Bitcoin Forum

They are talking about cryptocurrency backed by gold here - http://cryptoandblockchaintalk.com/cryptocurrency-backed-by-gold-26
Will it work? What else could be used to back crypto and why would it work in your opinion?

I think we should have more coins/tokens that are backed with somekind of asset, be it gold or something else. Cryptocurrency haters one of the main arguments is that crypto isn't backed by anything, Bitcoin isn't backed by anything etc etc. So, having crypto assets that are backed with something more than just a faith, would be a good option to build more trust around crypto?

Lets discuss guys!
1. Would it be good for crypto, if we had more coin/tokens that are backed with some assets like gold for example?
2. What other assets could we back crypto with, if we leave out gold or other precious metals?

Been thinking about that for quite some time to a point where I was thinking about launching a project myself. I think real estate might be something that is good to back crypto. I was thinking something similar like these guys here https://crowdlitoken.com/ to make investing in real estate easy. It's like combining an old school real estate investing with new school blockchain solutions. I think it can work really well when done right.

doesnt this go against some of the principles of cryptocurrencies? Wouldnt this affect decentralization? I think it's quite complicated to implement and preserve those key crypto aspects

This!

I mean it would be a nice idea to boost some trust with real assets backing crypto, but USD isn't backed with anything and it still is used and trusted. The trust will come with time and when more and more people and companies accept it as a method of changing value, then the trust comes naturally.
I don't think we should be looking to start backing every crypto with something. I have faith in crypto and I don't think it needs to be backed to be powerful!

I can agree with you guys on this. Was just thinking about the subject and if we do need to back crypto and if it would be good, or bad, and if, then with what. Discussing these things through helps us in many ways, including understanding what we are looking for in crypto.

Crypto is getting backed by the precious metal because of attracting the users of the middle east. They have started following the Muslim Finance for the users who believe in it. Others can be antique materials or the products that might have a higher value in the market.

It's basically good idea but there were just too many ICOs with that story, I remember darico but I saw others but not participated in them so I didnt remember them. If Tether can be backed by some ammount of $ I dont see why some other token couldnt be backed by gold!

There are other tokens like CEDEX which is backed by diamond and Petro which is backed by oil, gas and other necessary commodities that can be used by the citizens of Venezuela. These cryptos which are backed by real life assets does not fluctuate in market like regular cryptos. So, there's a huge possibility for these coins to solve real life problems like inflation, poverty etc.

Gold-backed tokens that have become legitimate enough to make it onto There are, however, dozens of others out there, which are in ICO, pre-ICO, or are too small to have made any waves in the market.

These ICOs can be repeated indefinitely by the same people, suckering people who are hoping for a huge payout that never comes.

As we can see gold is the most dependable and cliché thing to backup any currency. So it’s no wonder that crypto can be backed by gold. I see this very potential way to build a sustainable crypto market

If you consider the future of crypto market you must backup it by any rigid product like gold or fuel to make the market rigid. So apart from gold oil or technology business can be used to back up the crypto

I keep an eye at this one --> https://bitcointalk.org/index.php?topic=4422892.0
At the moment they're going well as far as I understand too bad I didn't participate in their bounty. Anyway, it will be interesting to see if they will succeed or not.

I think Gold is the best option to back up the crypto. Because it’s been the most accepted option for many countries in the world and can be used to spread the crypto market worldwide

I think it will work for cryptocurrencies to get more acceptance. People will trust cryptocurrencies more if these are backed with gold or other material assets. I guess it will also help reducing the volatility of price.

I think backing any crypto currency by any other asset will not work in the long run.

Take a look at FIAT. For some decades in the past, FIAT was backed by gold but that changed since it wasn't really sustainable and of course because there were other interests.

More about it here: https://en.wikipedia.org/wiki/Gold_standard

The token is used to back up the crypto but now it is also supporting gold because of endorsing new rules of Muslim finance which name is sharia law. As you have asked what else can be used is can be precious gems, painting, antique products etc.

Yes, The news of backing up with gold is true. It is happening to retain the users of the middle east who believe in Muslim finance or follow sharia law. except for gold, some other things can also be used for backing up. It can be some antique products or paintings because it has some value in the time being and the world of creativity.

There is no established material asset to determine the true value of cryptocurrencies. Gold could be a useful unit in this regard I hope. Cryptocurrencies will be accepted more if it is truly backed by asset like gold.

