📜A Preamble

- SYNC-AEIR

A Discourse on Energy as the “New Gold Standard” for Post-Modern Economics

Financially sustainable and scalable economies are possible when actors agree upon a fundamental value metric, usually based on some universally regarded asset, against which tradable derivatives are pegged. This value metric then becomes a reference standard that awards a basic worth and trust upon which commercial and governance processes can be built. Simultaneously, the associated consequences of one’s actions, or exchange of goods & services can be quantified in a more stable way and transactions, therefore, become an exchange of real value with an ability to mitigate speculative perception on worth. Traded goods are ephemeral and unique. Therefore, transactions cannot be analyzed as influential events that correspond to fluctuating market value or economic prosperity. The worth of tradable assets such as capital goods or even securities becomes difficult to rationalize. Services that provide intangible value, or the assurance of a leveraged tangible asset, will be left uncorroborated. They must be denominated. When pegged against a universally accepted value standard, price determination becomes possible, markets can be analyzed, and quantifiable values can be assigned. Economic fluctuations are explainable by events and are readable within the ecosystem. This readability over time drives investment, business expansion, opportunity, and futures forecasting. This is the result of built trust and coherence in the economic process, translating goods and services to a currency built on top of the value standard which underlies the economy it hosts. Essentially, any currency, historically represented by fungible tokens, becomes the intrinsic derivative for a specific market of the value standard - fractionalizing value and trust for goods and services within that market.

The gold standard, historically, constituted a de facto or formal exercise in the economics of the West. It enabled developing states to identify growth opportunities and engage in metered partnerships by interpreting the gross product and scale of their own economies. From 1717 to 1931, Great Britain had granted cultural validity to gold, a substance which also possessed an intrinsic scarcity to award it some measurable value. The formal recognition of a gold standard occurred in 1819, with the United States following suit with the Gold Standard Act of 1834, transitioning from a bimetallic silver and gold standard. The classical gold standard period, for much of the West, spanned the decades from 1880 to 1914. During this time the Industrial Revolution experienced its most pronounced growth period. Concurrently, economic growth exploded in tandem with the most significant expansion up to that point of a free market for goods, labor, and capital.

After achieving industries of scale, backed by investment in large capital and securities, fiat currencies have a degree of self-sustainability as more trust is placed in the assets they now enable, as opposed to an underlying value standard. Assets such as gold are now treated as exchangeable commodities priced upon this trust, somewhat reversing the previous roles. Industries, however, are co-dependent and hierarchical in terms of their collaborative supply chains. As a result of this, it is possible to identify certain sectors of the economy which provide more bottom-up benefit than others. This indicates an economic germination site and increases the criticality of that industry.

Energy is arguably the most critical industry, generating goods and services upon which every other industry is dependent to survive. As a result of this, energy becomes a fundamental utility and defines the constitution of an economy. This is why energy independence is considered a long-term concern for the prosperity of nations. The trust or sentiment placed in this sector dictates the way in which it is handled. Perhaps ironically, despite the complete dependence on the energy industry, political and scientific sentiments stemming from environmentalism have begun to open opportunities for a new “gold standard” to take root based on.

Renewable energy options are vying for the incumbency of a future that entirely replaces fossil fuels, which currently possess the highest energy density and are seen as the most efficient to use. Placing more trust in the human capacity to develop robust and efficient renewable energy technologies than the stability of the fossil fuels sector is the gambit. The caveat is that even with the prospective development of round-the-clock-usable, higher efficiency and physically integral renewable energy generation, devastating financial effects are expected to ride up to other industries. It is largely unarguable that, fossil fuels resources will need to be phased out, but many useful commodities, be it electricity, plastics, medical instrumentation, transportation, construction and more, are the result of fossil fuel products or processing.

The phasing out of fossil fuels successfully must mitigate detrimental actions to financial sustainability and prevent a dampening of economic activity. This is the strategy of SYNC-AEIR, to tokenize the growth of, SYNC-AEIR owned and operated, renewable energy sources among the widest possible global audience. Our solution: Netzium.