks are good. I happen to belong to an exceptional credit union, have done business with many different credit unions, and prefer them over the big banks.

            You are a bit of a stickler, yes?

            • JMiller

              Rdawg,

              Just want to be accurate so people are not mistakenly misled into believing that all credit unions are better than any bank. One needs to examine the best option available for them. And I too would prefer most credit unions to any of the big banks.

              • Eric

                Just to add my 2 cents, I agree with both of you.

                However, if there was one big bank that survives all this it will be the morgue with their large Silver position. Shittybank and Bank of America should definitely be avoided.

                While I still use one of the big banks, I never keep more than 1-2% of my “money” in there. Local credit unions and small community banks that don’t have brokerage options or derivatives on their books should be okay. Check their balance sheets if you are concerned.

                They already flooded the system with liquidity. The odds of the banking system dying anytime soon is not as likely as the fiat currency itself having a major devaluation. The USD has the furthest to fall.

    • Rdawg

      “…the vast majority of people still fail to understand the implications of Bitcoin.”

      I disagree. I think the vast majority of people haven’t even heard of Bitcoin because it doesn’t really offer anything of value, and thus has no traction. Of the people who have heard of Bitcoin and looked into it, most have rejected it for the same reason.

      Why do central banks buy gold, but not Bitcoin?

      • fonestar

        The “vast majority” of people also don’t have a need to get $1 Billion into Tehran tomorrow. Go to your local branch and tell them you want to send the supreme Ayatollah $1 Billion for private spiritual reasons. They look at you with a strange stare. Later in the evening some nice gentlemen with dark sunglasses and ear-piece receivers pay you a visit at your house. But you insist to them that it is your human right as a natural netizen of this planet to be able to transfer value instantly to anywhere for any amount. They don’t see it your way exactly. You notice that there are a lot of repair vans outside your house after that. Your attempts to board a plane to go visit the family later in the year at Christmas don’t really work out either. Hmmmm….

        NO YOU ARE RIGHT… “most people”. And thankfully we don’t rely on “most people” to see what others do not see or to jettison us uncomfortably into the future.

        • Eric

          How many billions have you sent to the ayatollah fonestain?

          More proof that Bitcoin is used by criminals and terrorists.

          • fonestar

            It’s none of your business who I send Bitcoin to or what amount. Only a statist creep would want to know what other people are doing.

            • Eric

              hey dumbass,

              I don’t care who you send blipcoins to. Send it to muhammad for all I care. I was simply pointing out your strawman argument.

              Only a foolstar would sell Gold for bitcoin.

    • mike

      You and me both…Think everyone should own a little. A little is a massive fortune later.If you own just 1 at some point it will be priceless whether or not you think it’s real money. For less than 1 oz of gold tou can have 1 complete btc.

  • Rdawg

    “…hauling around even $15,000 in silver to buy a car requires a wheelbarrel”
    Ugh. First of all, what the fuck is a wheelbarrel?
    Second of all, this guy says he is a software engineer and he can’t envision how physical gold and silver could be used in an electronic payment system like, oh I don’t know, BitGold?
    In my state of Utah, gold and silver are legal tender. It is not at all unusual to see folks advertising stuff for sale and accepting gold or silver for payment.
    By contrast, I have never, ever seen anyone advertise taking Bitcoin. Never. I keep hearing about how you can do all these transactions all around the world with BTC, yet hardly anyone seems to even know it exists.
    I’m not really against BTC per se, I just don’t see the benefits because there is no tangible asset underlying it. As Gertrude Stein once said of Oakland: “there is no there, there.”
    Queue fonestar flinging shit and calling me a Luddite in 3, 2, 1…

    • JMiller

      Rdawg,

      I think that you mean certain gold and silver coins are legal tender. Not just any form of gold and silver. From what I have read, in 2011 Utah passed a law making U.S. Mint-issued gold and silver coins (such as the American Eagle) legal tender.

    • Hal

      Yea its silly. PM can be used/transferred electronically just as FRNs or BTC. All thats needed are banks or depositories to issue credits based on underlying physical. This type of system would not only keep the money supply consistent with real world production of a commodity (as it should be), but it would allow seamless harmony between those transacting/saving soley in the private physical world with those who wanted to use banks and/or the electronic world.

