'Cryptocurrencies and Precious Metals Can Co-Exist,' Explains Ron Paul

Just recently the notorious libertarian and Austrian economist, Ron Paul, released a paper that discusses the world’s issues with central economic planning. In the report, Paul goes into vast detail on how precious metals and cryptocurrencies can co-exist in order to prevent current market monopolies from “rigging the economy.”

Also Read: US Authorities Seize Over $20M in Crypto in Massive Darknet Crackdown

Ron Paul: “Ultimately, the Market Proves More Powerful Than Government Manipulation of Economic Events”

Ron Paul is a very popular libertarian that ran for the U.S. presidency a few times, but he has always proposed some contrarian opinions unlike any other politician today. For instance, Paul constantly tells the American public that they should “end the Federal Reserve,” or at the very least audit the private bank and find out how it has been operating over the years. Furthermore, Paul fundamentally believes our money should revert back to the ‘Gold Standard,’ and feels it is “a fallacy to believe the U.S. has a free market economy.” Paul’s unique libertarian teachings have inspired a great number of people to embrace free-market economics and question the current way governments operate.

In Paul’s latest paper, The Dollar Dilemma, he details just how bad the monetary system is today, and explains how precious metals and cryptocurrencies can co-exist to help fight against the decaying global economy.

“The economy is run by a conglomerate of individuals and special interests, in and out of government, including the ‘Deep State,’ which controls central economic planning,” explains Paul’s paper.

Rigging the economy is required to prevent market forces from demanding a halt to the mistakes that planners continuously make — This deceptive policy can last only for a limited time — Ultimately, the market proves more powerful than government manipulation of economic events.

Cryptocurrencies & Gold: A Combination of the Old and New Monetary Practices

Paul further asks whether or not precious metals will serve as a better system for the future or if it will be the concept of cryptocurrencies. He believes the proper way to assess the situation is to make certain that “free people in the marketplace make the choice whether the use cryptos, absent the dictates of government and central banks.” Paul emphasizes the process “requires the rejection of the use of force and fraud for any chance of achieving success.” In order for cryptocurrencies to challenge the history of precious metal acceptance it will take a “significant amount of time to reach consensus,” explains the former U.S. senator.

“The marketplace is quite capable of sorting out the advantages and disadvantages of cryptocurrencies and precious metals. The biggest challenge will be to get the government out of the way to allow this choice,” Pauls paper details. “It’s conceivable that cryptocurrencies, using blockchain technology, and a gold standard could exist together, rather than posing an either-or choice — Different currencies may be used for certain transactions for efficiency reasons.”

The desire for storage and speed can make a difference in choosing a currency. It appears that decentralized ledger technology will also be useful outside the sphere of digital currencies. A combination of gold and crypto will prove to be a lot more achievable than getting people to adapt to a totally new concept of money.

“A Modern Day Currency Needs an Enlightened Attitude About What the Proper Role for Government Ought to Be in a Civil Society”

The paper further states that each type of money may serve different needs and cryptocurrencies may be able to help with privacy, especially when it involves larger transactions and settlement across greater distances. Paul says the biggest challenge right now for digital currencies is satisfying the prerequisites of a ‘standard unit of account.’ In Paul’s view, a workable currency must keep the public confident and the monetary unit needs to be easily exchanged and hold reliable “real value.”

“For society to advance to the point of accepting a truly denationalized monetary system, a significant amount of energy will be required to rein in the power of government authoritarians — A modern-day currency needs an enlightened attitude about what the proper role for government ought to be in a civil society,” Paul’s paper reveals. “We can use technical science for advancing civilization, but no one can ‘own’ it — As valuable as wheel technology was, no one ever bought and sold this technology as a piece of property.”

The question that can only be answered by the marketplace is whether or not blockchain technology is just another great scientific breakthrough, or can it, in combination with cryptography, become a functional currency? The basic question boils down to this: Do all new currencies need to be based on something tangible?

The full transcript of Ron Paul’s paper The Dollar Dilemma can be found here on Mises.org.

What do you think about Ron Paul’s latest paper about precious metals and cryptocurrencies co-existing while the dollar self-destructs? Do you agree with Paul’s views on money and cryptocurrencies? Let us know your thoughts on this subject in the comment section below.

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