This is my spin the the crypto market, and why I believe we will see see continued sustained moderate growth in DeepOnion (with some crazy price jumps here and there)
Within the last hundred years we have seen Governments around the world abolish the Gold Standard and replace it with fiat currency, this is the main reason why I believe the above to be correct.
So to start off with what the gold standard and fiat currency?
The gold standard was a simple way trading the value of gold via currency i.e. pounds / dollars. For example if you had a $100,000,000’s worth of gold that you wanted to save or trade you could place your gold in a bank, they would hold it and give you some dollars in return. Once you wanted to trade your gold for goods or services you could exchange your dollars to someone else both knowing that the dollars you are trading are directly exchangeable for a valuable metal. Eventually people stopped actually accessing gold directly and just used their currency instead , however the principle stayed the same the value of the currency was always directly linked to the value of gold. There would always be a limit in the amount of actual dollars available due to the fundamental fact gold is finite.
Then most governments decided to scrap this idea and move to something called fiat currency.
What’s the difference?
Well this is where things get confusing and down right unfair. Basically money is no longer linked to anything tangible, it is linked to demand! There is also no limit in the amount of currency that can be produced, and it is not printed by governments but rather privately owned banks (so when someone tells you they can print money they actually can).
So lets take a basic example, I want to by a house, its costs $100,000 so I ask a bank if I can lend it. The bank will then assess the value of the home and ‘print’ the money so I can purchase it brilliant (kind of). The bank we then require me to pay the debt back with interest, meaning they win (no surprise there then)as not only have they got their printed money back I also have some interest! The problem with this is the interest was never created therefore for you to be able to pay this back means someone else has to loose out!
25 years pass and I have paid off my house….
I then want to sell it, so someone else asks the bank to print some money which they do, the price is now $200,000. I get my $200,000 and the new buyer has to pay the bank back again with interest (the bank wins again) .
So for one asset the bank has created $300,000 and for every sale that continues to happen this same process will continue to happen, meaning more and more money is being constantly created out of thin air!
Crazy, but true.
So lets go back to gold, during the time that's passed (above) there has always been the same amount of gold (the banks can’t make that) but the abundance of money has increased significantly! With more money comes inflation, if in day 1 there was only $1 and 1 ounce of gold, and ounce of gold would be worth $1. In day 20 there is still 1 ounce of gold but $100 then the ounce of gold will be worth $100 ( assuming demand is the same ).
Still with me?
Basically the more money banks create the more money there is available therefore finite products are worth more.
So lets swap gold with DeepOnion, yep you got it DeepOnion is finite!
Meaning as long there is demand for $Onions the price will steadily increase as more money is created (especially in the boom years).
HODL YOUR ONOINS!
AND YOU WILL BECOME THE NEW GOLD DEALERS
(as long as there is demand)
Continue to create demand people, once established your investments will increase FOREVER!
Over to you
GO AND DOMINATE!