Bitcoin Forum

XNF-NoFiatCoin is a digital currency backed by bullion which can be redeemed at anytime. Should bitcoin also be backed by bullion in future so that it can attract more and more people?

Backing it means there has to be someone who backs it.
That means that you have to trust that someone and that there has to be some sort of gain for the someone who does the backing so he does his job.
This creates the very problems that Bitcoin tries to solve, so it isn't a good idea.

Very well said I agree to it would become centeralised rather than decenteralised.

Well no it's already backed... by us miners...

E-Gold already tried that and it ended in tears  :'(

This needs to be a FAQ.

So how does this work exactly? Who is holding all the bullion?

In no one we trust.

Yep, the problem with trying to back a currency with precious metal is that you have to centralise in order to do it and that goes against the whole Bitcoin system, you would inevitably have some kind of central bank or government which would not necessarily work towards the benefit of the people rather than following a strict set of logic and it would be incredibly easy for someone like the U.S Government to shut it down. Maybe, maybe when we finally see an end to the empire building going on from countries and the constant invasions we could possibly see something like this happening, but currently it just doesn't seem possible to me, you would also have to see a massive shift in economic thought for it to happen because too many people have been brainwashed from an early age to believe in paper money.

Cryptocurrencies may not be the end game in the future when it comes to currencies in general but they'll certainly be an excellent safeguard against government corruption.

Not even gonna vote because there is a bigger issue: How do you propose to enforce this?

The backing I want is: we value our words, our contracts, our commitments, our surplus and our agreements all sealed in mathematics instead. That to me would be worth more than all the gold one could ever offer. That is why I voted no. Also I have local coin shops where I live and am not likely to want to transfer gold that I wasn't wearing internationally.

Bitcoin is already backed by "the network". But you knew that already. You just wanted to promote your coin right? :)

it is backed by its purchasing power... amagi metals backs it with there whole range of metals. you can also redeem your bitcoin for crap at overstock etc

Yep, overstock, tigerdirect, soon newegg, and many more online retailers in 2014. Your "coin", good luck in selling some. Try ebay.

Bitcoin is backed by greed based on hype. Backing it with something tangible (a lot more than the fiat on the exchanges) would be impossible at current prices.

Perhaps the most brilliant part of bitcoin is the incentives. Yes, people are greedy. Yes, people like to make easy money. Satoshi had a good understanding of the human psyche. This is not a negative thing, it is the very foundation of bitcoin. It wouldn't work otherwise. Satoshi bet on reality.

Shhhhhhh......It is the sole purpose for creating that account....

Should bullion be backed by something like bitcoin?

lol. Are they really calling it NoFiatCoin?

I don't think Bitcoin should be backed up by anything other than the miners and the people that use it.

I still don't get how this would work. Have the devs bought the gold or what?

It is already backed by anything that anyone are willing to give to exchange, including bullion

Why it ?

I do not want give 1 usd for 1 BTC.

lol. That would imply an altcoin developer investing themselves, rather than trying to scam the community out of start-up money  ;)

Bullion should be backed by Bitcoin. Gold should merely be a physical token showing that the holder is entitled to cash it in for a stash of bitcoins.  ;D

 unless it's a 100% backing meaning one coin equals one ounce of whatever, it's meaningless... as meaningless as an ETF that says it has the physical metal or a kitco pool account that claims to have the metals.. you are basically centralizing the currency to a single organization that way, if that's your style.

The value of a currency is the goods it purchases and the faith people have in it, not necessarily what's backing it. In essence it's backing is the goods it purchases, plain and simple, and the good faith of the people who accept it.

Don't keep all your eggs in one basket.