Asset backed cryptocoins?

[whyrqa]

at the moment, I don't think that cryptocurrency that has great instability and is also decentralized can help the country's economy and be an asset to the country, or individuals. in fact, I think that this is quite dangerous because we don't know when prices will actually fall.

with the unstable situation of thre market right now it is really hard to conclude that it could help or ease. Fluctuations are really hard to control because of its decentralized system, however, this decentralization is being embraced by the investors and traders to make gains and profits out of their own money. I just don't think that it could impact the market that huge because less than 3% of the worlds population are using cryptocurrency and that is less than a ten million of people factoring out those country who has not been in connect to the internet.

other than that the government will not do that because some of them are also fighting against cryptocurrency.

Some might and some might not. Naturally we have a different type and forms of the government and I think those democratic ones are going to go with these emerging ideas of cryptocurrency than to non-democratic type of government.

In a sense, you really are absolutely right, but nevertheless you should not forget and take this attention that some user groups come together in communities to manipulate the cryptocurrency market, creating certain situations due to the total volume of your cryptocurrency.  And this is not to mention the possibilities of large whales, which can provoke price fluctuations for their own benefit.

[1714838510]

1714838510

[Pearls Before Swine]

if you are a crypto enthusiast, are you going to invest on them or would rather stick to bitcoin?

Bitcoin, baby! 

This is what facebook's libra is supposed to be, a cryptocurrency backed by some 'basket of currencies'.  What they plan to have their members use it for is beyond me.  The unbanked population of the world could use bitcoin or some other crypto like dash, as is happening in Venezuela right now instead of a stable coin like libra.  But libra is probably never going to launch anyway.

I agree with everyone who said cryptocurrencies don't need to be backed by anything in order to be functional and valuable.  There doesn't need to be any sort of 'gold standard' in crypto, and I don't really see any use for such.

[SirLancelot]

We have seen some of the assets backed crypto coins in the market on the way and do you guys think this will be the future as this is directly based on national assets like gold and other products like charcoal and energy based products.  This will help in growth of country's economy if not taken over by greedy corporatesand and and will it have government's support or soft corner in the regulator's eye as it will bring in some money from outside.

We have stable coins already and they are the first attempt by developers and Coins like Libra is also one of those, as it is backed by a reserve to keep the price stable. But as we all know it, Libra might no longer be a success due to the government being against the idea of having a global cryptocurrency that will be controlled by Facebook and whatever it is that made them disagree.

But, there are still others like USDT, TUSD, etc. though investors are not showing much interest in it. Bitcoin is volatile, but it is still the cryptocurrency that is getting more attention from most investors.

[fudster]

We have seen some of the assets backed crypto coins in the market on the way and do you guys think this will be the future as this is directly based on national assets like gold and other products like charcoal and energy based products.  This will help in growth of country's economy if not taken over by greedy corporatesand and and will it have government's support or soft corner in the regulator's eye as it will bring in some money from outside.

We have stable coins already and they are the first attempt by developers and Coins like Libra is also one of those, as it is backed by a reserve to keep the price stable. But as we all know it, Libra might no longer be a success due to the government being against the idea of having a global cryptocurrency that will be controlled by Facebook and whatever it is that made them disagree.

But, there are still others like USDT, TUSD, etc. though investors are not showing much interest in it. Bitcoin is volatile, but it is still the cryptocurrency that is getting more attention from most investors.

These stablecoins are also cryptocoins backed by fiat, they are always being centralized though.  This is almost the same with the gold backed coins like XAURUM, its not really going to be seen as decentralize by users but its just that how these team are planing their project. If someone will asks about the reserves online how are they going to prove that the reserved gold exist or USD reserved? Its going to be impossible for people to really believe what they are showing online.

[X-ray]

We have seen some of the assets backed crypto coins in the market on the way and do you guys think this will be the future as this is directly based on national assets like gold and other products like charcoal and energy based products.  This will help in growth of country's economy if not taken over by greedy corporatesand and and will it have government's support or soft corner in the regulator's eye as it will bring in some money from outside.

