Understanding the Impending Monetary Reset

The world of cryptocurrency and decentralized finance (DeFi) can seem complex, especially with discussions of monetary resets, ISO compliant tokens, and wealth transfers. This blog post aims to break down these concepts, offering a clear and accessible guide for beginners. Drawing insights from a recent talk by DeFi Freedom founder Tony “Kryptone” Knight, we’ll explore what’s happening in the financial world and how you can prepare.

Understanding the Big Picture: A Monetary Reset

The current financial system, dominated by central banks and fiat currencies like the US dollar, is facing challenges. Many believe that a monetary reset is on the horizon. A monetary reset refers to a fundamental change in how the world’s money is valued and managed. This could involve:

Revaluing assets: Adjusting the value of key assets like gold to reflect their true market worth.
Introducing new currencies: Creating new forms of money, potentially backed by real assets like gold or digital assets like cryptocurrencies.
Changing the role of central banks: Reducing the power and influence of central banks in favor of a more decentralized system.

As the current system is deeply entrenched and typically conservative, and any reset will likely cause some economic pain. However, it also suggests that this reset presents opportunities for those who are prepared.

The Role of Gold

Gold has historically been a safe haven asset and a store of value. Gold could have great importance in a potential monetary reset. Here’s why:

A hedge against inflation: Gold tends to maintain its value during times of inflation, protecting your purchasing power.
A finite and indestructible asset: Unlike fiat currencies, gold is a limited resource that cannot be created out of thin air.
A global standard: Gold is recognized and used worldwide, making it a reliable form of money.

Evidence shows that governments and institutions are accumulating gold, possibly in anticipation of a reset. This could involve revaluing gold on their balance sheets to improve their financial standing. Some experts believe that the US government may be preparing for a full-on gold audit and revaluation.

Crypto as Part of the Equation

Cryptocurrencies, particularly Bitcoin, are also expected to play a significant role in the new monetary system.

Bitcoin as collateral: Bitcoin could be used as collateral to back new currencies or financial systems.
A digital alternative: Cryptocurrencies offer a digital alternative to traditional fiat currencies, appealing to younger generations.
Blockchain technology: The underlying technology behind cryptocurrencies, blockchain, can improve transparency and security in financial systems.

However, it’s important to distinguish between different types of cryptocurrencies:

Bitcoin: Often seen as a store of value and a potential hedge against inflation.
Altcoins: Alternative cryptocurrencies that offer various features and functionalities.
ISO Compliant Tokens: Cryptocurrencies that adhere to international standards for global payments and open banking.

ISO Compliant Tokens: The Future of Global Payments

ISO compliant tokens (e.g. ISO 20022) are a specific type of cryptocurrency designed to facilitate global payments and trade. ISO stands for International Organization for Standardization. These tokens adhere to standards that make them suitable for use by banks, financial institutions, and governments.

Here are some of the key ISO compliant tokens to consider:

Cardano (ADA): A blockchain platform known for its smart contract capabilities and focus on security.
XRP (XRP): A cryptocurrency designed for fast and low-cost international payments.
Stellar (XLM): A blockchain network that facilitates cross-border payments and asset tokenization.
XDC Network (XDC): A hybrid blockchain platform optimized for trade finance and global supply chain.
IOTA (IOTA): A distributed ledger technology designed for the Internet of Things (IoT).
Quant (QNT): A blockchain operating system that connects different blockchains and networks.
Hedera Hashgraph (HBAR): A distributed ledger platform that offers fast transaction speeds and high security.
Algorand (ALGO): A blockchain platform that uses a unique consensus mechanism to ensure security and scalability.

These tokens are expected to play a crucial role in the new financial system by enabling seamless and efficient global transactions. They are designed to work with stablecoins (digital currencies pegged to a stable asset like the US dollar) issued by banks and governments.

Understanding Key Concepts and Acronyms

Navigating the crypto world requires understanding some common terms and acronyms:

DeFi (Decentralized Finance): Financial applications built on blockchain technology, aiming to provide services without intermediaries like banks.
Fiat Currency: Government-issued currency that is not backed by a physical commodity like gold (e.g., US dollar, Euro).
CBDC (Central Bank Digital Currency): A digital form of a country’s fiat currency, issued and regulated by the central bank.
Blockchain: A decentralized and distributed digital ledger that records transactions securely and transparently.
Smart Contract: A self-executing contract written in code and stored on a blockchain.
Tokenization: The process of converting assets (e.g., real estate, commodities) into digital tokens on a blockchain.
Stablecoin: A cryptocurrency pegged to a stable asset like the US dollar, designed to minimize price volatility.
Collateral: An asset pledged as security for a loan or other financial obligation.
ETF (Exchange Traded Fund): A type of investment fund that holds a basket of assets and trades on stock exchanges.

Preparing for the Future: A Strategy for Beginners

While the future is uncertain, there are steps you can take to prepare for the potential monetary reset:

Diversify your assets: Don’t put all your eggs in one basket. Consider diversifying your investments across different asset classes, including gold, cryptocurrencies, and real estate.
Research and educate yourself: Stay informed about the latest developments in the crypto and DeFi space. Understand the risks and opportunities associated with different assets.
Join a supportive educational community: DeFi Freedom offers education and support for crypto beginners as well as those who are already moderately experienced.
Focus on quality projects: Invest in cryptocurrencies with strong fundamentals, real-world use cases, and a solid team behind them.
Consider ISO compliant tokens: Explore the potential of ISO compliant tokens as a means of participating in the new global payment system.
Be cautious of hype and scams: The crypto world is full of hype and scams. Do your own research and be wary of projects that promise unrealistic returns.
Secure your assets: Use strong passwords, enable two-factor authentication, and store your cryptocurrencies in a secure wallet.

Wealth Transfer

The monetary reset is also related to the concept of a wealth transfer, which refers to the shifting of wealth from one group to another. In this context, it suggests that wealth may be transferred from traditional assets like bonds and stocks to new assets like crypto, blockchain technologies, AI, and precious metals. The older generations may be inclined to more traditional investments, while younger generations are more inclined towards crypto.

Remaining Vigilant

While the potential benefits of a new monetary system are exciting, it’s important to remain vigilant and aware of the potential risks. The discussion warns against blindly trusting authorities and encourages individuals to think for themselves. It also highlights the importance of protecting decentralized aspects of crypto. This includes the understanding that stablecoins could become the new CBDC. It is also worth noting that the governments and other actors may use new regulations and technologies to control the flow of money and information.

Conclusion

The world is undergoing a significant transformation, and the monetary system is at the heart of it. By understanding the key concepts, exploring new technologies, and remaining vigilant, you can navigate this changing landscape and position yourself for success in the future. This offers a starting point for beginners, encouraging you to continue learning and exploring the exciting world of crypto and DeFi.

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