Will an asset-backed currency or altcoin solved the world economic problems?

[davis196]

Good days guys,

The wave of recession is already kicking hard and people are getting laid off in a massive workforce cut. Central banks are also cutting down rate and the U.S is already proposing a negative interest rate, and of course, don't forget the continuous printing of trillions of dollars out of thin air. The problem with excessive money printing is that it solves immediate economic problems and imposes a harder one in the long term, through currency devaluations and hyperinflation.

What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment? This is more like returning to the possibilities that existed during the era of the gold standard, will such a move solve at least a majority of the world's financial problems?

How can an asset-backed cryptocurrency be the solution to any global financial problem?
By "asset-backed currency" you mean a stablecoin,right?There are a few stabelcoins already in existence and none of them is widely accepted.The problem with stablecoins is that nobody trusts the stablecoin creators about having a 100% reserve that covers the value of all the coins in circulation.
The gold standard had it's pros and cons and I don't think that the world is going to return to the gold standart.Returning to the gold standard is NOT a financial "panacea",that will magically solve all financial problems in the world.

[Dariusburst]

Good days guys,

The wave of recession is already kicking hard and people are getting laid off in a massive workforce cut. Central banks are also cutting down rate and the U.S is already proposing a negative interest rate, and of course, don't forget the continuous printing of trillions of dollars out of thin air. The problem with excessive money printing is that it solves immediate economic problems and imposes a harder one in the long term, through currency devaluations and hyperinflation.

What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment? This is more like returning to the possibilities that existed during the era of the gold standard, will such a move solve at least a majority of the world's financial problems?

Asset backed means gold? We have gold then why we need a token backed up by gold so this is not going to change anything.

Why do you think decentralized payment system like bitcoin could not be a solution to this?

I think whenever I look at this I am looking at a currency that could escape the excessive printing out of thin air. A currency backed by an asset that has a limited supply could possibly put an end to the frivolous money printing.

But it's never going to happen, isn't it? This is why I think Central bank own crypto coin won't do any good, it will have unlimited max supply, honestly don't expect anything good from such coins, they are centralized and easily manipulated by the govs, something Nakamoto planned to  erased from its coin (Bitcoin) and it works

[cryptoboy007]

I am with Findingnemo.  Creating asset-backed token simply repeat the earlier history of currency and see how it goes now.  Aside from that, unless the government issue this cryptocurrency, it won't have any help to solve the economic problem.  One of the reasons is that the global problem is too huge to be solved by an independent small group.  Government with huge fundings had never solved this economic problem, what more an asset-backed cryptocurrency issued by an independent party.

aside from Government efforts, I believe independent parties could still do a lot in achieving stability in the economy. TBH, cryptocurrency would have achieved wide adoption if the government was keen enough to draft favorable crypto regulations. Unfortunately, government is intentionally inhibiting the growth of cryptocurrencies as they view it to be a big threat.

[tbterryboy]

Very interesting, I am also hope that this process will be realized especially when the pandemic continues in all countries. All people also understand that support from many parties is also very important especially the local government in becoming a legitimate and well-accepted means of payment by the community.

I have seen there had been lots of projects tried to prove themselves as an asset backed cryptos but none of them survived till date. I guess 1gram was a project which stated like they were backed by gold but this community simply ignored them and for long duration I have not heard anything from them; probably might have got abandoned. Do you really think it will be easier or possible to make a new crypto be used by more people suddenly?

We do not need a coin which is going to solve the economic problem as that is not common across this globe which is having lots of different countries. What we do need is high value for bitcoins which will definitely help me to fight against the current slow economic situation in my country.

[makishart]

Good days guys,

The wave of recession is already kicking hard and people are getting laid off in a massive workforce cut. Central banks are also cutting down rate and the U.S is already proposing a negative interest rate, and of course, don't forget the continuous printing of trillions of dollars out of thin air. The problem with excessive money printing is that it solves immediate economic problems and imposes a harder one in the long term, through currency devaluations and hyperinflation.

What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment? This is more like returning to the possibilities that existed during the era of the gold standard, will such a move solve at least a majority of the world's financial problems?

Asset backed means gold? We have gold then why we need a token backed up by gold so this is not going to change anything.

Why do you think decentralized payment system like bitcoin could not be a solution to this?

I think whenever I look at this I am looking at a currency that could escape the excessive printing out of thin air. A currency backed by an asset that has a limited supply could possibly put an end to the frivolous money printing.