We have stable coins already and they are the first attempt by developers and Coins like Libra is also one of those, as it is backed by a reserve to keep the price stable. But as we all know it, Libra might no longer be a success due to the government being against the idea of having a global cryptocurrency that will be controlled by Facebook and whatever it is that made them disagree.

But, there are still others like USDT, TUSD, etc. though investors are not showing much interest in it. Bitcoin is volatile, but it is still the cryptocurrency that is getting more attention from most investors.

These stablecoins are also cryptocoins backed by fiat, they are always being centralized though.  This is almost the same with the gold backed coins like XAURUM, its not really going to be seen as decentralize by users but its just that how these team are planing their project. If someone will asks about the reserves online how are they going to prove that the reserved gold exist or USD reserved? Its going to be impossible for people to really believe what they are showing online.

Usually to prove that they need to be audited by the authority because an unaudited stablecoin even if backed by gold is as good as nothing because we dont know whether they rellay have the gold or not anyway. In my opinion if its stablecoin the government should get in touch with them and do the audit because they are literally using the government fiat for backing other currency so that we can know whether they really have the fund or not and the government could get something by taxing them.

[acdc]

I think the type of cryptocurrency backed by assets is difficult to develop in the future. People come to cryptocurrencies because it's decentralized and not regulated by any national bank, so the currency backed by assets does not win investors' trust.
Besides the currency backed by other assets is only a copy of cash, it does not have anything special. If people like gold or oil people just buy them directly.
A question, if I had a Venezuelan Petro, how would I exchange a barrel of oil?

[Kevondo]

when there are assets that have cryptocurrency support it is very difficult to happen because for now cryptocurrency still has no legality that can make cryptocurrency can be used for all payments in the world, so no one can provide a clear guarantee of cryptocurrency because it still does not have support from governments throughout the country.

Or we can say that bitcoin still has to be legalized by majority of the world. However, you can find examples of companies that are actually selling their products and services in exchange of bitcoin and other altcoins. It is just a matter of time before digital currencies of decentralized nature will be legalized by governments, even if they wont want to. The reason would be mass adoptions of digital coins.

[agentx44]

when there are assets that have cryptocurrency support it is very difficult to happen because for now cryptocurrency still has no legality that can make cryptocurrency can be used for all payments in the world, so no one can provide a clear guarantee of cryptocurrency because it still does not have support from governments throughout the country.

Or we can say that bitcoin still has to be legalized by majority of the world. However, you can find examples of companies that are actually selling their products and services in exchange of bitcoin and other altcoins. It is just a matter of time before digital currencies of decentralized nature will be legalized by governments, even if they wont want to. The reason would be mass adoptions of digital coins.

We have seen some of the assets backed crypto coins in the market on the way and do you guys think this will be the future as this is directly based on national assets like gold and other products like charcoal and energy based products.  This will help in growth of country's economy if not taken over by greedy corporatesand and and will it have government's support or soft corner in the regulator's eye as it will bring in some money from outside.

Considering the fact that cryptocurrency is not yet legal all over the world, we cannot still fully rely on assets alone always. It would be a hard way of surviving for crypto. We should seek more for the approval of cryptocurrency being legal all over the world so that the assets would be widespread dessiminating more help compared to what we have now. We should also look forward on regulating the users more so that the government will not be able to take advantage on crypto.

[liuqi]

Gold back and silver backed projects also there in the market but not sure why they have doing it in such a way dude. Still I didn't see the any investors showing interest on such asset backed projects.

Then investors are showing interest to potential and future focussed projects in the marketplace. We need to some loyal projects if that asset or product backed. Both are really useful for us.

[crossabdd]

it's like a company that backs up guys. I think, if they can make backups in real is good, it will be easier for the government to make regulations and monitor them. as well as that could be the future for crypto projects that have backups. but we don't know, whether it is real in backups or just want to make investors not disappointed by writing it on paper. because they never show real proof that they make backups in real places. like gold, energy, silver, etc.

