Could simplify this to a very basic understanding to understand it fully with someone who has no knowledge but wants to start a Token (Altcoin)?
What are some of the steps you would take? Keep in mind I want it to be used with the real life currency like purchasing precious metals and abinding with taxes, laws and regulations.
I think the big thing to watch out for when considering launching a coin, token, currency or asset is what you are going to "back" it with.
It is basically an IOU, just like a bank balance is.
A bank balance shows how much, of what, the bank owes you.
Similarly a coin token currency or asset shows how much its issuer or minter owes you.
Unless it is a commodity in and of itself, of course.
Bitcoin is more a commodity than a coin token currency or asset because just like gold or gasoline or eggs or bacon or butter or pork-bellies it is the thing itself, the uses to which it can be put, and the cost of manufacturing it and shipping it to you that is generally taken to be its "value".
A generic token or coin such as anyone can at almost-no cost mint arbitrary numbers of is until imbued with value just another almost-worthless data-structure, possibly representing nothing whatsoever.
It is a medium, media upon which can be recorded things like how much, of what, who is going to give you for it.
Thus a first consideration before launching should be how much of what are you going to buy them back for?
Once you have decided that - I recall you indicating you were thinking of redeeming yours for metals? - you can simply divide the amount of what you are going to buy it back with by the number of units you issue of your IOU (coin,token,etc) to assign a value per IOU.
A big motivation for people "floating" their IOUs on markets is the hope someone somewhere sometime will buy one for more than the value that the original issuer of it put into it.
That applies to commodities too of course not just to IOUs; bitcoin miners are at least partial motivated, usually, by a hope someone will someday pay them more for the bitcoins they mint than it cost them to mint them.
With IOUs, costing almost nothing to mint, what is put into them is mostly how much the issuer of them is expected by other people to buy them back for.
That leads us to the idea of total-bullshit coins tokens etc, which go farther even than IOUs:
With the total-bullshit crap the only supposed "value" they have, since it is known or should be known that the issuer is one of the least likely persons to ever even consider buying them, is the hope or dream or fantasy that some other idiot will buy one or more of them...
Hence ponzi schemes, the greater-fool theory and so on...
-MarkM-
What about if I am able to create a Token (Altcoin) that is the same value of precious metals like everything from the basic metal to like copper and the rare chance to get silver and gold?
