Gold-backed crypto replaces US dollar

[Hagrigton]

There's a reason why several of these gold backed cryptos have already popped up and pretty much has done nothing major.

I think that the primary reason is that the value of a gold backed crypto comes solely from the fact that you trust the custodian of your metals to keep it safe and not just run with it. You also trust them to run a full reserve instead of a fractional reserve. By having a gold backed crypto you're also handing over control over the entire money supply to the founder of the blockchain, as he is able to constantly add new units to circulation.

Essentially, this is going to be no different to centralised stablecoins like Tether, except with gold. I don't see how this not so trustless system is any better than bitcoin itself.

It may not sound like a more trustable system than what we've already got with bitcoin, but that's not going to stop a major financial power from trying to implement it. The Chinese have been buying up assets from Vancouver to Cape Town in an effort to show their "soft power" or financial dominance around the world. This Yuan-sponsored-gold-backed-crypto would be more of an excuse by them to step in and try to replace Bitcoin. Not that it would be a good idea for us.

And regarding the debt, another thing that is often missed is the GDP figures. 18.57 trillion GDP is not that far off from 20 trillion in debt.

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[BCSHonda]

If it's backed by gold, what about the certificate and the storage (and the cost to store in the vault). It's going to make a centralized currency, ...again... it doesn't look something easy to create. Also just to remind you, the us dollar was backed by gold until 30 or 40 years ago

All the conjectures here are just conjectures given there is nothing to verify them. It's just to express the discussion for the story. What's the property like? What is the value of money? All of them, with the effort of the future, can prove them. In fact, it is still necessary to use gold as a decorative item, while currency (usd) for economic circulation, and electronic money for the technological age. Each asset has its own features and needs more time to make decisions for them. I think so.

[the13thsymphony]

That is true that the US is in a great dept right now and only a very few percentage of its population knows about it and is doing something about it. If another great recession happens again in the economy of the USA many people will turn into cryptocurrency regardless of its volatility(which is one of the reasons many people are still afraid of it) to save all of their assets whether it is gold, real state and even health care.

[Elpeor00]

Why gold backed? there's no need of gold or any other physical commodity backing up a crypto, the PoW coins are already backed up by the energy you need to mine it and the net's computational power, to give more stability, the thing people try to do with the commodities as back up you need consumers who use the coin for daily purchases.

[Hagrigton]

If it's backed by gold, what about the certificate and the storage (and the cost to store in the vault). It's going to make a centralized currency, ...again... it doesn't look something easy to create. Also just to remind you, the us dollar was backed by gold until 30 or 40 years ago

All the conjectures here are just conjectures given there is nothing to verify them. It's just to express the discussion for the story. What's the property like? What is the value of money? All of them, with the effort of the future, can prove them. In fact, it is still necessary to use gold as a decorative item, while currency (usd) for economic circulation, and electronic money for the technological age. Each asset has its own features and needs more time to make decisions for them. I think so.

This is just what we like to do. Speculate, make conjectures, and wonder about strange things that we have no idea about. Sometimes they may come true, if we can make the connections ahead of time.

The wonder of crypto lies in it's immature nature. It is still a naive asset that is trying to establish itself in the market and no one really knows how to treat it. There are still arguments going on whether it's a currency or asset or whatever. This means that it still hasn't settled, and it has great potential because of that.