      • fonestar

        “All thats needed are banks and depositories…”

        FFS what the hell is wrong with you Hal? Did that last orbit go too close to the sun and fry your circuitry? The ENTIRE POINT as in the ABSOLUTE RAISON D’ETRE for Bitcoin was to get rid of banks, to get rid of depositories and to get rid of third parties!

      • mike

        The problem is you would have to keep the same institutions and bureaucracy and they have lots of employees to pay.Also the settlement banks would not actually deliver pms to any country just move the material from vault to valault. There would lots of opportunity to misrepresent holdins.The point of btc is all of that can be circumvented. You would also have to give the pms a fiat value, they could no longer trade in the free market for obvious reasons I have stated before…Dont feel like writing a book.
        I know you hate BTC because you still do not understand it fully.I am not trying to convince you of anything.Just ask yourself if you think the world is still evolving or are we at the pinnacle of human civilization. If you answered the latter than btc is not for you.

  • Craig Escaped Detroit

    Bit-Tulip Mania. At least the tulips were something real and could be planted and grow. (but not edible).

    In ancient times, in some places, they traded seeds as money. We may see some of that again someday.

    I would not be too shocked if that was already happening in today’s India, Venezuela, Zimbabwe, Yemen, Syria, Greece, etc.

  • Johny Comelately

    I’m almost ready to buy my first Bit Coin. It occurred to me that on the 1988 Economist magazine cover, the Phoenix is carrying a gold coin. While the Phoenix is a creature that rises from out of the ashes, it is also a bird. Birds can take flight, travel distances fast and represent mobility.

    Bitcoin can very well be paired with gold on the block chain and make it transactable over distance. It Bitcoin and gold could be symbiotic and together make up the new world currency.

    • Johny Comelately

      Also, if you look at the gold coin on the Phoenix, it has a 0 and a 1 (the 1 is placed over the 0). 1 and 0 are bits and this could be symbolic of a digital currency that is enabling gold to be transactable over distance.

    • fonestar

      I can make way better conspiracies “on the fly” than you ever could. Yours don’t even make sense. Try this one…

      The NSA/CIA are investigating digital currencies in the 1990s. They believe that it is only a matter of time before a decentralized currency comes into existence. It is decided that it will be beneficial to have first movers advantage on this. They also estimate that this currency’s rise will coincide with increasing anti-establishment rhetoric and sentiment, rising populism. This new currency should play into this environment.

      [WHERE MY THEORY DIFFERS]

      ….so when the time did come Satoshi’s true identity was discovered. He sent unencrypted emails to and from Gavin and others including Julian Assange. It was a trivial matter tracking down Satoshi and he was paid a visit. Now Satoshi’s coins are compromised. But it is decided to continue to play along with this as it is a working currency that can be put to use now. It is decided to collect Bitcoin’s biggest players and compromise, say the biggest 10,000 users. These people are the early adopters and hold the most Bitcoin. You don’t need to perform network analysis on these people to track them down because they are making Youtube videos of themselves and bragging about their gains online. They’ve ratted themselves out. Many of these people are compromised, blackmailed by all the usual methods or threatened to play along. Now the establishment holds the Satoshi hoard and Bitcoin’s biggest players. So now they can re-create new “Warren Buffetts” and new “Bill Gates” in this new Bitcoin paradigm as the dollar world fades into history. They can create credit and lending facilities around the pool of Bitcoin that they have amassed. The fact that Bitcoin was limited to 21 million coins doesn’t really matter anymore because the new exchanges serve as a dark multiplier for Bitcoin and transactions not done on the blockchain.

      Some true crypto-anarchists object to what Bitcoin has become but the truth is that most people are happy with the new fractional-reserve-Bitcoin system that allows them to buy what they want today. The establishment has successfully made the transition from the dollar world to the Bitcoin world.

      • Eric

        Fractional-reserve-Bitcoin system?

        Bitcoins are not held in reserve by central banks.

        Bitcoin is a lot of things. But you can hardly buy what you want with it. Unless you want more patio furniture.

        • fonestar

          Did anything I just wrote register in your brain? Exchanges in China are already creating a fractional-reserve-Bitcoin system. Central Banks can easily try and do it too.

          • Eric

            Whoop tee fucking doo. It’s still not a long term store of value. That’s just what everyone needs…another fractional reserve system to replace the old one.

            The groceries I bought today were not payable in Bitcoin. Bitcoin was not accepted at the gas station when I filled up my car with fuel. In fact, I haven’t met a single person who has ever even heard of Bitcoin.

