Biden Administration Placing Guidelines For Digital Currency
It’s no surprise that cryptocurrencies have been a conversation starter in the financial realm. Ever since Bitcoin was incepted in 2009, the thought of the dollar not being used anymore was a far thought that was overlooked completely. Fast-forward to 2016 and bitcoin took an unbelievable leap in the future of digital currency as it grew tremendously, returning heavy ROIs to investors. Due to the success of Bitcoin, more and more cryptocurrencies were incepted as well as blockchains. This morning President Biden signed an executive order giving access to the federal government to be creative with a strategy for assessing digital assets like cryptocurrencies. The executive order was also directed towards the Federal Reserve to begin research on creating a digital dollar. In recent years the Fed has been printing excessive amounts of paper money to keep the demands of the government intact.
What does this executive order really mean though?
Is President Biden wanting to create a digital currency so from now on the IRS can track all digital currencies too? This executive order came as a surprise to most, as it was not even mentioned in his State of the Union address from the previous week. One of the main reasons that one can believe, is that if a new digital dollar were to be created by the Federal Reserve, that can only mean the dollar is rapidly devaluating. Most digital currencies are not even backed and are essentially fiat as well. If our government system transitions over to a digital currency, the dollar may be obliterated completely. This executive decision was clearly signed for tracking all types of digital transactions.
What does this mean for gold?
Gold may ultimately become even more lucrative than before. The real question, that is concerning, is what would you rather hold possession of? Digital-backed platforms and digital assets get hacked all the time by coders and hackers that trace digital footprints. Also with the Russia-Ukraine crisis, there have been hints that a cyberattack from Russia is on the brink of happening. Ultimately holding possession of a physical asset like gold will safeguard not only your financial future, but your worries of being hacked as well. With gold on the rise again, many have said gold may double or triple in the next 5 years due to all of the turmoil and inflation spikes all over the world. It is not time to act on digital currencies, but time to act on gold.