Is Gold Backed Crypto Currency Silly?

[AutoNow]

Hey all, I'm a bit new to this, so forgive any ignorance.

I was just checking out an advert for GoldMint.io and wondering if having a gold backed crypto currency makes any sense?  

Isn't the point of bitcoin that the blockchains maintain stability via limited quantity, and isn't the disconnection from other commodities like gold part of what makes it stable and secure as an investment (prices in other markets have less effect on price of bitcoin?).

My question is: Does having a gold backed crypto currency defeat the purpose? Is it just a silly idea? Surely many people with a layman's understanding will think "Goldbacked? Thats great!" and thus money can be made as they swarm in... but as a long run stable currency, is gold backing a dumb idea?

[HashFace]

There is also DigixDOA, which is supposedly backed by 1 gram of gold per token... But last time I checked it was trading at significantly more than the cost of 1 gram of gold.... Not sure why.

Does it make sense?  Sure.  It could be a safe haven that you could quickly "shapeshift" your holding to in a crash ... Especially for people who don't want to move things in and out of exchanges, or have options to convert to fiat, but do have a multi asset wallet with shapeshift built in. 

I'm just not sure if these are well executed, and from what i can tell, you have to take on faith that the gold really exists.

If I want to buy gold as an investment and not hold it myself, I'd buy GLD on the stock exchange, instead. 

[asepsetiawan1990]

this can mix the mix between other commodities with cryptocurrency. Indeed I've seen in one of the gold mining commodity mining sites available options there. But limited to the packaging and delivery of gold. perhaps with the goldmint can facilitate gold ownership and purchase of gold by cryptocureency method.

[longwintershere]

Hey all, I'm a bit new to this, so forgive any ignorance.

I was just checking out an advert for GoldMint.io and wondering if having a gold backed crypto currency makes any sense?  

Isn't the point of bitcoin that the blockchains maintain stability via limited quantity, and isn't the disconnection from other commodities like gold part of what makes it stable and secure as an investment (prices in other markets have less effect on price of bitcoin?).

My question is: Does having a gold backed crypto currency defeat the purpose? Is it just a silly idea? Surely many people with a layman's understanding will think "Goldbacked? Thats great!" and thus money can be made as they swarm in... but as a long run stable currency, is gold backing a dumb idea?

generally speaking, I believe gold backed cryptocurrency makes perfect sense, especially until the volatility of crypto currencies calms down to the point when it's not needed anymore.

[cryptohunter]

could work but it would never fully decentralised at its base level

the gold deposits even if distributed across a few storage vaults in different countries will be vulnerable and even if a few were robbed/ confiscated by govs etc would crash the value

better to install value on cost of mining like btc to then even psychologically crush the value once it is built in is much more difficult

although the basing against gold is not without some merit or even more so against various different commodities and contracts that you can make more and more decentralised ... but unless done in a very clever way the commodities become psychologically a worry as much as a security

it is almost impossible to improve upon bitcoins design in a clear way with no resulting weakness

[lena1]

It is convenient and profitable, especially if you do not want to keep Gold on your hands, it's easier to buy it on the stock exchange.

[cryptohunter]

It is convenient and profitable, especially if you do not want to keep Gold on your hands, it's easier to buy it on the stock exchange.

but unless you are able to afford a lot of it why would you not want the physical gold under your full physical control

ask egold holders about the how convenient it is to have it in a secure vault