![Pink elephant rz.png](https://steemitimages.com/DQmfXHyJBksYfW5D27tUZYGMYXNiZTtRz21qkwqvhGzU3u5/Pink%20elephant%20rz.png)

There is a huge pink crypto elephant in the room, one that I have been mulling over for quite some time now. Just now, as I was answering a rather juicy comment on my post from the erudite @fitzgibbon, thoughts crystalised in my mind and I felt it was time to splurge forth my thoughts on the matter.

So thank you Mr. @fitzgibbon, I am eternally grateful for contributions such as yours.

## The Death Of Fiat

In can be argued that the death knell for fiat currencies was sounded long ago; around 1971 when the gold standard was dropped as a way of valuing and measuring currency, in favour of a model based on debt.

Back then it was felt that it was harder to get the economy moving in times of crisis and strife, because more money could not be injected into the system.

Some people have good business ideas and acumen to back them up, surely those people should have access to credit?

Plus of course, those mid-to-late 20th century politicians had their own elephant-in-the-room scenario. The fact that there was clearly more money in the world than all the gold could ever account for.

So move we did, from the promise to pay the sum of a piece of government approved paper in gold, to paying it in debt.

Fast forward to today, and all of our money is produced on the back of debt, the faster banks lend money, the faster the federal banks will print it, and so the downward spiral continues.

Hence the reason why $10,000 in 2010, just seven years ago, is only worth circa $8,600 today when adjusted for inflation . . .

## Seeing Through The Looking Glass

The illusion of the stability of fiat currency, is perpetuated by the fact that one dollar, or yen, rubble or pound, is always worth exactly one of itself.

Of course they are measured by how much they are worth compared to each other. However if you compare one fractionally reserved currency with another, the illusion of stability is introduced.

Because of course if the dollar is devaluing everyday due to the sheer volume of new notes being produced each and every minute of the day, and the same thing is happening to the British pound, then of course they will stay roughly in tune with each other over time.

However if say each currency was viewed in terms of what it was worth just one generation (20 years) ago, the illusion of stability would be shattered.

Then we would see that a 1997 USD was worth more than twice a 2017 USD . . .

Of course we wouldn't get the same wild fluctuations, however it would fluctuate just like crypto, the only difference is the general trend would reveal itself to be down.

## Time To Break Free

Crypto is growing up fast, I don't feel like I've been in it that long, yet in the time I've joined, I've seen people talking about how if their crypto reached a dollar that would be the moon, to several dozens of cryptos worth way more than a dollar.

So back to the pink crypto elephant in the room, if fiat is so bad; and the answer to the fallacies of fractionally reserved currencies is cryptocurrency, then why oh why do we still measure crypto against fiat?

In my proposal that I set out in my [Is It Time For SBD To Grow Up And Peg Itself To Bitcoin? - A.K.A Dump The Dollar](https://steemit.com/witnesses/@cryptogee/is-it-time-for-sbd-to-grow-up-and-peg-itself-to-bitcoin-a-k-a-dump-the-dollar) article, I suggested that SBD be pegged to Bitcoin and not the dollar.

## The Bitcoin Gold Standard (Not BTG!)

How the pegging would work is quite simple, a snapshot of the value of Bitcoin compared to a bunch of fiat currencies, a few precious metals and minerals, and some other key cryptos is taken on a particular day.

So say for argument sake on 31st Dec 2017 we find out that 100,000 satoshis is worth $18, 20 grams of gold and 22 eth (not real figures), that then becomes our standard.

We call it whatever, something along the lines of the New Bitcoin Standard (NBS) and that's that, everything is from that point on measured using the standard, and of course the standard isn't affected by a rise or fall in the price of Bitcoin.

The advantages of doing this is that we have a steady and stable standard to base value on, and we are sticking two fingers up to fiat and telling them that it simply has little or no place in the new paradigm.

Vive la crypto revolution!!

WHAT DO YOU GUYS THINK; SHOULD WE CARRY ON BASING THE VALUE OF CRYPTO ON HOW MUCH FIAT IT'S WORTH, OR SHOULD WE MOVE TO OUR OWN UNIQUE STANDARD?

AS EVER, LET ME KNOW BELOW!