The Trust Model

For any financial system to work, it has to have a trust model. What this basically means is that for someone to accept something as payment, they have to have trust in that object or commodity.

Gold was the perfect commodity to instill trust with the people, which is why pre-1971 currencies were backed by Gold. Specifically speaking, the US Dollar was backed by Gold, and all the other currencies were backed by the US Dollar.

But, in 1971, when US President Richard Nixon suspended the Gold Standard, this system of currencies being pegged to the value of Gold was no longer valid. This gave birth to Fiat Currencies.

Fiat currencies are not backed by Gold, in fact, they are not backed by any commodity. The reason that Fiat has value is that the Government orders it to be valuable. It is legal tender.

This gave Governments almost unlimited power over money, and in turn, the financial system.

However, in today's world, Real Estate is perhaps the most valuable and tangible asset there is. Big Time looks to open up opportunities for its users around the world by making real estate investments accessible to everyone, through Blockchain.