If cryptocurrency is really backed by gold, I think it will definitely increase the adoption rate of the cryptocurrency. People will find it more reliable as they can compare this currency with something that has physical value everywhere.

really! I don't think anything like this are happening cause cryptocurrency and gold both are very different platforms and they don't do business together, well in the future situation can be changed but right now gold and crypto doesn't have any direct connection

Pretty much any widely traded commodity could be used, Gold is the most obvious, but other rare metals such as Platinum, Silver and Rhodium could work. Hell, you could even back the value of the crypto with Nuclear ore or antimatter, though I doubt people would care so much.

well I have been hearing lot of discussion about this topic but the fact is no of them seems very valid to me cause we still didn't get any response about this topic from the authority, so I will suggest you to not to get influence by any rumors until you have the proper reasons to believe

Actually you can back it up with anything that have value . Lets say tetherUSD is backed by USD in reserve account , thats why it always is same price as USD . Somebody soon will make crypto token with backed lambos and actually it can work lol

It is not a good idea. Crypto is backed by math and it is beautiful! Also a gold is more decentralized than any cryptocurrency so it is no needed to be tokenized. So I do not see the sense for launching that project.

crypto are popular and useable in the world. it is more secure and profitable market. it will make sure your profit and it's also committed to provide better service. that's why it will be come back and complete their goal.

yes crypto will come back and make more profit because it is more reliable and committed to ensure profit for investor. its future are good. if you analysis past year crypto market flow chart you will easily understand that.

crypto are more reliable and potential in world. it is more secure and profitable online trading platform. it is more popular in the world that's why it is come back at any time with more profit. its future are more bright and probable.

It will be great. Trading cryptocurrency with precious metal like gold won't be a bad deal. I think it will make cryptocurrencies more acceptable in the whole world. Because many will be interested to deal with gold.

Maybe it will. Because i have already seen some ICO accept gold mining. I think in near future crypto currency backed by gold.

If this happen you should aware about scam. If crypto market backed by gold, there is high possibility to get scammed.

I hope that Bitcoin will soon be going upwards and its investors will benefited. In that case, there may be a need to make such a big decision. I hope that we will soon see the face of profit.

I think Yes it will work like ether in my opinion. There were already many projects that offer cryptocurrency backed by gold. Also I had joined a few bounty campaigns of their ICO. But the tokens have yet to be listed in exchange.

I always think that every things which are accepted by majority of people should be backed by gold. Gold is the most precious metal so it can make the trade safer than as usual.

When market condition or market prices are slightly lower, many efforts can be made to start upwards in different ways. But the market needs to be monitored in advance in the of Bitcoin and digital currency also.

Backing up with gold is not a good Idea I guess based on this we all know this coin is work and I think it will not work based on this.

This is not a good idea that backing up gold based on this it is also bad idea I think and we all know how crypto actually work .

The US dollars are not backed by golds. But still it holds a a dominance in the world. So, I don't think backing up why gold is a solution to anything. It must be potential enough to make a change in the market.

The chances are high that it will not be a good idea. Given that gold fluctuates, it might be the opposite of what was planned for it.

I don't think any backup plans work for cryptocurrencies actually as they are based on blockchain tech and the crypto market is very volatile in its nature. All the fiat plans are more likely to wotrhless here in Crypto-space...

It could work, given gold has a tendency to rise along with time, this may help the BTC to rise too.

It looks like a good idea to me. But people should be careful because there will be massive amount of scams. So precautions need to be taken by investors. I think major altcoins should be backed up too.

This is not the first time a cryptocurrency is being backed by gold or any other assets. Venezuela has already planned to introduce 'Petro', their own cryptocurrency that will be the substitute for their highly inflated fiat currency and also being backed by oil and mineral holdings. Being backed by assets means the crypto will be less volatile and more stable which is a good thing.

Yeah maybe gold is the better option as well as safer for backing up any crypto as it is accepted in many countries. I think it can be used to spread the crypto market.

for me so the crypt provided with gold is like a tool, in fact both units can be bought in a free market, why not support!

If you back it with gold, then you have to store this gold somewhere? This means expenses, who pays those costs? What if some or all of the gold that is backing the cryptocurrency gets stolen?

Or if you back the currency for example with real estate. If there's is going to be a next real estate market crash, what then?

I think there are many risks involved, and these might do more harm to the coin/token in a long run than do good.

There is actually an ICO with similar purpose, Gemera. Their token Gema is backed by Colombian emeralds.

Seems interesting. Are you involved in the project? How does it work? Just explain to me like I'm 5 years old and can't read a whitepaper. :D

i don't see a point to back crypto with anything.. i think crypto is backing itself with the idea behind it, transactions without a middleman, being cheap, being fast

I've ever met this gold backed project of something similar like it. From the explanation they give through their sites or whitepaper, most of them offering a huge amount of profit/ROI from it. And it sure attracting many investors to put their investment in it.

Now gold or "conversations" about the maintenance of the crypto currency gold do not cost anything. It's just a deceptive maneuver for investors to attract attention. Nobody has such a gold reserve (except for some countries), so that at any time, each interested person receives a piece of gold in exchange for a crypto currency.

