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Abstract
What money was. What money is. What money can be. An exploration of the future...
Gold treasures have been found dating from as far back as the 5th millennium BC. Its use as money is rooted in its rarity and consistent appearance throughout history as a display of wealth, power and status. Gold and silver bullion circulated as currency in many countries before the introduction of paper money. Once paper money was introduced, currencies still maintained an explicit link to gold (the paper promise being exchangeable for gold on demand). By the late 19th Century, many of the world's major currencies were fixed to gold at a set price per ounce, under the ‘Gold Standard’ and this persisted in different forms for about one hundred years.
Governments universally debased their currencies without the backing of gold more than 45 years ago. Central banks in both the world's developed and developing countries have repeatedly failed or have been bailed out by their governments by the issuance of more and more fiat currency.
The net result is increasingly high leverage, negative interest rates, substantial indebtedness, currency devaluations, serial defaults, and economic collapse throughout the world.
Bullion functions as a long-term store of value and has maintained its real purchasing power in terms of commodities and intermediate products for thousands of years. Bullion remains the ultimate dollar hedge and is the only global currency that is no one's liability. Indeed, bullion is 'pure money'.
NFTs are making waves in the world of finance and reserves. With accelerating digitisation, NFT innovations can have an even greater impact on how we store wealth for future generations to come - whether that means by transforming traditional drivers like network effects or trade linkages between countries' economies. Institutions which currently exist around banking systems have the potential to be replaced by NFT transactions.
The digital world presents the perfect opportunity to right the errors in the current financial system, which is what Gold Silver Standard aims to achieve. Once again, money can be based on something unbreakable, unlike the current 'government promise' backed FIAT system.
Taking this a step further, finally, we can introduce real value into the Metaverse, using the power of gold and silver backed NFTs. Without a doubt, traditional industries will run on blockchain technology. Software is eating the world and the world is digitising everything. The adoption rate of this technology is quicker than that of the Internet. It is only a matter of time until NFTs are used regularly. Whether you believe it not yet, we are packing up and moving into the Metaverse, and the pace of this move is exponential.
What if we could create and write the rules for THE store of value for the Metaverse? A system where the standard is underpinned by the same currency that society has recognised for millennia. A structure where we get to enjoy the security and stability of a timeless asset, and the benefit and utility that blockchain technology provides. Welcome to Gold Silver Standard, the Gold Standard of the Metaverse.
Real and digital assets becoming one.
Currently, there are two methods by which to purchase precious metals. The first is to visit your local bullion dealer and make a physical purchase. The second is 'paper' gold and silver using various contracts such as CFDs. However, by utilising the blockchain, Gold Silver Standard was able to introduce Gold and Silver Standard tokens (AUS and AGS). AUS and AGS are 100% backed by fully allocated, audited, and insured physical metal. Anyone, anywhere in the world could purchase this token and know that it holds intrinsic value and is pegged to the gold and silver price.
Typically, moving large amounts of wealth in stable assets (i.e., gold and silver) is a lengthy and expensive process that leaves you exposed to market risks and opens up security holes. AUS and AGS ensures that you are protected by the Ethereum blockchain when transferring or transacting.
The AUS and AGS tokens have come a long way since their inception as an ERC-20 token. The natural evolution of the project was to create a series of gold and silver-backed NFTs. Much like how large bullion minters will produce limited runs of special coins, Gold Silver Standard NFTs give the underlying precious metals artistic value even rarer than the metal itself – with enhanced visuals and a professional tone.
Throughout human existence, gold has represented wealth, opulence, status, prestige, and safety. Gold is so deeply engrained in the way we think that it is second nature that we understand these things. These attributes can now immediately be applied to the Web3 world.
Gold has a home in the Metaverse. How we are making it count.
Web3 is an idea for a new iteration of the World Wide Web based on blockchain technology, which incorporates concepts such as decentralisation and token-based economics.
