The world has changed a lot since money started to be printed out of thin air. As a result of this phenomenon, the ones who print money have to take more, mostly non-sense, precautions to add value or preserve the value attributed to the paper money that they "create".
In the real world, people are forced to work for money, however, billions of them have no idea about what money really is. The paper, which we call bank-note, was a share of real value back in times. When it comes to 21th century, it is just a weapon to inflate or evaluate to make it easier to control crowds.
When money, in paper form, is not trusted but the printers are willing to hide the truth that it is inflated by printing "more than necessary", they may try to take some actions on the exchanges. However, this ends up with the birth of a dual exchange rate system.
Dual Rates in Gold Price
Let me show you something happening today! You may think dual rates will occur but not yet, check this out.
This graphic represents what banks and central bank think the price of 1 gram gold in TL
Yeah, the price of gold retraced over the last week and the chart looks natural. Yet, this is not the real case.
What if you want to buy gold from a bank? Will you pay just 1240 TL for that?
Look at the column named Satış : Sale Price
They clearly say that we accept your 1g gold if you want to trade it for 1230 - 1240 TL but if you want to buy gold, well, we do not take what central bank declares as the criteria 🤡
This is how dual exchange rate starts to show up. Grand Bazaar, where you can trade millions of dollars with no single issue, is an open market and the price of gold hit 1350 TL! Yeah, more than 100 TL per gram.
Of course it is ridiculous to see as the governments can do everything to win an upcoming election. However, keep in mind that, this may always happen if you believe that what they call "money" is not the one that we believe in.
The dual system may bring the chance for arbitrage but no one would accept a 100 TL difference in the price. The difference exists in the parity of USD / TL , as well. Even Tether made it around 2 TL difference already.
Let me show you the examples of it, as well.
This is the price of Tether as market believes.
This is the price of Tether in an open market.
You decide which one is realistic considering the dual exchange rate in the price of gold.
The former ones says 19.41 while the latter says 21.61.
The problem is not the devaluation, the problem is the risk of the divergence between the official and open market spread. It may bring lots of issues.
Sounds fun and depressing when we consider the way people lose their life savings and purchasing power for the sake of some minorities' desire to stay in power.
My personal observation is that the moment you feel safer in the crypto market, which is the wildest market in history, then there is a huge problem with the system. This might be your red line to take some further actions ✌🏼
What I have always seen as real money are Gold, Silver, and Bitcoin.
They may fluctuate in value but I feel happier, more secure, most of the time, wealthier than fiat money owner. Paradigm shift is rapidly happening. The real, maybe the only value, may come back sooner than expected.
Hive On ✌🏼