An American company has announced it plans to stop accepting payments in U.S. dollars or other “fiat” currencies and instead will rely only on online payments.
Denver-based Amagi Metals, which deals in precious metals, noted in its announcement that since the dollar was decoupled from gold in 1971, it has lost 97 percent of its value compared to the yellow metal and 83 percent of its domestic purchasing power.
“The trend shows no signs of stopping,” the company said.
“Both investors and foreign governments have begun to lose confidence in the dollar’s future … and so has Amagi Metals.”
The company, therefore, plans that “by the end of 2016, the company will no longer accept U.S. dollars or other ‘fiat’ currencies.”
“Instead, Amagi plans to be trading exclusively in cryptocurrencies like Bitcoin.”
According to a London Guardian report, Bitcoins are an untraceable digital currency founded in 2008 by the pseudonymous “Satoshi Nakomoto,” who disappeared without a trace in 2011 after telling a developer “he’d moved on to other things.”
But Bitcoin itself remains popular among the online crowd.
“Bitcoins fuel a shadow economy that connects students, drug dealers, gamblers, dictators and anyone else who wants to pay for something without being traced. It has found a niche as the currency of Internet vice, digital ‘pieces of eight’ for modern-day pirates,” the report said.
Bitcoins can be purchased in an online exchange service such as Bitinstant. They’re stored in a “wallet” that functions as an online bank account. They then can be spent anywhere that takes Bitcoins.
The Denver company explained its reasoning.
“From its beginnings in 2010, Amagi Metals has advocated what CEO Stephen Macaskill calls a ‘sound money’ philosophy for investors looking to preserve their wealth in the face of governments worldwide issuing massive amounts of currency with little or no relationship to its actual value. Macaskill has been a pioneering cryptocurrency advocate since 2012 and wants Amagi customers to be prepared for what may come of the dollar and other paper currencies around the world.”
Macaskill said the company “wants to be a leader in the sound money movement.”
“With the adoption of cryptocurrencies increasing every day, their viability is virtually assured. History shows that paper currency, backed by nothing of value, will ultimately fail. It’s only a matter of time until no one will be accepting the dollar. By trading exclusively in cryptocurrencies, we’ll still be in business when that time comes.”
The Denver Business Journal noted 40 percent of the company’s revenue already comes through online currencies.
It has been accepting those payments since 2012.
The company’s products are gold and silver, purchased “as ways to preserve wealth for sound money advocates who are wary of the dollar’s future and want a safe haven for their savings.”
Macaskill said customers who have dollars still will be able to purchase products once the change takes place, but they’ll have to convert “their fiat money to cryptocurrency on our website. ”
“Of course, that will be at the exchange rate at that time, whatever it may be.”