AnthemGold is a cryptocurrency company focused primarily on making gold easy to own and, ultimately, to become a preferred currency. Each ANTHEM (AGLD) is backed by one gram of physical gold, securely vaulted with a nonbank operator and fully insured.
But looking at the bigger picture, our goal is to bring gold and cryptocurrency together to create the world’s most stable form of money… to become a Gold Standard, if you will, in verifying supply chain management when it comes to the transfer and storage of physical, fungible items of value such as precious metals.
Do you see AnthemGold as a service to be primarily used by people to transact in gold, or as a way for people to easily buy gold as a store of wealth?
Ultimately, I think it will be more of the latter – storing gold as a form of wealth – but I believe the reason people will want to buy our form, AnthemGold, is that it will be a superior way of owning gold, allowing digital transferability via peer-to-peer, decentralized networks.
How does an AnthemGold transaction compare to a traditional bank transaction?
A transaction using AnthemGold can be performed for mere cents and executed in seconds, compared to significant dollars and several days of delay for traditional bank transactions. For example, I recently sent several thousand dollars via the traditional banking system. It cost over a hundred dollars in fees and it took several days.
In stark contrast to a bank, AnthemGold provides a fully gold-backed cryptocurrency that is transferable across the Ethereum global computer network. The one gram of physical gold that backs each ANTHEM is securely vaulted at a nonbank vault and is also fully insured. What this means is that not only is each ANTHEM fully backed with gold – the world’s ultimate store of value for 5,000 years – but they are also fully protected from confiscation and from company failure.
What are the implications of AnthemGold for the banking industry?
The current state of affairs in banking is bizarre due to excessive government control, regulations and compliance. When you look at the countless hours that financial service companies spend on compliance, it is absurd, and it is getting worse. People who work in financial service companies will confirm this. For example, I know an investment banker who spent the first 7 months of his first job learning all the compliance rules, instead of focusing on strategies to build wealth and value for the company’s clients.
Unfortunately this is the reality, but it is something people don’t understand when they look at cryptocurrencies and marvel at how they are gaining in value. If you add up the cost of banking fees and calculate all the time wasted waiting for bank transactions and banks following compliance rules, then you begin to see the value of a decentralized and low-cost cryptocurrency. Sadly, we have become used to the current archaic government-controlled system, thinking it normal that every bank is directed and constrained by an increasingly authoritarian centralized system.
45 minutes is the average time I have to spend, when I am dealing with a bank, and I probably interact with a bank or financial service institution 25 to 30 times a year. So when you add this up, I am wasting two waking days of my life each year.
But a decentralized cryptocurrency like AnthemGold’s eliminates the need for a lot of this wasteful and time-consuming management. A cryptocurrency is so much more efficient than the current hierarchical structure. It is comparable to what innovative tech companies have done to disrupt their industries with decentralization. Think of Airbnb and Uber.
What could a decentralized cryptocurrency like AnthemGold mean for the future of banking and financial services?
The current model means that almost all payment systems must clear through the centralized banking system. Banks have this special privilege for a host of reasons such as legal tender laws, bank charter laws, the Fed wire system, etc.
Fast forward to the present, and there is no denying that we are well into the digital age, and are now at the dawn of the decentralized age. Bitcoin made it possible for trust to be established in a decentralized world, and that very innovation itself has allowed us to look beyond the current Bitcoin model.
The future is in decentralization and voluntary groups, rather than involuntary compliance and a dominant centralized system. This has major implications. For example, a government today can put a lien or a freeze on an account, but in a decentralized world this couldn’t happen. It completely changes the relationships, enhancing trust, efficiency and security. In short, it changes the whole nature of the game.
Banks traditionally make money through payment services and lending, supported by protectionist government regulations that make it extremely difficult, even impossible, for any other business to duplicate a bank’s services. But although the payment system is still largely controlled by the banks, cryptocurrencies are now offering another option. Once cryptocurrencies start taking the payment business away from banks, the only big advantage that banks will have is their ability to supply credit and their access to tap into the government to monetize debt.
What is the potential market for cryptocurrencies?
The amount of gold above ground is estimated to be around $7 trillion in value, whereas Bitcoin, currently the largest cryptocurrency, is only $30 billion. So it is still early in the day, and there is so much opportunity facing us. There is easily 100x left in the space, maybe even 300x or 400x. In ten years time, the cryptocurrency market could easily be worth a trillion dollars.
