“In the end, there’s going to be a wake up call, a zero sum game.” Thierry Arys Ruiz on the Gold Standard, the Crypto-bubble and monetary degeneration
Perhaps drawing quite literally from the old saying “All that glitters is not gold”, Chairman and CEO of AgAu (a portmanteau of the periodic names for gold and silver) Thierry Arys Ruiz notes that the modern frenzy around cryptocurrencies that are not dependent on real life criteria are forming at best a degenerating market, at worst an economic bubble.
Drawing upon economic history, Thierry sheds light on the inherent weakness of fiat money such as the dollar and on how events both distant such as the 2008 Financial Crash and contemporary such as the COVID-19 pandemic have stressed their practicality to the limit. Quantitative easing measures taken by the American Federal Reserve has led to the concerning situation where 40 percent of all US dollars currently in circulation have been printed in a single one-year timespan. This, combined with the increasing fears of a massive inflation spike that has only been exacerbated by the ongoing global supply chain crisis, has led to enormous amounts of capital being funneled into cryptocurrencies and Blockchain projects as a whole.
In contrast to more optimistic pioneers in the growing field, Thierry notes that the cycle of high spikes and rapid crashes is not conducive to genuine economic development. “You can’t 10,000X your money with Bitcoin anymore, so you can try with Dogecoin and Shibecoin” Thierry elaborates. “In the end, there’s going to be a wake up call, a zero sum game with a lot of people losing money and a lot of people making money.”
In response to the hyper-speculative market, Thierry argues that the solution for fiscal stability would be found by re-treading our steps rather than rushing forward into uncertain water. Hence, the raison d’etre of AgAu. Founded in 2018, the Switzerland-based company is in the process of issuing digital tokens that would correspond directly to direct ownership of Gold or Silver, in essence updating the Golden Standard to the 21st Century.
By combining the Blockchain, Smart Contract technology, Commodity trading and the cutting edge in Fintech, AgAu seeks to unite the old and the new to infuse the at times chaotic token market with a degree of stability. Ambitious in goals and with an eye to achieve them, Thierry aims to create an updated monetary system that would allow “everyone to preserve and enjoy the fruits of their labour.”
Thierry concludes with a call to action towards stabilizing the market rather than allow its foundations to be built on empty speculation and momentary greed as to do so would only set the stage for another financial disaster.
