This is wonderful, to back the coin with real value "Gold". I see no reason for it not to become the top coin far exceeding BTC (which is not really backed by anything). Only possible problem would be not able to convincingly show that it actually is backed by Gold.
You got the greatest idea. Best of luck!
Firstly... I don't know why I'm replying to a sockpuppet but i want to point out that this is ridiculous and absurd.
Yes, a coin backed by some anonymous dude who promises not to run off with your gold (GTC) is totally going to become adopted by more people than a currency that requires no trust in third parties or reliance on shadow men (bitcoin).If you couldn't tell that was sarcasm. That's never going to happen because the developer of this coin is still a huge weak link.
Also, if the developer is operating in the US he requires regulation and a money-services business licensing.
DO YOU HAVE THIS DEV?Read this on another gold-backed coin and why it won't work:
Load of bullion: new gold-backed bitcoin is a disaster in waiting
Minacoin sounds like a libertarian dream, but it doesn't make sense
http://www.theverge.com/2014/5/6/5685660/do-not-buy-this-gold-backed-bitcoin-minacoinFurthermore, because the coin has a bottom value, it cannot go up in value. Why?
That's simple, would you pay $20 for a token redeemable for $10 worth of gold?
Of course not, because you're not stupid. You would pay $10, and not a penny more.
When the difficulty of mining gets to a point where it costs more than $10 in electricity to mine $10 of GTC, that will most likely be the end. Because the price can't rise to compensate the miners (because no one will pay it), so no one will mine, and the network will become dead/compromised.
All of that, doesn't even compare to the fact that no matter what happens, you have to trust that this person, this one corruptible human being will have access and control of
YOUR MONEY and won't take advantage of that privilege. He's human, anything could happen. He could be in an accident and need surgery, he could lose his job and need money to pay his rent, he could become addicted to crystal meth, or maybe he just really feels like taking a nice long vacation.
He will in effect have access to every penny in the network. It will be in his name and he can sell it at any time, legally, and there won't be much you can do to stop him or get your money after the fact.
Guarantcoin you are asking everyone in this community to throw away everything that we have learned about security and safety over the past 4 years with bitcoin and just "trust you".You make me sick.
People, wake the fuck up.
In this situation one of two things have occured:
- 1. the developer has overlooked the fact that the entire financial system he expects the world to adopt relies on trusting him with large amounts of other peoples money with no legal recourse or oversight.
- 2. the developer has acknowledged this fact and has gone ahead with the plan anyway.
In scenario one the dev is obviously delusional or just plain ignorant of the current state of the industry, and so should not be trusted with running a system of this scale, magnitude or importance.
In scenario two the dev is deceptive and malicious, and so should not be trusted to manage a system of this importance.
It doesn't matter how you pick, it doesn't look good. "Disaster waiting to happen" is probably the most apt headline possible.