            Probably because it’s a total scam to keep everyone away from real tangible wealth.

            BTC down 6.55% YTD
            Silver up 4.6% YTD

          • mike

            I have written lots of long explanations to Eric on all sorts of subjects so I will answer your question to him..No none of it registered.Eric is a PM only partisan. Not interested in entertaining ideas about anything other than PMs.

            • Eric

              PMS = premenstrual syndrone

              Gold and Silver = PRECIOUS metals

              I like many other things besides Gold and Silver. I like good food, high quality health care products, coffee, ribeye steaks, platinum, copper, nickel, zinc, fresh squeezed orange juice, grapes, berries, and a lot more.

              I just don’t like people trying to scam me. The thing is you have to make sure your brain is functioning properly before registering anything in it. Otherwise you’re just filling it up with more useless junk.

              Early adopters of Bitcoin take something that has NO INTRINSIC value,
              Build up the PERCEIVED value to an unsuspecting public,
              Only to sell that scam to the greater fool for something that has REAL value.
              Bitcoin crashed 94% in 2011, 51% in 2012, 23% in 2013, another crash of 80% in 2013, and 83% throughout all of 2014.
              Bitcoin is NOT sound money.
              http://themerkle.com/top-5-bitcoin-crashes/
              http://kernelmag.dailydot.com/issue-sections/staff-editorials/11338/bitcoin-ponzi-scheme/

              The scam called Bitcoin
              “WASHINGTON — Sometimes it’s hard to tell whether bitcoin is more like Ponzi scheme or a pyramid scheme.
              Whatever it is, though, it isn’t a currency. It’s a tech stock.”
              http://www.dailyherald.com/article/20150613/business/150619551/

            • fonestar

              Eric is not capable of owning 2 things at once.

              It seems that repeating “intrinsic value!” and “only gold is money!” enough times leads to brain damage.

              • Eric

                Fonestar doesn’t know how this story ends. There is no such thing as the Bitcoin standard.

                It is certain that he not only doesn’t know anything about Austrian economics or the history of money, but the god of his new religion never existed at all and never ever will. There is no Satoshi Nakamoto.

  • colin

    Genesis 13:2
    Now Abram was very rich in livestock, in silver and in gold and in Bitcoin

  • randy0302

    It’s not complicated, when fiat dies gold, silver and Bitcoin will fly!
    Gold money is the future of precious metals. We will all have a personal gold standard. Accounts will contain gold and silver and we will use digital means to transact.
    Bitcoin will easily top $1 million.

    People get confused about whats real and not. If you can buy a goat with silver or Bitcoin they are both real.

  • KRELL427

    George Webb interview on Project Camelot https://youtu.be/dAiMyaknxv0

  • Don

    Thanks for posting. Once you understand what blockchain truly is, and what it means for the future, it stuns you. A decentralized means to record EVERYTHING. Accessible to all, and constantly verified by everyone. Deeds, licenses, certificate, transactiin,voting records, etc…

    • fonestar

      Good points Don. And that’s also why a banker-blockchain will fail… because it’s not a real blockchain. They want their own blockchain that is CENTRALIZED so they can manipulate it at will. Ie, it defeats the whole purpose of having a blockchain to begin with.

      • Don

        Yep, the blockchain is key. BTC will essentially be backed by information. All the recorded necessities of life. Without the old County, gov, and even courthouse buildings.

        And right now some of these idiots could embrace it and realize they (or their kids) could be contributing to the future by writing code, making an app, influence blockchain in a positive way. But they just whine and pick strawman fights.

        • Eric

          If Bitcoin was backed by useful information (all the recorded necessities of life), Bitcoin users would know it’s a scam to keep you away from real tangible wealth, i.e. physical Gold and Silver.

          If you want to contribute to the future, grow some food and be a real producer and not just a consumer. There is money and then there are money substitutes.

          “What is needed for a sound expansion of production is additional capital goods, not money or fiduciary media. The credit boom is built on the sands of banknotes and deposits. It must collapse.” -Ludwig von Mises

  • Don

    Like it or not, this is the future. You can squabble over au,ag vs btc. Or learn about it. https://youtu.be/1sOxtBiBpE4

  • Paul T

    The next world reserve currency…the same currencies that’s always stood the test of time. Gold and silver

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