For the full potential of NFTs and DeFi to be reached, we need a seamless way of transferring value between the real and digital worlds – especially considering that the line which divides these two worlds is becoming more dissolved by the day. The problem of "How do you transfer value in between these worlds?" will only grow larger as the NFT space grows.
So, how can we fast track the future of this technology? Well, we need to combine real-world scarcity with digital scarcity. This is a big deal. It enables the NFT world to piggyback off a financial system that has existed for millennia.
Gold and silver backed NFTs will also easily allow institutional money to enter and accelerate the transition to the Metaverse. Right now, the NFT space is dominated by retail investors. Institutional money is waiting for an investment that is scalable and allows them to enter a developing market with minimal risk. Not only does Gold Silver Standard provide onramps for institutions, but it also upholds the original philosophical ideologies which inspired the crypto and NFT revolution. Indeed, Gold Silver Standard is unifying the NFT community under the vision of financial freedom.
Chainanalysis.com
NFT technology also makes it possible to privately value and monetise data (crypto and NFTs backed by Gold Silver Standard) and transfer it securely to willing buyers on a decentralised marketplace in exchange for other NFTs. Gold and silver backed NFTs thus have the potential to become a global digital store of value widely used by both individuals, and product providers. Considering the Web3/Metaverse market is still without a clear solution, Gold Silver Standard's home in this emerging world only becomes more important!
Source: Medium.com
Current market trends also show that developing countries are eager to enter the NFT space. Gold Silver Standard is giving millions a chance to finally compete fairly in an ever-evolving global economy.
Source: Finder.com
This isn't easy...
The Metaverse aspires to be co-created and built responsibly with integrity, safety, and privacy at the centre of its foundation. To support this framework, open standards and interoperability will be core to the Metaverse with new forms of governance likely to emerge. This includes a new form of exchanging value. A critical part of ensuring this is achieved is by enabling the communities to transaction value seamlessly, which is where Gold Silver Standard NFTs step in.
Below is an illustrative scenario analysis around what percentage of the global digital market will shift towards the virtual world and apply a range of how the Metaverse may expand the total addressable market. In the most bearish case, roughly 15% of the digital economy will shift towards the virtual world. The potential Metaverse market is predicted to become a $6.91T-$$9.31T industry.
Future innovations using NFTs, such as DeFi lending/borrowing, fractional ownership, crowdfunding, and more, have the potential to transform many, if not all industries. Without a doubt, it will democratise asset ownership. Few traditional institutions allow gold or silver as collateral for lending or provision of a yield. Gold Silver Standard NFTs and DeFi lending squash this traditional challenge, opening up lending to all Gold and Silver Standard NFT holders. Additionally, Gold and Silver Standard NFTs allows precious metals to have a home in the beautiful and interconnected NFT network. This means that even more features and benefits can easily be unlocked in the future.
There will be many other developments in this decentralised economy that have yet to be imagined. What we can say is that it will be a much more transparent and direct type of market than what we are used to.
Source: Nature.com
Global lockdowns caused by the Covid-19 pandemic have accelerated the transition to the Metaverse. Many individuals have adopted a more sedentary lifestyle and sought alternatives to maintain social connections due to prolonged periods of confinement and being deprived of interaction. As a result, people have engaged in various online Metaverse platforms to increase social engagement, which led to an exposure to NFTs.
Global lockdowns caused by the Covid-19 pandemic have accelerated the transition to the Metaverse. Many individuals have adopted a more sedentary lifestyle and sought alternatives to maintain social connections due to prolonged periods of confinement and being deprived of interaction. As a result, people have engaged in various online Metaverse platforms to increase social engagement, which led to an exposure to NFTs.
Looking at web traffic data for popular NFT marketplaces to examine where in the world most NFT users are located, we see a strong mix of web visits from several regions, with Central and Southern Asia, North America, Western Europe, and Latin America leading the pack. The numbers suggest that like conventional cryptocurrencies, NFTs have achieved global popularity, with no region making up more than 40% of monthly web visits since March 2021. Notably, the dominant jurisdictions have a renowned affinity for gold.
Last modified 1yr ago