May I suggest that you research the facts before you make these broad claims.
As a long time holder of Crypto Currencies as well as an investor and a technologist involved in Blockchain and Distributed Ledger discussions with ANZ Gov / Businesses, I can assure you that this is not a ‘Dotcom’ concern.
As with currencies such as the US$ corrections occur and the value of currencies will rise and fall d pending on economic conditions. The same will occur with digital currencies.
To respond to your statement......
1. The Chinese are not buying up gold. If you review the current Chinese Gov regulation regarding currency and precious metals. You will know that the only gold Chinese purchase is ornamental gold. Gold is not an ideal commodity for investment and if you look at its return to investment it is very low.
2. No country currently backs its currency with gold, but many have in the past, including the U.S.; for half a century beginning in 1879, Americans could trade in $20.67 for an ounce of gold. The country effectively abandoned the gold standard in 1933, and completely severed the link between the
dollar and gold in 1971.
3. In a recent article it has been stated -
The Reserve Bank of Australia could join the likes of Estonia and Lebanon in creating a cryptocurrency based on the Australian dollar, to reap the benefits of technology like
the blockchain but with more stability than other well known currencies like Bitcoin.
The RBA
has already been approached by interested startups to create this new digital currency, known as the “DAD” or Digital Australian Dollar.
In contrast with other cryptocurrencies a state-backed digital currency has the advantage of being backed by the government as in
fiat currency, but at the same time has the technological advantages shared by other cryptocurrencies.
A digital Australian dollar could remove the role of middlemen and create a cheaper electronic currency system, while at the same time enabling the government to fully regulate the system.
It would also allow transactions to settle faster (several minutes to an hour) than the traditional banking system (several hours to several days), especially in a situation where an international payment is involved.
