gold-baked crypto coin

[alex.bitcoin]

hey everyone!
quite an old story about crypto coin guaranteed by something real for ex. gold. good old physical gold.
just wondering your thoughts about what kind of blockchain or existed coin is able to suit this?
coins suppose to be pre-mined i think

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[1713556667]

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[The Sceptical Chymist]

That concept isn't anything new as far as I remember.  I seem to recall something like it being discussed a few years ago at least, and either nothing has been created or it hasn't been successful--nor do I think a gold-backed crypto would be successful.  If you want to own gold, you can buy gold.  If you want crypto, you can buy crypto.  If you want to speculate in gold without actually owning it, there's a market for that in derivatives/futures/ETFs/mining stocks.  There's absolutely no need to combine crypto with gold or anything else IMO.

I'm pretty sure every country in the world is off the gold standard at this point, and I know the US has been off of it since the 70s.  It would be a step backward at best for a currency to try to get back to the point of being backed by a metal.  You can create a crypto with a limited supply such that you avoid the unlimited inflation inherent in currencies like the USD, which is the main problem nowadays. 

[tinkerr100]

Why interfere with one another. These are only extra difficulties with implementation and other aspects. 

[bitmover]

That concept isn't anything new as far as I remember.  I seem to recall something like it being discussed a few years ago at least, and either nothing has been created or it hasn't been successful--nor do I think a gold-backed crypto would be successful.  If you want to own gold, you can buy gold.  If you want crypto, you can buy crypto.  If you want to speculate in gold without actually owning it, there's a market for that in derivatives/futures/ETFs/mining stocks.  There's absolutely no need to combine crypto with gold or anything else IMO.

I agree with this.

However there are some countries where there are real problems in investing in gold.

It's hard for people in Latin America to buy gold, as there is no ETF gold. It's also not safe to buy thousands of dollars in gold and store it in your house (we have security problems here as well, and there is a small probability someone one day enter your house to steal your stuff).

I would never buy a cryptocurrency backed by gold for the same reasons I would never buy tether (do they really have all that gold/USD?) However I understand that there is a Market for it.

[odolvlobo]

hey everyone!
quite an old story about crypto coin guaranteed by something real for ex. gold. good old physical gold.
just wondering your thoughts about what kind of blockchain or existed coin is able to suit this?
coins suppose to be pre-mined i think

There are literally dozens of coins that are backed by gold. Here is a list: https://www.cointelligence.com/content/gold-backed-cryptocurrency/

I can think of two issues with gold-backed coins:

1. Who pays for the storage of the gold?
2. Who guarantees the company behind the coin?

[alex.bitcoin]

just wondering why ppl don't get about a simple thing like there is nothing REAL in crypto.
my idea not new as I said but the point is very simple - nowadays we need a bridge between smth real and crypto
because of this we have huge volatility. if we talking about fiat fine, but there are tonnes of regulation stuff and in the end, it's just local currency crypto edition.
to set up smth new, as I think, let's take smth real and valuable (gold, silver, palladium, quicksilver, gemstones, etc) and MAYBE it will become the background for another unregulated way of payments/crypto thing. cause all I see last years 99% scam in real with no real value, but good toys.

let's imagine we already have solved all these things like trusted storage/secured vaults/guarantee/paperwork/etc and another question is
which known coin or blockchain may we use for this?

[alex.bitcoin]

hey everyone!
quite an old story about crypto coin guaranteed by something real for ex. gold. good old physical gold.
just wondering your thoughts about what kind of blockchain or existed coin is able to suit this?
coins suppose to be pre-mined i think

There are literally dozens of coins that are backed by gold. Here is a list: https://www.cointelligence.com/content/gold-backed-cryptocurrency/

I can think of two issues with gold-backed coins:

1. Who pays for the storage of the gold?
2. Who guarantees the company behind the coin?

many thanks, will check out these tokens

1. gold holders (don't worry I know the procedure and prices, I was in this business)
2. Swiss trusted and insured storage for example
3. in fact, everyone who owns a minimum quantity of gold (1/5/10/100kg) could place a master node and "generate" coins, buying this you not making XXXX, but you could pay for your dev team and to your hairdresser, etc which is much more important then just speculate and wondering why bitcoin is going down )))

[alex.bitcoin]

I agree with this.

However there are some countries where there are real problems in investing in gold.

It's hard for people in Latin America to buy gold, as there is no ETF gold. It's also not safe to buy thousands of dollars in gold and store it in your house (we have security problems here as well, and there is a small probability someone one day enter your house to steal your stuff).

I would never buy a cryptocurrency backed by gold for the same reasons I would never buy tether (do they really have all that gold/USD?) However I understand that there is a Market for it.

you'd never buy bitcoin in 2008 neither ))) never say never, and it's all about trust and transparency. i doubt you avoid it if everyone around you starts using it on everyday basis with its value 1Oz/coin for example.

[alex.bitcoin]

You'd need trusted party/corporation to make sure the cryptocurrency is backed/guaranteed by gold, but this means the cryptocurrency is centralized/semi-centralized and there's no point of using centralized/semi-centralized cryptocurrency.

Additionally, there are risks such as the gold is stolen (either by insider or outsider) or natural disaster which could swept the gold away. You might want to research about stable-coins as those coins backed by fiat.

i think about stable a lot, but for me it looks like fiat v2.0 and nothing more. i'm sure it'll be regulated same as fiat very soon, so we got another cryptotool by FedRes is we are talking about Tether for example. as i think we need crypto to use everyday, with no regulation, no limits, and stuff and if you want to play with any ICO or new tokens go ahead, try your luck!