[Hallmader]

We have seen some of the assets backed crypto coins in the market on the way and do you guys think this will be the future as this is directly based on national assets like gold and other products like charcoal and energy based products.  This will help in growth of country's economy if not taken over by greedy corporatesand and and will it have government's support or soft corner in the regulator's eye as it will bring in some money from outside.

I have heard of many people saying the future is going to be asset backed tokens. They may be right but I cannot see a very strong asset-backed token as of this moment. There are fiat-based tokens though. They are backed with actual fiat but they are not considered asset-backed tokens. There were many attempts in the past to sell tokens that are claiming to be gold-backed but nothing is heard of them ever since. They must have all failed.

[joniboini]

There were many attempts in the past to sell tokens that are claiming to be gold-backed but nothing is heard of them ever since. They must have all failed.

I know one project that do this and still alive till today. They run a bounty campaign and in fact pays quite well, around $4k or so per month for their participant. Not sure where they get the liquidity but last time I checked, they have around 150 ETH to market-buy their own tokens from the internal exchange. Pretty sure they have some running and profitable business before they start the project as it's impossble to get 150 ETH out of nowhere. They don't do an ICO too. But that's just an outlier, I still pessimistic about the whole asset-backed crypto in general.

[CarnagexD]

it's like a company that backs up guys. I think, if they can make backups in real is good, it will be easier for the government to make regulations and monitor them.

This isn't totally good for traders and trading, it could probably lessen the market fluctuation which trader do take advantage of to gain and make profits. Stable coins are pretty useful but it should be running ALWAYS under government's premises making it that easy to track and investigate. But it is hard to believe that stable coins are backed by assets. Since it is highly regulated by the government, the idea of stable coins are being just used to manipulate the price of bitcoin is absolutely possible as researches found out some holes with this ( I'm not that very sure tho)

as well as that could be the future for crypto projects that have backups. but we don't know, whether it is real in backups or just want to make investors not disappointed by writing it on paper. because they never show real proof that they make backups in real places. like gold, energy, silver, etc.

Well I think it's time now to support and invest of projects with backed assets. I've been dealing with this industry in past 2-3 years, and projects that I supported hasn't been on the trend since now.
It's natural not to believe on something you haven't see like proofs of backed assets, It totally depends on you in the end.

[el kaka22]

When you have an asset backed crypto currency there is usually centralization involved which is why people dislike it.
I mean it is not really that hard to have a gold backed crypto in theory for example, as long as you have one very trusted company doing it, they could potentially do an ICO and for example they sell 1 ounce of gold for 1 goldcoin or whatever they name it and if you want to buy it you pay whatever the price of 1 ounce of gold is and if you want to sell it you get 1 ounce of gold (or equal dollars) in return and so forth.

Basically all of the mathematics gets stuck at the "what if the company is not a good one" because you can't just trust a company or a person to actually have 1 to 1 backing of those coins in gold and that is why it won't happen (probably).

[Experia]

I dont know if it will be going to be a nation assets like gold ang charcoal here in crypto industry because all of the country has the capability to own it and be one of the whales who will control the market in the future.

Crypto is also a good source of backed-up assets as long as you can hold it and had a patience on this kind of market situation, hopefully there were still lots of chance to make a good comeback soon in terms of uses.

[Harlot]

When you have an asset backed crypto currency there is usually centralization involved which is why people dislike it.
I mean it is not really that hard to have a gold backed crypto in theory for example, as long as you have one very trusted company doing it, they could potentially do an ICO and for example they sell 1 ounce of gold for 1 goldcoin or whatever they name it and if you want to buy it you pay whatever the price of 1 ounce of gold is and if you want to sell it you get 1 ounce of gold (or equal dollars) in return and so forth.

Basically all of the mathematics gets stuck at the "what if the company is not a good one" because you can't just trust a company or a person to actually have 1 to 1 backing of those coins in gold and that is why it won't happen (probably).

