In today’s uncertain times, many firms have begun to explore other options in terms of reserve currencies. Just this week saw the analytics firm MicroStrategy purchase 16,000+ Bitcoin in just such a move. It only takes a few minutes of research to see why other companies may soon follow suit.
Fiat currencies’ days are numbered. This form of currency was always on the decline but as of late, its replacements have accelerated their growth. This year has seen some of the most bizarre monetary policies in over 100 years. Due to the pandemic, economies around the globe are at a standstill. This halting of commerce has led to countries resorting to some pretty drastic measures to help keep their citizens afloat.
One of the most popular measures currently in use by governments to stabilize these market declines is stimulus packages. Stimulus packages are large cash injections into the market. The US has already approved and issued $3T in stimulus with lawmakers set to approve another round of aid in the coming weeks. While this aid is definitely needed by those who have lost their livelihood due to the pandemic, there are some negative effects that must be considered.
Runaway inflation occurs when a government or outside factor causes the people of a country to lose faith in their currency. The most common reason for this event to occur is due to bad monetary policies. Specifically, violating the most basic rules of supply and demand can leave an economy flooded with paper money. This is exactly the scenario that occurred in Venezuela.
The Venezuelan government, under the full weight of US economic sanctions, began to print more Bolivar to try and continue the government’s operations. The printing resulted in record-high inflation taking over the economy. This and other scenarios are in the beginning stages of playing out across the globe.
Cash, Gold, or Crypto
To avoid these predicted inflationary slumps, savvy executives have begun to consider other forms of reserve currency for company operations. Specifically, gold and cryptocurrencies are the two main options available. Gold is an option as old as time. However, there are some serious issues with gold as a reserve currency. Specifically, the fact that most gold investors don’t actually own the physical gold, they just own paper rights to gold.
Paper-gold reserves are especially dangerous for a few key reasons. For one, it may prove impossible to retrieve your gold. Having a paper receipt for gold is totally different than an unalterable record of ownership kept on a blockchain. There have been times in history where governments and other organizations have simply refused to honor these receipts.
A perfect example of this occurred in the 1930s in the US. At the time, President Fredrick Roosevelt approved a measure that made it possible for the US to effectively steal all the gold its citizens owned. The law made it required to sell your gold back to the US for fiat currency and at discounted rates. Those that refused the offer found themselves with legal charges and their gold confiscated. Sadly, since most of these investors had only gold on paper, coveting these assets was simple for the government.
A more recent example of major government gold confiscation occurred last year to the country of Venezuela. Venezuela had kept billions of dollars worth of gold bars in an English bank. The UK decided that it was going to keep the gold and hand its control over to a US-approved government.
GSX is The Smart Choice
In all of these scenarios, utilizing a next-gen gold-pinned digital asset such as GSX would have been the ideal scenario to prevent losses. The immutable nature of the blockchain wouldn’t allow outsiders to come in and alter ownership of assets as they pleased. Additionally, GSX holders are the only ones who have their private keys and access to their holdings. No government or outside the organization can crack this cryptography.
A Better Reserve
These reasons and more continue to drive companies to seek out other reserve currencies. The introduction of full spectrum coins such as GSX creates an exciting opportunity for these firms. GSX is a gold pinned stable coin that can function across a wide variety of blockchain asset classes.
For example, GSX holders enjoy yearly dividends proportionate to the number of tokens they hold in their network wallet. These profits stem from your share of the Apollo Financial 5,000 acre mining operation. Unlike the competition, GSX tokens represent a share of ownership in the entire operation. Your dividends reflect the profits gained from the appreciation of the firm’s gold, land, and equipment.
Even more impressive is the fact that these ROIs are set to increase exponentially. Since GSX is pinned to both gold and the mining operation, it forms a self-promoting cycle of appreciation. For example, the more gold mined from the Apollo operation, the more value the mine is worth. Additionally, both the value of gold and real-estate will appreciate in the coming years. Together, these assets help to secure your dividends.
Another key factor that should help you make your decision is that GSX is the only quantum-resistant stable coin ever created. This coin leverages the powerful technology found in the Apollo blockchain to provide users with unmatched security and protection from these future risks. Coins that aren’t quantum-resistant run the risk of a rude awakening once these machines become affordable.
GSX – A Smart Reserve
With all the uncertainty surrounding fiat currencies at the time, it’s smart to diversify your company’s reserves. GSX provides you with a safe and profitable alternative to fiat currency without the risks of inflation. For this reason and more, GSX is sure to find a home as the smart reserve currency for firms in the future. GSX is currently only available at GSXCDE in pres-sale. Discounts of up to 50% are possible for select investors.