Prior to the modern era, people traded goods with each other based on what they grew, owned or made. As the size of traded goods grew larger, it became too burdensome to carry and the use of items of value, such as gold, silver, and other precious metals became much easier to use instead. In particular, gold was often used in the form of coins because of its scarcity and substantially higher value.
As the weight of gold and other coins grew heavy for most people to carry, the creation of standardized paper currency became popular around the world. Instead of the decentralized use of objects of value, governments began printing money and exerting control over supply to limit inflation. Paper currency was based on the value of some other tangible value and the paper functioned as a certificate of value equivalent to an asset-backed equivalent.
The global economic system then changed tremendously over the past hundred years. In the US, paper currency gradually replaced gold, and from 1971, it was the US dollar which was used as the replacement for gold. The US made this monetary transition based on the fact that there are limited quantities of gold in the world, and paper money is more convenient to carry and transfer.
However, the issue with fiat currencies, like the US dollar, is that they are centralized and regulated by governments. The value of these currencies is based only on the faith of the people and the promise of their governments.
There is no commodity of intrinsic value securing these fiat currencies- not now at least. The arrival of internet banking has reduced the usage of paper money, and now digital currency is used instead of paper which means states do not even need to print money.
Economists, especially from the Austrian school of thought, consider fiat money a socially and economically destructive scheme. They view government-controlled currency as coercive and generally prefer a free market approach to economies, devoid of regulation or outside interference.
When a currency is backed solely by faith and controlled by government, the value of the currency is susceptible to greater volatility during times of uncertainty. Knowing there is an asset backing a currency provides a layer of public confidence in the value of the tangible asset, beyond faith alone. And so, there is a need for an innovative monetary system that is backed by a scalable commodity with intrinsic value.
META 1 Coin Trust, and our leadership team – including Robert P. Dunlap and Nicole Bowdler – have the vision to offer a more stable, democratic, decentralized and scalable solution. META 1 Coin Trust has selected gold as the commodity to secure META 1 Coin, a Smart, Witnessed and Collateralized coin.
While other independent cryptocurrencies have emerged previously as a counterbalance to government-controlled currencies, their lack of an asset-backed structure has contributed to substantial volatility. The often-sweeping highs and lows of these cryptocurrencies’ value over the years has discouraged many people from owning them.
META 1 Coin has added asset assignment functionality to the META Blockchain, enabling blockchain-centric publishing and verification of assets while creating a new opportunity of monetization and liquidity.
According to Robert P. Dunlap, “Our selection of gold as a trusted asset backing META 1 Coin serves to instill confidence beyond mere faith in government. Regardless of the state of the economy, gold is a bulwark trusted by people since antiquity and will help add stability to market speculation and price of META 1 Coin.”