Crypto will never replace gold and other materials like this. Even despite on its value and other promising characteristics. It can break economics but not the nature.

I agree with you on that. I don't see crypto as a replacement to gold rather than replacement to FIAT.

Crypto is not worthy to the gold at all. These are too different things and it is wrong decision to compare them. I prefer to think that they are worthy with their own.

Yes, they are different things. But you still could back crypto with real gold.

With regard to gold and cryptocurrency, it is a currency expression of different eras. Gold is one of the oldest currencies. It is a scarce resource of the earth. Encryption is the latest currency. The biggest difference between it and gold is that there is only bitcoin in the cryptocurrency is scarce.

I think that will be good idea because if we want to stay more safe in my opinion we can choose to wait on gold backed stable coin rather than usd backed stable coin. because gold seems more safe for me than usd. to we can hold our fiat goldt for example rather than tether. surely if trustable company will do that .

Projects supported by gold came out a lot some turned out to be scam some while working. Everyone says that 1 token equals one gram of gold, but no one really knows that. Such a comparison is very similar to usdt to the real dollar.

Even tough it is not technically backed by gold I think it has a value directly attached to it. Think about it, when does gold go up in value? Over time and and when fiat devalues, exactly the same thing with crypto. Why does gold worth anything? Because people put a value into it and think its valuable and has very short amount of supply, exactly the same with bitcoin.

I know crypto is not backed by gold at all but if you check when gold goes up in the long term and when bitcoin goes up it will be the same times. The only logical difference between them is gold is a huge market that has been around for a long time whereas bitcoin is a smaller newer market but all the things that makes them move are the same (except there are more whales that play with the prices in bitcoin) and seems like will be like that for a long time.

Backed crypto is not a crypto. If you consider gold as way of insuring the cost of tokens, it may work, but when you connect token to real world asset you slow its growth.

In any case, it will be better if a certain part of the tokens is backed up with gold or something else. The enclosed article lists eight cryptocurrencies that are already backed by gold. So it works. I also recently participated in
in the ICO Jinni signature campaign, which tokens should also be backed with gold. The signature campaign there has long been over, but the ICO is still going on until the end of December, and the tokens promise to pay in January. I hope that the tokens of this campaign will grow in value. Already, they declare the cost of the token at the price of ICO 7.04 dollars, and in a few years they promise that its value will rise to 999 dollars.

Cryptos that are back by industry, assets and a government institutions. Which are the most bio factor in the crypto space. Ive heard alot of things that are in common but what important we embrace the blcokchain technology.

And what else is there to say? Everyone says that cryptocurrency in particular, BTC will be very popular and will be of great value, because it is BTC that is very active today, so start investing in it.

try to see the website active or not, because that is the first capital that I made reference to, whether the project was very intense in its development

Such tokens would not be different from shares and similar documents. Main goal of crypto is creation of alternative ways, not copying.

Backing crypto with the most precious metal on earth simply means trust and credibility in the future of crypto. And in the midst of the opposition, this development is all good. Lucky enough, some oil dependent economies are already backing crypto with their oil money. In short, more of these is needed to bring some form of mass conviction and support to blockchain if it is to really thrive in a massive way.

This idea has been tried several times and it has not worked and most of the projects turned out to be a scam, so if I were you I will stay away from those projects because it is likely the same people are behind them and are trying the same scam again, however such a cryptocurrency will not work even if it was legit, because you will need a centralized party storing all that gold and you will need to trust them that they are in fact holding the gold they say they are holding.

But the biggest problem for such a coin is that it is likely that governments will eventually find where to vaults are located and will confiscate the gold and will destroy the coin, this is why bitcoin is decentralized so governments cannot do that.

As for me, the only goal of this thread is creating hype about the ICO that is in the first post. There were tons of similar discussions and answer is almost the same.

I think it will not work as expected. I think every property has its own market. We have foreign exchange market, crypto market, stock market and gold stock. We should divide these markets so that we can control everything more easily. and will be less affected.

Crypto will never replace such expensive materials and it will never be compared with them.They are too various with their natures and their contributions are different as well.

It is used to measure the value of other currencies in the gold of our lives. This is because people all over the world recognize the value of gold, which is related to its own scarcity, and this concept has been circulated for a long time. so gold can be used as a general equivalent to measure the value of everything, which of course includes the bitcoin that is only 9 years old.

I consider that it will not work because these ones are so various that the common aspectes are not here unlike being valuable but it is not enough so much.

I saw crypto that is backed by real estate and it does not work as it intended to be, so you should be very careful investing in the projects like this, because of high limitation of growth frequency.

I think it would work, but just needs a good dedicated team behind the project. Growth thing is one aspect of this for sure. This is something they have to figure out.

