aeonflux-3D
  • Home Page
  • About us
    • What we do
    • Aeon FLux cosa facciamo
  • Services
    • Gold Service
  • News
  • Tokens
    • Token Gold Plus ITA
    • Token Gold Plus – EN
    • White Paper Aeon Flux Gold PLUS
    • White Paper Big Taurus CLUB
    • White Paper Aeon Flux Gold 100
  • Contact
  • Client Area
  • en_GB English
    • fr_FR French
    • pt_BR Portuguese
    • ru_RU Russian
    • zh_CN Chinese
    • ar Arabic
    • es_ES Spanish
  • Home Page
  • About us
    • Aeon FLux cosa facciamo
    • What we do
  • Tokens
    • White Paper Aeon Flux Gold Plus
    • White Paper Aeon Flux Gold 100
    • White Paper Big Taurus CLUB
  • Our services
  • Our clients
  • Contact
Cardano develops DeFi-Suite Marlowe
May 29, 2021
Nasdaq Acknowledges Chainlink As An Altcoin With Solid Potential In 2021
May 29, 2021
Show all

The New Gold Clause: the use of inflation resistant digital assets in contracts

Published by Aeon Flux on May 29, 2021
Categories
  • News
Tags

Every day we are seeing the effects of monetary inflation on common items, building supplies, food, gasoline, and other daily commodities. This is directly the result of a vast expansion of the money supply by governments. This article focuses on how to use digital assets to mitigate the inflationary effects expanding the money supply, first by examining the strategies of our forefathers, secondly by using modern digital assets in the same manner.Good as GoldA gold clause is a provision within a contract that requires consideration to be paid in gold or another particular type of currency upon request. The creditor can insist on payment either in gold or another type of currency equivalent to gold. With the advent of digital assets, consideration in a contract can now be defined not in gold, currency, or money but in terms of digital assets that are depreciation-resistant. This enables the evolution away from money, currency, or precious metals in contracts towards non-monetary consideration and only real assets.Allegory on monetary inflation in Japan 1860s — debasing gold coins creates more gold coins.Source: WikipediaWhy gold?Creditors involved in long-term contracts benefit from gold clauses when there are concerns about inflation, changes in government, war, or other events that may change the value of a commonly exchanged currency. These clauses were popular in the early 1900s until President Roosevelt issued executive orders confiscating all personally held gold.In 1913, the Federal Reserve Act mandated that all Federal Reserve Notes, also known as ‘paper money’, needed to be backed by the gold that was in the possession of the federal government. Roosevelt believed that issuing more money would help the economy, so he confiscated all gold and gave its holder’s paper money. It became a criminal act to possess more than 5 ounces of gold, punishable by 10 years…

Share
0
Aeon Flux
Aeon Flux

Related posts

November 12, 2021

The quest of STABLECOINS — The way of all stable crypto things


Read more
November 12, 2021

Fueled by Latest Inflation Figures, Bitcoin Jumps to a New All-time High


Read more
November 12, 2021

Will Positive Earnings Surprises Continue To Support Markets?


Read more

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Discover opportunity

  • Home Page
  • About us
    • What we do
    • Aeon FLux cosa facciamo
  • Services
    • Gold Service
  • News
  • Tokens
    • Token Gold Plus ITA
    • Token Gold Plus – EN
    • White Paper Aeon Flux Gold PLUS
    • White Paper Big Taurus CLUB
    • White Paper Aeon Flux Gold 100
  • Contact
  • Client Area
  • en_GB English
    • fr_FR French
    • pt_BR Portuguese
    • ru_RU Russian
    • zh_CN Chinese
    • ar Arabic
    • es_ES Spanish
© 2022 Aeon Flux OU Harju maakond, Tallinn, Lasnamäe linnaosa, Lõõtsa tn 5, 11415- Cn° 16301206 -VAT N° EE102424021 - EMTAK code 46901 - Duns N° 686889151
.
All Rights Reserved.
Powered by IWG Web Agency
Privacy PolicyCookie Policy