In a digital age, it was inevitable that people would try to create a digital currency. On the other hand, in the real or physical world, it was also inevitable that people would want to continue having physical wealth in their hands. For centuries, people have relied on gold as a main source of storing their wealth. Gold tends to stay stable for long periods of time without large price fluctuations, and has always been used as a means of currency and wealth storage. As societies have chosen to stop physically carrying gold and silver and other valuable assets, governments started printing less valuable currencies who’s value was backed by these commodities. However, time and time again, governments have eventually debased their currencies, separating or devaluing the currency’s value from the value of these assets and commodities, which has always led to hyperinflation and the eventual collapse of these less valuable fiats; along with the livelihood of the society that was most attached to them as prices go skyrocketing. Look at Rome, Germany, Venezuela. For example, take a look at the Roman empire. In his article “Inflation And The Fall Of The Roman Empire” at Mises Institute, Joseph R. Peden – after narrating how Roman silver coinage had been debased – states:
“Caracalla had also debased the gold coinage. Under Augustus this circulated at 45 coins to a pound of gold. Caracalla made it 50 to a pound of gold. Within 20 years after him it was circulating at 72 to a pound of gold, reduced to 60 at the end of the century by Diocletian, only to be raised again to 72 by Constantine. So even the gold coinage was in fact inflated — debased.”
He goes on to say that prices were raised by nearly 1,000 percent around the time the Roman emperors decided to abandon a silver coinage, and that only “the Barbarians” were paid in gold.
Let’s not forget Germany after WWll, where 1 Papiermark was worth just 10% of it’s original value just 2 years after Germany was stripped of a large portion of it’s gold and resources as payment for the War.
Another potential problem with these types of currencies in general is that they tend to be highly monitored by the governing factor that has issued them. Although this can help to prevent fraud, there are those that would argue it can also encourage corruption, and micro management. It’s also a general invasion of basic privacy. In recent decades, the invention of the blockchain and digital currencies, also known as cryptocurrencies, have arisen, which may help to solve some of these issues, though it’s a delicate and complex subject. These digital currencies as we know them today were designed with the idea of being decentralized, peer-to-peer, digital currencies. These digital currencies would have a limited number, a unique identifiable encrypted code per token, and hopefully the backing of the community. But, when trying to create a peer-to-peer currency, we run into a host of problems as well: price discovery, volatility, lack of governance, hacking attacks, etc. But the digital currency business has been working through these problems by baby steps, leaps, and bounds. From the Bitcoin that started the blockchain concept for digital currency, to Ethereum, which opened up a host of new applications and innovations for blockchain technology.
However, by large, digital currencies have remained backed by the trust of their users only, their price has remained extremely volatile. This has kept a large portion of could-be-customers away, who might otherwise like the idea of a digital currency, but need a more stable and secure fiat to store their wealth. And now enter DinarDirham.
What is DinarDirham? DinarDirham has been built on Ethereum’s platform, and is a new digital currency platform, that connects it’s own digital currency to the actual gold spot price worldwide. This means that every single DinarCoin is backed by a gold standard… like the US dollar used to be. This provides a much more stable, reliable, and still decentralized digital currency. DinarDirham made all the necessary connections and breakthroughs and are now in full operation. Now you can have the comfort and ease of a digital, decentralized, currency, and have the security of it being backed by a stable and reliable source – gold.
DinarDirham’s three main products include the DinarCoin, Gold Smart Contracts, and Physical Gold or Dinar Gold. Dinar Coins are their form of digital currency (again each one backed by gold). They can be traded, used to purchase items, and used for just about any other use a digitical currency can be used for. Dinar Coins may be purchased or “minted” (which will actually create new Dinar Coins backed by physical gold. Gold Smart Contracts are an auxiliary part of the system, and can be used to trade in for physical gold or the cash value of that gold. And lastly, DinarDirham offers DinarDirham Physical Gold… actual gold coins which weigh in at about 4.25 grams of 999.9 pure gold, use them as you wish. We are also soon to come out with a DinarDirham Wallet (an eWallet), which will also open up investment opportunities to users, act as a trading platform, and will be able to use bitcoin, ether, DinarCoin, and Gold Smart Contracts.
To learn more and get started with DinarDirham, go to: www.dinardirham.com
You can also read our whitepaper.
DinarDirham has also helped to bridge a gap that all new currencies must face… popularity and trust among potential users however the currency is backed. In order for a currency to be successful, it must have a large number of users. In order to get a large number of users, the people must be educated on the currency and want to use it, this is particularly true of digital currencies. DinarDirham has been working on this goal by connecting much of the crypto-community together since 2014 and educating them about their technology. You can read more about some of our educational activity in Cointelegraph.
The future is hopeful for digital currencies and blockchain technology. Let’s not forget the technology is actually quite young and has already made it this far. Bitcoin making the concept widely known and accepted among a large audience, and working on the blockchain to make it more secure from hacks that they had experienced. Ethereum taking the concept of the blockchain and expanding it’s capabilities with Smart Contracts and more, and opening up it’s platform for new businesses to build upon. And now DinarDirham is making a crucial leap towards stabilizing it’s own digital currency with physical gold. We believe that DinarDirham is one more step in the right direction for digital currencies.
References – the effects of the devaluation of currency and of hyperinflation: