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

[cryptoboy007]

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?

[crwth]

Isn't the printing of money out of thin air already the solution to the problems that we have now? Think about it, they are doing that because of the current economic situation. There are a lot of people who will work and wants to get paid more and maybe the government is going to reward that.

Right now, we have those USD backed currencies like USDT, USDC, etc. and getting it accepted could be one solution but right now, governments are focused on not letting people get more infected and the result of that is the economic breakdown. Think of these backed currencies, most of the assets are in USD. Then you are probably still within the "printing out money out of thin air" statement. It wouldn't solve it right away, for sure.

[Bitstar_coin]

The question is if people are willing to trust such currency enough to see it as the solution to the recession and accept it, besides, such currency must have been around for sometime to be able to do that, there are some alts backed with cold or other assets already in the market but do they have what it takes to be the number one currency to solve this problem, it is much easier said than done.

[Upgrade00]

Isn't the printing of money out of thin air already the solution to the problems that we have now? Think about it, they are doing that because of the current economic situation. There are a lot of people who will work and wants to get paid more and maybe the government is going to reward that.

Injecting funds into the market out of thin air is not a solution to the problem, it's just a way of encouraging spending to help support the economy, it also does not lead to an increase in employment. When money is printed by he banks out of thin air, it increases the amihnt in circulation and an increase in supply this decrease the value of the currency and increases the value of assets, leading to inflation. Other would adversely affect the economy in the long run.

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?

Global adoption for a cryptocurrency as a means of exchange is not feasible at the moment. I also doubt if an asset-backed currency is the solution, as it has to be backed by an asset that is resistant to the economic crisis. Centralization and scalability issues would also limit it.
The world is still run by fiat currencies, while cryptocurrencies are mostly viewed speculatively, or as a means to hedge funds.

[Findingnemo]

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?

[cryptoboy007]

Isn't the printing of money out of thin air already the solution to the problems that we have now? Think about it, they are doing that because of the current economic situation. There are a lot of people who will work and wants to get paid more and maybe the government is going to reward that.

Right now, we have those USD backed currencies like USDT, USDC, etc. and getting it accepted could be one solution but right now, governments are focused on not letting people get more infected and the result of that is the economic breakdown. Think of these backed currencies, most of the assets are in USD. Then you are probably still within the "printing out money out of thin air" statement. It wouldn't solve it right away, for sure.

I get your point and you should also recall that I mentioned that continuous money printing only solves temporary needs and backfires in the long run. when I think of asset-backed currencies, I usually don't have USDT or PAX in mind, TBH. They are just another dollar in digital form with no end in supply. in real terms, I am referring to a possible gold-backed currency, silver-backed currencies, currencies backed by basket-of-goods, etc. I don't think any altcoin has fully achieved this but a few of them are already coming up with such an idea already, a good example is AXIA, a currency backed by some basket-of-goods. I feel a brand new monetary system is about to be birthed but I don't know how and what form it will take!

[YOSHIE]

What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment?

I think what you say "no" will and ever does, a currency in the form of an altcoin exchange will restore the economy while this is happening, it won't.

The recovery of the world economy has no impact on Altcoin as you have dreamed, The world economy tends to recover, leading to significant changes made by humans to economic activities on the basis of the needs and consumption of increased demand for the currency of each country

If this is happening now, another way to economic recovery is by loosening social activities, by that way economic activities can freely move towards prosperity again, Many ways that can be done by the state to restore the global economy, does not affect the currency supported by altcoin itself.

Altcoin does not help to restore the global economy, Altcoin can only be done in the form of futures investment, and even then must require knowledge and a certain time if you want to get good results.

[cryptoboy007]

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.

[crwth]

Injecting funds into the market out of thin air is not a solution to the problem, it's just a way of encouraging spending to help support the economy, it also does not lead to an increase in employment. When money is printed by he banks out of thin air, it increases the amihnt in circulation and an increase in supply this decrease the value of the currency and increases the value of assets, leading to inflation. Other would adversely affect the economy in the long run.

Just like what cryptoboy007 said, it's going to be a temporary thing. Maybe the current financial crisis is being solved by COVID by resetting the system. (This is the thread I'm referring to). The evidence there is quite interesting. It might be what's happening if you see it in a political view.

I get your point and you should also recall that I mentioned that continuous money printing only solves temporary needs and backfires in the long run. when I think of asset-backed currencies, I usually don't have USDT or PAX in mind, TBH. They are just another dollar in digital form with no end in supply. in real terms, I am referring to a possible gold-backed currency, silver-backed currencies, currencies backed by basket-of-goods, etc. I don't think any altcoin has fully achieved this but a few of them are already coming up with such an idea already, a good example is AXIA, a currency backed by some basket-of-goods. I feel a brand new monetary system is about to be birthed but I don't know how and what form it will take!

Thanks for clearing it out with that. I haven't heard or read anything about AXIA though. Upon looking at the website, it seems like it's like any other coin. They have a very interesting FAQ page though, like the Monetary theory

[marks1976]

I thought that you meant about altcoin backed by asset/commodity or currency. So many services have already started to accept altcoins backed by fiat currently and there was a very high chance for this kind of coin to be accepted as a payment system.

It's also helping to solve the problem in the financial sector.

[Findingnemo]

snip~

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.

If we take a look at the evolution of fiat money they also started with backed up by gold reserves of each country but now it is backed up by nothing so we no need backed up currency we just need the currency which has its own value due to its demand and supply.

[jossiel]

What would be the asset to back that altcoin that you're describing? I've seen several ideas and projects like this but many of them didn't take a long stand in the market. If solving the world's economic problem is what you're determining to see, it wouldn't be as quick as you may think.

The precious metals backed altcoin didn't really get much traction in the past. Maybe this time they will or maybe not.

[Ucy]

 Asset-backed crypto (especially physical assets) would be a really good thing.
 It should however be possible to have the holders of such cryptos to have full control of the assets once they hold the cryptocurrency. If for example I am holding a cryptocurrency that is backed by good foods, herbs, mobile homes, survival stuff, etc I should automatically have full control of the assets and be able to pick them up whenever I want once I have access to the crypto private keys

[serjent05]

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.

[seoincorporation]

Well, is a complex question... When the Dollar was backed with gold was it a perfect economy? The answer is no, because poverty was a reality at that time.

A lot of tokens comes as an asset-backed currency, the project backup the coin in theory? but why then they fail that hard? because it is easy to run with all the investors' money.

SO, if today we backup bitcoin with gold, they will only make from bitcoin a stable coin, but it will not fix the current economic problems.

[Ucy]

snip~

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.

If we take a look at the evolution of fiat money they also started with backed up by gold reserves of each country but now it is backed up by nothing so we no need backed up currency we just need the currency which has its own value due to its demand and supply.

Cryptocurrency is more than money, in my opinion. It more like an autonomous nation with its own currency/tokens. So you can program it (perhaps with new internal coin/token) to do what you want, like "asset back up"... This won't necessarily change what the main native coin is meant to do

[Becky666]

Well, the world economic problems acnt be solve must by any altcoins backed by a currency because the world is dynamic in its economic. We have hard many assets and altcoins backed with difference currency but still nothing good actually came out of them in this regard. We should know that, the world economic problems as at now can't be solve through any digital currency even the Bitcoin itself. The world economic problems will stay with us and can only be solve partially through the use of Digital assets backed by currency with some sort of supply in its demand.

[wozzek23]

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?

I'm not coming up with background of economy studies hence it is completely hard for me to understand your point. Could you please elaborate more on how a new payment processor which is backed by some asset will solve the problems of recession which may start at any time due to current pandemic. In my understanding all the altcoins are getting their value based on speculative which means people may buy and hold some cryptocoins and may make money out of it. Other than this, I could not understand any economic value they could find from it which will be helping them to fight against recession.

I may be wrong because I'm not completely getting your point. All the above, how will you make a new payment system to be well accepted by everyone all of a sudden. I mean even you will be bringing up such payment, it may be taking more time to make it familiar among common people. So, nothing will be saving us from the upcoming pandemic triggered recession.

[Findingnemo]

snip~

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.

If we take a look at the evolution of fiat money they also started with backed up by gold reserves of each country but now it is backed up by nothing so we no need backed up currency we just need the currency which has its own value due to its demand and supply.

Cryptocurrency is more than money, in my opinion. It more like an autonomous nation with its own currency/tokens. So you can program it (perhaps with new internal coin/token) to do what you want, like "asset back up"... This won't necessarily change what the main native coin is meant to do

When we talk about the economy issue then the coins value is more important than its usage so if we pick asset backed currency it will leads to something like fiat money that is why we need completely decentralized like bitcoin not the shitcoins who says we are backed up by this.

[hatshepsut93]

Bitcoin was launched amidst the 2008 crisis, and it didn't change anything back then, and now it had absolutely zero impact on the coronavirus crisis. You can't invent countless asset-backed coins, but without having adoption it won't solve anything. And people don't adopt crypto because there's way too much downsides with it - complex to use, security risks, price volatility and so on.