December 20178 BY SERGEI VOZCHIKOV, CEO, COPERNICUS GOLDIN MY VIEWBlockchain Technology helps Reinstate Ever since gold was first smelted more than 5,000 years ago, it has played a key role in the world's development and economy. Historically, the precious metal is the only monetary currency that has withstood the test of time across millennia -- in stark contrast to more than 2,500 created cryptocurrencies that have disappeared in the past decade alone. For a long time, money was based on the Gold Standard, a system by which the value of a country's currency or paper money was directly linked to gold. By the late 19th century, many of the world's major currencies were pegged to gold at a set price per ounce. The Bretton Woods Agreement of 1944 further cemented the Gold Standard's ubiquitous use. Under the agreement, exchange values for all currencies were set in terms of gold, and foreign official holdings by member countries converted into gold at par values of $35 per ounce. The strengthening of the US dollar, however, soon heralded the end of the Gold Standard. In 1971, President Nixon announced the "temporary" suspension of dollar-to-gold conversions. In the wake of the initiative that would later become known as the "Nixon shock," people were forced to transition from gold coins to paper money. Gold, it seemed, had finally lost it shine. The future of money lies in BlockchainFiat currencies rose in prominence after 1971, and today they continue to evolve, pushed forth by technology. The digital age, especially with the advent of blockchain technology, has enabled the creation of a new type of currency--cryptocurrency.Bitcoin, invented nearly nine years ago, and Ethereum are two such currencies that are rapidly being adopted as mainstream fiat currencies. Despite their volatility, cryptocurrencies have attracted growing interest from the financial industry in recent years. Goldman Sachs, for example, is currently exploring a bitcoin trading venture. Key forex trading platforms are also expected to launch pairs on their platform in 2018.Cryptocurrencies function on the basis on blockchain technology. Often described as a type of ledger, blockchain verifies and records, in a transparent manner, every the Gold Standard
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