But it's never going to happen, isn't it? This is why I think Central bank own crypto coin won't do any good, it will have unlimited max supply, honestly don't expect anything good from such coins, they are centralized and easily manipulated by the govs, something Nakamoto planned to  erased from its coin (Bitcoin) and it works

It looks like you should learn how the basic knowledge about the economic.

There will be no unlimited supply and it will release it based on the existing fiat money that has already distributed. Unlimited supply means inflation. You should take a look at how digital yuan is working right now.

[dragon695]

Very interesting, I am also hope that this process will be realized especially when the pandemic continues in all countries. All people also understand that support from many parties is also very important especially the local government in becoming a legitimate and well-accepted means of payment by the community.

I have seen there had been lots of projects tried to prove themselves as an asset backed cryptos but none of them survived till date. I guess 1gram was a project which stated like they were backed by gold but this community simply ignored them and for long duration I have not heard anything from them; probably might have got abandoned. Do you really think it will be easier or possible to make a new crypto be used by more people suddenly?

We do not need a coin which is going to solve the economic problem as that is not common across this globe which is having lots of different countries. What we do need is high value for bitcoins which will definitely help me to fight against the current slow economic situation in my country.

This is what traders would think! You know who gonna think about solutions to solve the economic problem? The Governments. In fact, it is still very hard for cryptocurrency to be a widely used payment method because of its low recognition. Personally, I think, all of the currency should be backed by something just as the way fiat currencies are backed by assets.

[dragon695]

It looks like you should learn how the basic knowledge about the economic.

There will be no unlimited supply and it will release it based on the existing fiat money that has already distributed. Unlimited supply means inflation. You should take a look at how digital yuan is working right now.
[/quote]
True! The basic idea of the economy is how we allocate the supply efficiently to meet our demands. There's no unlimited supply in any kind of nation to avoid inflation which could bring the economy to a great regression after that.

[qwizzie]

I think there is a trend developing in the world for some time now that leads away from FIAT based cash towards digital cash.
This digital cash can be a country's own centralized and state-controlled cryptocurrency (China, Russia, Venezuela and other countries)
and it can also be decentralized cryptocurrencies gaining adoption in certain countries (example : Dash adoption in Venezuela).

In order for decentralized crypto projects to gain adoption to function as pure digital cash, they will need :

* Speed in their transaction settlement (sender --> protected against doublespending --> receiver --> spendable by receiver)
* Ease of use
* Secure
* Low transaction fees
* Function as FIAT cash

There can also be decentralized crypto projects that have a focus on something else then functioning as pure cash (for example crypto projects that
focus on smart contracts or focus on providing stability through backing by other assets or focus on functioning as digital gold).

I suspect it will take at least 5 more years before this ongoing move towards digital cash / digital payments / society digitization fully materializes and
replaces certain FIAT structures.

  

[Kotone]

I think there is no real asset backed on cryptocurrency. These are unspeculative commodities and can gain value or not in the long run. Altcoin projects that has soarly rise are due to the demand of their platform and still associated with risk. Everybody should be aware how volatile and risky this market compared to normal stocks that is backed up by fiat currency.

Example of this is bitcoin, and we all knew that this js a major coin in this market, but we should not be confident that even USD can back this up. The holders and investors that play out their trades on the market make it vulnerable but it does not mean its always a safe asset same goes to other tokens and coins.

[cryptoboy007]

I think there is no real asset backed on cryptocurrency. These are unspeculative commodities and can gain value or not in the long run. Altcoin projects that has soarly rise are due to the demand of their platform and still associated with risk. Everybody should be aware how volatile and risky this market compared to normal stocks that is backed up by fiat currency.

Example of this is bitcoin, and we all knew that this js a major coin in this market, but we should not be confident that even USD can back this up. The holders and investors that play out their trades on the market make it vulnerable but it does not mean its always a safe asset same goes to other tokens and coins.

It would really be great to see an asset-backed cryptocurrency, I don't mean the stablecoin kind of crypto. One that resembles the S&P 500 index, that maybe tracks a collection of items or basket of goods, say a couple of commodities trading in the open market. basket of goods like Maize, metals, oil, real estate, etc. This could be a game-changer

[oldlady]

Actually the dollar flow had reduced the value of many fiat. US using this as a long term strategy to reduce the value of many fiat. Yes it's possible to control it by the reductions of printing the Dollar. Many country market is measured  in terms of dollar.And dollar as medium  to value the county growth rate.So if the cryptocurrency had take the place of dollar,  some how the future economy can be control by crypto.