Hyperinflation is a threatening condition

Hyperinflation is an extreme condition where finances depreciate by more than 50% each month.

Here is the true example of hyperinflation: Forbes magazine states in an article that in 2008 one of the saleswomen in Harare, the capital of Zimbabwe, for the Sunday newspaper The Times joked, "Look, the first million dollar banana in history."

The gold standard and its demise

Based on the Gold Standard, The Bretton Woods monetary system was established after the end of World War II, the essence of which was the American dollar being pegged to gold. Subsequently, the other selected currencies were linked to the dollar itself.

There were economic inequalities between individual states and a sharp increase in the issue of American banknotes against gold reserves, therefore at the end of the 60s, the Bretton Woods system lost its justification. In the year 1971 American President Nixon decided to abandon the Golden Anchor for good.

In the same year, the Smithsonian Agreement was signed, which fixed the exchange rates of selected currencies against the dollar, but the continued inflation in the American economy eventually brought it to a definitive end in 1973.

Only after the economic crisis, after the years 2007-2008, did the world powers start again to more actively revive the gold commodity markets and thereby generate new state reserves. Today, the USA, China and Russia are among the largest holders of gold reserves in the world.

Is it possible to create a new, Digital Gold Standard?

However, our current world is described by this word: Digitalization. This IT and AI oriented technical-industrial digital revolution strives to achieve more virtual level of perception of goods. But ubiquity created over centuries of the material world does not allow to transform everything only to the digital level.

Values ​​created over the years are and will remain tied to currencies and  commodities issued by states for a long time to come. So the current progress has no choice but to include in its own plans for the future, for example, even gold itself, in which the human race has believed for centuries.

Therefore, it is realistic to assume that if the world powers fill up their gold reserves to the level, there will be a connection of new national as well as private digital-currencies with the gold commodity, which may lead to the creation of a new, already Digital Gold Standard.