Well I think its a fair trade off if you asked me. Even if they are centralized in some way you can't argue to the fact that they are less volatile compared to the decentralized ones. Asset backed cryptos are not only prices through its demand but also to its financial performance because if we are talking about asset backed cryptos we are not only talking about stable coins since I we can categorized STOs as asset backed cryptos as well since they are part of a company similar to what stocks do to them. If people want some kind of diversity happening in our market and they don't want to risk all their capital to volatile cryptos they have the option to buy Stock-like cryptocurrencies.

[BitHodler]

Basically all of the mathematics gets stuck at the "what if the company is not a good one" because you can't just trust a company or a person to actually have 1 to 1 backing of those coins in gold and that is why it won't happen (probably).

It depends though. There are reputable gold refiners with decades of good reputation, where if they issue a gold backed crypto currency, I do think it can work in a fairly safe and trustworthy manner.

I say fairly safe and trustworthy because you can't guarantee full backing, even not when it comes to governments, which means that you have to accept the risk that comes with such a crypto currency.

I personally will alway buy the asset directly, which means physical gold in this case, but some people might prefer the convenience of being able to easily transfer it from one place to another at low cost.

[JeffBrad12]

when there are assets that have cryptocurrency support it is very difficult to happen because for now cryptocurrency still has no legality that can make cryptocurrency can be used for all payments in the world, so no one can provide a clear guarantee of cryptocurrency because it still does not have support from governments throughout the country.

Or we can say that bitcoin still has to be legalized by majority of the world. However, you can find examples of companies that are actually selling their products and services in exchange of bitcoin and other altcoins. It is just a matter of time before digital currencies of decentralized nature will be legalized by governments, even if they wont want to. The reason would be mass adoptions of digital coins.

What I predicted in the future is each country will issue their own digital currency with different technologies and blockchain could be one of them. I can't see the government legalize decentralized currency to be honest. Government is created with the nature of centralization and it's opposing the cryptos nature. it's just like how china created their own crypto which ofcourse will be modified and become centralized currency controlled by china aswell. It's always like that.

[cutesgirl]

when there are assets that have cryptocurrency support it is very difficult to happen because for now cryptocurrency still has no legality that can make cryptocurrency can be used for all payments in the world, so no one can provide a clear guarantee of cryptocurrency because it still does not have support from governments throughout the country.

Or we can say that bitcoin still has to be legalized by majority of the world. However, you can find examples of companies that are actually selling their products and services in exchange of bitcoin and other altcoins. It is just a matter of time before digital currencies of decentralized nature will be legalized by governments, even if they wont want to. The reason would be mass adoptions of digital coins.

What I predicted in the future is each country will issue their own digital currency with different technologies and blockchain could be one of them. I can't see the government legalize decentralized currency to be honest. Government is created with the nature of centralization and it's opposing the cryptos nature. it's just like how china created their own crypto which ofcourse will be modified and become centralized currency controlled by china aswell. It's always like that.

When many country have backed bitcoin as assets investment at the future I thing bring positive for their economic country, not worry about how inflation increase value using bitcoin, but you have worry when use cash money as your transaction because after several year your same money not have the same value because faced with inflation way, keep use crypto as backed your assets for the future.

[GideonGono]

We have seen some of the assets backed crypto coins in the market on the way and do you guys think this will be the future as this is directly based on national assets like gold and other products like charcoal and energy based products.  This will help in growth of country's economy if not taken over by greedy corporatesand and and will it have government's support or soft corner in the regulator's eye as it will bring in some money from outside.

I have heard of many people saying the future is going to be asset backed tokens. They may be right but I cannot see a very strong asset-backed token as of this moment. There are fiat-based tokens though. They are backed with actual fiat but they are not considered asset-backed tokens. There were many attempts in the past to sell tokens that are claiming to be gold-backed but nothing is heard of them ever since. They must have all failed.

There was also a bounty in the past which they claim that it would be backed by silver though as it turns out it's not that legit and it soon lost its value. A lot of ICOs had been conducted and most of them turns out to be scam and we could also mean that in general so that's why you need to select which ICO to invest. Though honestly I think the idea of cryptocurrency backed by something like gold or silver is brilliant but it is not taken seriously. I think there was a project that is paying you could search it if I remember correctly.