[bitmover]

you'd never buy bitcoin in 2008 neither ))) never say never, and it's all about trust and transparency. i doubt you avoid it if everyone around you starts using it on everyday basis with its value 1Oz/coin for example.

It's not a matter of how many people are using tether or a backed gold cryptocurrency.

I don't believe some cryptocurrency company will really have all that USD or gold backed up, because this sector is mostly not regulated, so there are many scammers around. A crypto backed by gold would probably not be really backed up. Unless there is some big company behind...

[feyd27]

There is a fully gold-backed stablecoin, called Digix. It is regularly audited, and the gold backing the coin is redeemable from the issuer. The problem with it is that it's, just like any off-chain collateralized crypto, fully centralized.
I've written a series of articles about stablcoins, part 2 was this: https://medium.com/datadriveninvestor/gold-on-a-block-stablecoins-part-2-7928598b282d

[alex.bitcoin]

you'd never buy bitcoin in 2008 neither ))) never say never, and it's all about trust and transparency. i doubt you avoid it if everyone around you starts using it on everyday basis with its value 1Oz/coin for example.

It's not a matter of how many people are using tether or a backed gold cryptocurrency.

I don't believe some cryptocurrency company will really have all that USD or gold backed up, because this sector is mostly not regulated, so there are many scammers around. A crypto backed by gold would probably not be really backed up. Unless there is some big company behind...

we are talking only about big players of course. its senseless to think if tomorrow someone will tell you HEY I GOT GOLD-BACKED COIN trust me to look. u have 10 friends, and each one has 1kg of gold, right? you putting it to one place and issuing coins, start to use it as you want in fact when you spend coin, rights for your gold transfers to the receiver and he is allowed to withdraw it from "guarant"/vault/storage

[alex.bitcoin]

There is a fully gold-backed stablecoin, called Digix. It is regularly audited, and the gold backing the coin is redeemable from the issuer. The problem with it is that it's, just like any off-chain collateralized crypto, fully centralized.
I've written a series of articles about stablcoins, part 2 was this: https://medium.com/datadriveninvestor/gold-on-a-block-stablecoins-part-2-7928598b282d

digit. can't find iOS/Android wallet, webpages looks abandoned, its not a COIN, but token
could you suggest the way how its possible to make decentralized?
 

[bitmover]

we are talking only about big players of course. its senseless to think if tomorrow someone will tell you HEY I GOT GOLD-BACKED COIN trust me to look. u have 10 friends, and each one has 1kg of gold, right? you putting it to one place and issuing coins, start to use it as you want in fact when you spend coin, rights for your gold transfers to the receiver and he is allowed to withdraw it from "guarant"/vault/storage

Big players such as tether/bitfinex?

They are somehow big, and even so not many people trust that they are really backed up, because they still lack a true audition

[alex.bitcoin]

we are talking only about big players of course. its senseless to think if tomorrow someone will tell you HEY I GOT GOLD-BACKED COIN trust me to look. u have 10 friends, and each one has 1kg of gold, right? you putting it to one place and issuing coins, start to use it as you want in fact when you spend coin, rights for your gold transfers to the receiver and he is allowed to withdraw it from "guarant"/vault/storage

Big players such as tether/bitfinex?

They are somehow big, and even so not many people trust that they are really backed up, because they still lack a true audition

let's say ppl don't trust dollar or local currencies in some countries)
so lack of control it's their issues, but not what I'm looking for)
still looking for technical ways, i'm sure about 'physical' component of the process (( any clues?
all around the board talking about guarantees, insurance and stuff, but no any suggestion or dev advice yet (

[feyd27]

There is a fully gold-backed stablecoin, called Digix. It is regularly audited, and the gold backing the coin is redeemable from the issuer. The problem with it is that it's, just like any off-chain collateralized crypto, fully centralized.
I've written a series of articles about stablcoins, part 2 was this: https://medium.com/datadriveninvestor/gold-on-a-block-stablecoins-part-2-7928598b282d

digit. can't find iOS/Android wallet, webpages looks abandoned, its not a COIN, but token
could you suggest the way how its possible to make decentralized?
 

what's the difference between a coin and a token?
and no - if there is an off-chain collateral, be it gold, any other commodity, or fiat, such as with other stablecoins (USDT, PAX, etc), there's no way to decentralize them.

[chakhigh]

Ok, if we talk risks involved in backing crypto by Gold, then it is not in a worst situation than  crypto backed by fiat. Because this latter can be stolen too! So the question is if Gold is better than fiat or not? It IS. And it's more stable than fiat too.

I see a great potential in using gold and crypto for wealth management like in the current Gigzi project. You can check their ecosystem and why it is very secure, using biometric iritech safety measure for wallet protection too. https://gigzi.com

The team has already a strong partnerships with iritech, Australian Gold minting institution and local banks for converting and crypto to fiat withdrawal.

[Febo]

hey everyone!
quite an old story about crypto coin guaranteed by something real for ex. gold. good old physical gold.
just wondering your thoughts about what kind of blockchain or existed coin is able to suit this?
coins suppose to be pre-mined i think

Problem of gold or other commodity backed crypto tokens is in the fact that no one guarantee you there is any gold collected and even less guaranteed that anyone will give you any gold for your token.  They are realy dumb idea since you can simply buy and hold gold. And have zero risk that someone will scam you.