Silver coins as an alternative to virtual coins?

If governments decide to replace paper money with virtual currencies, silver in particular will benefit. That's what trendwatcher writes Martin Armstrong on his blog. He expects that people who are currently transacting with cash will switch to Silver Coins. These are relatively easy and anonymous to trade.

Martin Armstrong envisions a scenario in which central banks themselves put virtual currencies into circulation as a digital counterpart to cash. These virtual currencies are more traceable than banknotes, which means that the latter will slowly be phased out. Most people will accept this virtual money, but those who don't trust it will turn to alternatives. These can be banknotes in foreign currency, but also silver coins.

Silver coins as an alternative medium of exchange

The trend watcher draws parallels with the past, such as ancient Japan. Each new emperor devalued the currency, so that at some point the population no longer accepted the money. Instead of using government money, they switched to bags of rice and Chinese coins. Another of Armstrong's examples comes from prisons, where cigarettes are still often used as an alternative means of payment.

According to Armstrong, society is very resourceful when it comes to money, especially when the government abuses its monopoly on money. He writes the following about it.

"As soon as you take away the freedom that paper money can provide and the government thinks it can collect 100% of all taxes, then the economy will go underground and switch to barter. As far as silver is concerned, I prefer coins. They are easy to recognize for most people. Silver bars will be worth less, because they have to be tested first. Every employee who comes out of school and goes to work at Starbucks knows that a pre-1965 dollar is worth a lot more."