Crypto, Metal, Paper & Money

For the last three years I've been following the impending collapse of the US economy, the western banking system, the petrol dollar and the shrinking... (disappearing) of the American middle class. This portion of my education started with the "X22 Report" and then kind of spiraled out of control and now I listen to an array of "citizen journalists," economic zealots and entertainer economists, almost daily, most of whom believe we're pretty much screwed.

I'm just trying not to be too screwed.

A vast majority of these pundits favor precious metals, particularly gold and silver as "insurance" against devaluation of fiat/paper currency. Most of them site gold's 6,000 year history as a wealth store for this belief.

Now, "let me be clear," I am not much of an expert on anything. I'm largely a cynic and skeptic and I spend a good bit of brain power on the "what ifs" of life and think about "what could possibly go wrong?" and what I'd do if "the unthinkable" actualy happens. I'm not a professional economist and the info I'm basing this idea upon comes largely from the sources I've been influenced by via the YouTube network. I readily admit to listening to and being influenced by "wackos" (no offense.)

I've heard there are some out there that don't consider gold to be money, but rather a commodity, (same for silver.) I have never gotten what I consider a convincing explanation of what makes gold money other than its historical acceptance as such; as if the explanation that, "it's always been this way," is good enough. To go any deeper than this as to why gold is so valuable would require entering the realm of what Clif High calls "woo-woo."

Gold is further explained to be valuable because it is rare and desired. Basic economics of supply and demand. But what I don't get is why is it in such demand? It doesn't make much sense to me that something so rare would be used to facilitate trade among billions of people. And if (pardon the name drop) Bix Weir is right about gold in the Grand Canyon than that will make the precious metal significantly less rare and ergo, less valuable, less precious.

Essentially, it seems to me that gold equals wealth because we, the people of planet Earth, agree that it does and accept it as such. Or do we?

What if we don't?

At the moment one Bitcoin (digital currency) is worth roughly twice as much in US dollars as an ounce of gold. I've never seen an ounce of gold, but then again I've never seen a Bitcoin either. But when it comes down to wealth, money, any kind of trade... whatever we exchange is simply a tradable asset we exchange for someone else's energy. If we can use a copper coin or a bag of salt to compensate someone for their energy and in turn they can do the same, I suppose we have currency.

It dawned on me, as I began to understand how screwed the economy is, and how I could manage not to be completely screwed myself, that the only wealth I can truly, honestly and personally maintain is my energy. Which is also a matter of supply and demand.

The really "horrifying" (to metals people) thought I had, is what if crypto-currencies raise a significant challenge to the perception of physical gold/silver as money/wealth?

I learned from watching Mike Maloney's series 'The Hidden Secrets of Money', the seven qualities an entity requires to be considered money. It seems like the cryptos meet as many, if not more, than does metals; although the indestructibilty of cryptos may be in question.

What really cements a currency as money, in my mind at least - (remember, I'm no expert), is that the entities that use it agree that it's money, whether it's by decree of the state or the neighborhood factory that owns every home, general store and resource in that neighborhood and issues company script to their employees as compensation, (which can only be spent with that community.)

Between the widely reported-on manipulation of the paper metals prices by the free-media and the predicted collapse of the COMEX (the "worlds leading derivatives exchange") by economic sooth-Sayers, could physical gold/silver lose its prestige as wealth (money) among the west's (maybe the world's) younger, more cynical and digitally savvy population?

We're witnessing a rapid rise in value of digital currencies as the (spot) value of gold and silver are flat, or in decline. This could turn out to be a significant paradigm shift.

But then again, I'm no expert. Just a humble observer. I leave it to those who know more than I to analyze this idea. I'm probably way off.

Thanks for your time.