A gold-backed coin

[andrewbb]

If I created a coin that was redeemable for physical gold at a specific ratio, would miners pick it up?

[hexafraction]

How would you technically implement this? How is gold to back each mined block guaranteed cryptographically?

[Panadacoin]

There have already been at least one coin that "claimed" to do this already. It did not go well for users.

[RodeoX]

There may be a market for this? Some people trade "paper gold". However if one could buy a gold backed coin then one could also buy gold. Holding the gold is far more compelling than holding a voucher for gold. Especially when considering that gold is a hedge against catastrophic collapse. A gold backed coin may have zero value if there is no internet, while a gold coin would have huge value.

[desired_username]

The idea of a gold backed crypto currency is idiocy, which germinates from the lack of understanding of how valutation works.

The point of this tech is to remove the need for middlemen, why the hell would anyone want to introduce something to it which inherently requires a central authority to rely on?

[ShetKid]

No miners won't pick it up. Already 2-3 coins exist which have implemented this already. There is also bitgold these past days but is speculated to be a scam. If people want to buy gold they should buy directly and store it, and not buy things which are backed by gold.

[Amph]

we have already the digital version of gold it work well and it's backed by gold, any other non official authority can't claim to have a coin backed by gold, it would be bullshit unless they manage to acquire a large quantity of gold first, but they must prove their position and everything

[AtheistAKASaneBrain]

One of the main selling points of BTC is the fact it simulates the gold supply both in extraction and scarcity without the actual inconveniences of physical gold. Maybe you could fool gold guys into it but I guess they would rather stick with plain gold.

[LiteCoinGuy]

If I created a coin that was redeemable for physical gold at a specific ratio, would miners pick it up?

https://en.wikipedia.org/wiki/E-gold

[Thekool1s]

I think Bitgold and bitshares also have this kind of thing BitGold, I would love to know the differences in them but I think they work the same way. Bitshares one is almost instant. And Bitshares is really worth looking into you can create your own assets/coin like silver etc.

[Mitchell]

There is an altcoin called Xaurum which tries to do this. They even bought a shitload of gold. However, I'm not sure if they used their own money, your money or combined funds to do so.

Proof of Gold

First shipment of 441g.



The message can be verified on keybase.io

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA512

Xaurum gold verification.


... sic manet gloria mundi.
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To be clear: I do not endorse this altcoin (or any altcoin for that matter).

[Hopalong]

If I created a coin that was redeemable for physical gold at a specific ratio, would miners pick it up?

Are you planing to buy up a shitload of gold?

[jeannemadrigal2]

I don't see the point.  For me cryptos are a way to get away from fiat and gold, and commodities.  Maybe it would appeal to some but not me.  As others have said, if I wanted gold I would just go buy some.  I feel that there is a high risk here.  What if the coin dupms (and they all dump sooner or later) and I can get gold for 50% of the price.  Would I hold the coin?  Hell no I would trade it for gold.  So I don't think this would work because people would not want it long term, only for profits.  Then when everyone trades in for gold there will be no more coins.

[Slark]

Are you frustrated by bitcoin's volatility but not happy that we no longer have any currency backed by the gold standard? Incensed that central bankers continue to meddle with the macroeconomy?
Good news: There are more concepts in the works to create currency standards backed by physical commodities than ever before, thanks to the creative crypto-thinkers behind the digital currency revolution.
Anthem Vault plans to launch a gold-backed crypto-coin in May. The bet is that the coin-which is redeemable for 1 gram of gold at the market price-will be a big hit with investors who are tired of bitcoin's wild ways.

You can read about this project, and other coins backed by physical commodities in this article: http://finance.yahoo.com/news/tired-bitcoin-try-marijuana-mulch-133000761.html

I bet some of us did not know that there is marijuana backed coin.

[bornil267645]

How would you technically implement this? How is gold to back each mined block guaranteed cryptographically?

Maybe he is planning on to create some "TOUCH" tech. when you touch the gold in it, it creates a private key respective to that piece of gold. I don't know. 

[gentlemand]

There've been lots of attempts at this and new ones pop up regularly too.

Trust and centralisation are the major issues. Some sucker has to store it and that's what killed off the liberty dollar all them years ago.

On top of that gold itself needs more trust than many crypto fans would be happy with. Paper gold and fake gold are not sexy concepts to me.

[jonald_fyookball]

defeats the point of cryptocurrency.  Bitcoin is already a scarce resource. 

[amiryaqot]

BTCitcoin is better than gold so we really need a centralized gold backed crypto currency it doesn't make sense, BTCitcoin is most advanced crypto currency and we don't need that kind of trap to lose our coins there to make exchange with that.

[NorrisK]

Indeed, you cannot just create a coin and claim it is backed by gold.. For every coin you release, you have to store a certain amount of gold. Basically, when mining coins, you need to continuously buy gold to back it. How will you keep this up? What makes mining the coin valuable to "earn" the gold?

[cryptohunter]

If I created a coin that was redeemable for physical gold at a specific ratio, would miners pick it up?

where do you live?