Look at it another way. The gold market trades at around $22 trillion a year, which is more than the Dow Jones Industrial Index, the S&P 500 and most of the world’s currencies combined.
What are the implications of negative interest rates on cryptocurrencies?
A great question. Not only do the numbers support the market potential for cryptocurrencies, but the reasoning is there as well in our current environment of negative interest rates. As banks continue to pump out easy money and credit, this creates the demand for more cryptocurrencies because people want a currency that is not continually being debased. So it’s a feedback loop.
Once interest rates go meaningfully below zero, then it is cheaper to keep cash in a vault than to hold cash as excess funds at the central bank. The question then becomes, “How much does the central bank trust the commercial banks?” The central bank might start to enforce penalties for keeping cash reserves in a bank vault rather than with the central bank. As you can imagine, once the central bank starts to demand this cash, the system will start to fall apart. Quickly.
Another way to address this is to limit or even ban cash, a trend we are seeing in other countries. As long as governments can force central banks and financial institutions to hold cash on their ledgers, they can easily apply negative interest rates or taxes. Correct?
Exactly. That’s a big part of it. Restricting or banning cash puts more money into the banking system, to create higher excess reserves.
Many people, especially Americans, are accustomed to pricing everything in U.S. Dollars, seeing the dollar as a reliable measuring stick for valuing goods and services. But where or when do you see the tipping point when people wake up and realize that the dollar – and other fiat currencies – are not the ultimate measuring stick and that alternatives do exist?
When you look at places like Venezuela or Ukraine, the people have already woken up. In Venezuela, you hear of people setting up Bitcoin mining equipment and having to transact in Bitcoin because there is no other way to exchange goods and services, except for simple barter. Ukraine has a lot of Bitcoin activity, even a network of Bitcoin ATMs, which is fascinating given that Ukraine is a relatively undeveloped country, still struggling to break free from the crippling institutions of the Soviet era.
Cryptocurrencies make good sense when you understand how they allow people to transact globally, securely, at high speed and with low costs, and to hold assets safely and independent of government interference.
Since AnthemGold is backed by gold, do you expect the price of ANTHEMs to be more stable than other cryptocurrencies, and do you expect them to track the price of gold?
Yes and Yes. We expect ANTHEMs to track the price of gold, similar to how a one gram ingot tracks the price of gold, with a small premium being attached to it due to its form factor. For example, a one gram ingot would have more utility than a one kilogram bar because it is easier to spend a one gram ingot, due to its small size and divisibility.
My hope, and our team’s goal, is to play a material part in protecting people’s wealth and their individual store of value and in particular, guarding against a scenario of civil unrest, such as will occur if inflation takes off. We hope to do this by building up the cryptocurrency infrastructure as quickly as we possibly can. At the end of the day – and without wishing to sound dramatic here – this is a matter of survival because human beings must have ways to transact. But this is still very early days, and the coding language needs to be further developed. After all, Bitcoin is not even ten years old. Like anything in our developing world, it takes a while for technology to advance and then for people to adopt something new until it soon becomes quite commonplace.
Is there anything else you can add?
A brief history lesson, if I may, but an important one concerning gold and the future of money.
My entire career has been spent in the precious metals business, and my father, James U. Blanchard III, spearheaded the movement for Americans to legally own gold once again, a right we lost in 1933 and thankfully regained in 1975, in large part due to my father’s incessant lobbying for legalization.
My parents created James U. Blanchard & Company in 1975, a precious metals and rare coin company that at one time was the world’s largest. Following in their footsteps, even my own three names reflect my aspirations and my heartfelt mission: Anthem (the freedom-seeking hero of Ayn Rand’s novella), Hayek (the Nobel prize-winning economist and philosopher Friedrich Hayek) and Blanchard (continuing the family tradition).
In conclusion, the coming marriage of gold and cryptocurrency is my heritage, my expertise, my vision and my passion, and it is something that I take very seriously. AnthemGold’s experienced team has created an innovative gold-backed cryptocurrency that simply and securely allows you to acquire, store and spend gold worldwide, with silver and other precious metals soon to be added. This, if I may be so bold, is the future of money.
Where can people find out more about AnthemGold?
One of the best places to go is our AnthemGold page on BnkToTheFuture.com an online investment platform.