Found this the other day, they are also bringing in real estate aspect http://www.chellecoin.com

So, you can invest in real estate on their platform, as I can understand? My main question is, what happens when there's going to be next housing market crash? These projects can go sour real fast then, no, yes? I feel like yes..

I think the value is digital not necessarily gold and other tangible asset! The bitcoin otherwise known as digital gold has outperfomed gold and other precious metal and is hightime we realize that value goin foward will be digital back by good technology!

Well, it is not actually the first time we are going to be seeing gold backed crypto coin in the market, we have seen a lot of them, but my problem in the end is that they are basically failures and there is even no reason why this should be in play in the first place, best to my knowledge. If I want to invest in gold, I can just do that anyway.

Well, like you said anyway, there is a possibility that we are seeing the possibilities of a digital currency backed with real life assets in the long run anyway, based on the fact that the technology if used well can be of help.

Crypto backed by gold? I think there's already one before that has it.

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I think you have heard about Xaurum, this coin was good before and is making some noise but I don't have any thoughts on how it is going today but this coin was said to be backed up by gold market.

Whatever you want to invest in, whether it is gold backed crypto or real estate backed crypto, the most important thing is to be sure you are actually sure you are investing in the right team that can deliver, as a lot of them are just popping up just to collect money from investors but basically have no zeal to do anything regarding development on the project in the long term. As long as you are satisfied with the team, their business solution and what they are after, then you can possibly invest based on that trust.

That is true. If the team has no experience what so ever, then it is very hard for them to launch a successful project. Not impossible, but I'd rather see an experienced team and invest in their project.

metal backed cryptocurrency is likely scam, guys be careful with such those project

Why do you think so? Do you have personal experience? If you do, please share!

Hm right now we have crypto backed by asset like Gemera, its backed by columbian emerald. I think its good for investor who wanna get proof of asset. You know that USDT is one of stable crypto and people will change to USDT when the crypto market crash.
Nothing to worry about project that backed by something, during the ICO team collaborate with miner company its fine.

Yeah, I have heard about it. Are you part of the project? Just saw you have Gemera branding and stuff in your signature.

it doesn't have to be successful, especially nowadays all projects are very slow in development, even though the project is supported by gold I'm not so sure the project will be fast in its development

A cryptocurrency backed by Swiss Franc, here's the article https://news.bitcoin.com/liechtenstein-bank-to-launch-its-own-cryptocurrency-backed-by-the-swiss-franc/

the gold is not the only precious metal that is used to back a coin, silver is also used.
for example silver token is doing that.
https://silvertoken.com/

I know of a project in which early this year was HelloGold, but when I read more information about this project. I suppose it does not fit, because first the nature of gold is not the same as USD, it has price fluctuations and if such a project is backed by gold. What do you do to prove that the project has a gold number corresponding to the token of the project in circulation

I do not like that idea at all, the idea behind cryptocurrencies is to be decentralized, if a crypto is backed by something then you are going to need a centralized party to keep control of whatever asset you are using to back that crypto, and if you do that then that cryptocurrency is no different than fiat and if that is the case then why we would use that cryptocurrency in the first place.

Yes, I agree with you. But this seems like a topic that has 2 schools of thoughts. One thinking is the same as we do, and another is that when backing crypto with something gives it more legitimacy. But I think it also removes the idea of crypto and adds some more decentralization and what happens when something damages the asset it is backed with? For example gold. The gold has to be stored somewhere physically. What happens if it gets stolen, etc? We could bring up so many examples here.

Crypto backed by gold is not possible as both are different entity competing for the establishment of themselves as a investment choice.

I will advice you people to not touch anything like that, Bitcoin is a digital gold there is no need to have physical Gold to back anything up, I could remember Xaurum though there are proof that the team have the Gold in their vault but the tokens value is lower than the value of their Gold holdings. Also there was another scam then, Decloud similar to Xaurum but it is precious metal backed project, I invested in the project but end up being a scam

gold is a very valuable item besides fiat currency, if gold supports the journey of a project it will be a high bargaining value, which I ask which gold company supports it

What do you think about coins that are backed by USD? Are they really backed 100%, do the creators have this somewhere stored safely?

This seems ridiculous, there are many blockchain ideas and innovations involved with real products. and this makes no sense to me. however gold has a big difference with cryptocurrency, especially in form and physical

Indeed crypto and gold are different. That's why some like the idea of backing crypto with gold.. an old asset that has trust and a new one, trying to build that trust. So, it makes sense that people want to use gold to get people to trust their coin/project.

During the trend where prices are dropping, would it make sense to invest in the coins that are backed with real assets, will this hold the value at the same time when the other coins and tokens are falling?

To support the cryptocurrency enough ordinary fiatnyh money that provide us with a level of capitalization!

I think that the crypto currency can not be supported by gold because it is two different investment instruments that compete with each other.