I know we won't use physical coins. Paper money 'technology' changed that long ago. Today we use mostly digital technology to transact (more money exists on computers than paper). Current digital technology has weakness: it can be hacked, it is not transparent, extremely overly complicated and lengthy process. Blockchain is even more advanced, and as you understand, has none of these weakness. It is fast, simple, transparent, secure and universal in comparison. If 2 words were used to explain blockchain it would be "exchange platform". It's prudent for banks and exchanges to adopt the blockchain technology, and they are. RMG is just one example of many to come.
You are wrong about some things, like how issuing bank is 'solvent' means the money gives value. The issuing bank prints all they want and just collects interest, how can they not be solvent? You realize the Federal Reserve Bank has over 4 TRILLION dollars in assets? I don't think they have a solvency problem. The value is derived from perception of users, to put it bluntly. If it were a matter of solvency, the value would be going up as they became enriched, right?
The 'paper gold' we trade is not even backed by gold! There is no promise of gold behind it! Like it or not, the 'paper gold' is what determines the price of gold. It is ripe to manipulate the price of gold anywhere, with enough money. It works, until it 100% breaks, at which time will be mayhem like you've never experienced. When citizens demand real physical gold, the exchange will not have any to supply. In a legitimate system you would think the price would 'rise' until demand was stiffed, but what if the dollars we use are in a period of hyperinflation, losing 10, 20% per day? Who is going to want to sell their gold at ANY price then? Who will even want to buy gold on the 'exchange' when they don't even have any gold to deliver?! This will show that the emperor has no clothes. Really grasp you mind around this, we are valuing gold on the idea that we 'pretend' there is unlimited gold! Any Joe Blow can go 'short' a billion ounces of gold, driving the price into the ground, when he doesn't have any gold at all! It's speculators market. It's exactly what banks are doing, suppressing the price / smashing retail traders on paper, and buying the real thing! There is 100x more outstanding gold owed on paper than there is supply! Some day, people are going to wake up and demand physical gold over dollars, for many reasons. Those in position of power, running the exchanges and banks know this. They are prepared, and this blockchain is playing a big role. I explained earlier in thread how they will have the physical and u will transact digital. It will give them the perceived power they want. If you want physical gold you better get it before SHTF, so to speak, because nobody is going to come off of the real thing easily when the dust settles.
The only way gold can seek a true value is we trade it like the limited commodity that it is, with 1 unit of blockchain representing X gold. Such a system will give great faith in the health and security of our economic engine. Such a system will allow for some real transparency, it will be a bullet proof system and surprisingly understandable too. It is much more honest and scam-proof than what we do now. Y'all should be begging for this.
Sure our dollars are 'paper money' but only until 1971. At that point they were they completely removed from the standard, and turned it into FIAT paper money. I hope you are not confused by the difference of what money represented then, and now. It's no mistake the following years was a manufacturing boom era. Generous flow of (fake) cash created some incentive to earn this easy money...it was a total trick. Now inflation catches up, and that's always happening ever faster.
