Asset backed cryptocoins? | Bitcointalksearch.org

BitHodler

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Quote from: iram3130 on December 20, 2019, 02:28:15 AM

Also I dont think people believe when the team say that Petro is backed with Oil. So there is no point, its a normal cryptocurrency.

I have a hard time believing that. I have seen quite a bunch of coins that supposedly were backed by something, but none of them managed to provide any evidence of that, neither did people really care.

All I saw was people hyping the coins up, which seems to be a thing that all bag holders do.... they don't care whether it's a scam or not as long as they can sell their coins to noobs thinking it will 10 or 100x from the price they buy at.

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Asset backed cryptocurrencies were possible, but how this is going to make a change in the market need to be noted. To experience such change is possible in the long term, but it'll be same as that of the investment made on digital gold and other assets. Maybe here we won't be experiencing big growth. With cryptocurrency backed by assets there is chance for higher level of growth to the risking.

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I dont think it is a feasible idea back crypto with an asset because whenever governments want to blame the project, they will first seize the asset and mark all your accounts so that you will be in no place to do anything.
Also I dont think people believe when the team say that Petro is backed with Oil. So there is no point, its a normal cryptocurrency.

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Quote from: RooseveltOah on December 09, 2019, 03:53:00 AM

Agreed, take gold for example, ETFs already provide high liquidity, everything will still be centralized because the gold needs to be stored somewhere, also gold doesn’t have a special use case for the crypto community, hence there really isn’t much use to issue such coin.

However the Xaurum team had come up with the idea of tokenisation of gold. But that gold needed to be stored somewhere too. It is safe no doubt unless a big robbery takes place.

In fact if you are looking to keep gold just buy it yourself. This is good for giving as gift and for inheritance. This is not the gold you should trade though. For that an ETF would be a better option to go for.

Whether we see more asset backed coins is speculation but it can be good for those who are not willing to directly buy the asset but hold some of it in the form of tokens. I dont think governments will nag into this unless they become suspicious, provided nobody is using them for illegal purpose. But we have seen some idiots try to do illegal stuff with crypto too and hence the crackdowns.

davinchi

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There are ones that was done individually without government backing as well, there was a dude that based its token of a company, I think company is an asset as well so a token that is based on a company is still a valid idea, however there are no laws that says tokens could be shares of a company, so dude could get money from us, build his company bigger and all we would have is the tokens to show for how we helped, otherwise we have no other rights.

Sure we could call for dividends of the company but as long as there is no force to make them pay it, it is just for show and they can stop at any moment. Look at ripple for example, they say XRP is basically shares of that company and whenever they do something good the coin rises but we get no dividends, no rights at all.

RooseveltOah

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Quote from: tinyteapot on November 05, 2019, 04:19:33 AM

All the Asset backed cryptocoins in existence already have the backing of the government in the country of their operations, they must be dully registered and comply with certain economic laws of such country before the license of operations can be issue to them.

Asset backed cryptocoins might not be the future because most of these national assets were in place before the advent of blockchain, i think blockchain will make them better but the future is very unpredictable.

Agreed, take gold for example, ETFs already provide high liquidity, everything will still be centralized because the gold needs to be stored somewhere, also gold doesn’t have a special use case for the crypto community, hence there really isn’t much use to issue such coin.

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Quote from: fiulpro on December 08, 2019, 11:21:12 AM

Instead of asset backed bitcoins one could really try and think about the coins backed up the government, which would be actually more convenient for the people also at the same time , people would be more ready to invest in something like that since government backed things are more stable and requires less advertising .
The asset backed coins would be weird , how are they supposed to work ? Wouldn't it be good to just buy those assets instead of those coins then ?

the usability structure can be compared to why you don't buy gold directly even though you know Fiat uses it as backed. In some ways, I think about price fluctuations that won't work strongly for those assets, and with movements that are sure to be stable. Developers will also be slower in determining the sustainability of the targets they have planned.

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Quote from: EdvinZ on December 09, 2019, 02:44:57 AM

Cryptocurrencies, the value of which is backed by real assets, certainly cause more confidence among investors. Because these coins at any time can be exchanged for this very asset. But this only works in case with the legal regulation of a particular cryptocurrency. Now there are many fraudulent coins that are allegedly backed by real assets, but if they are not officially registered, then it does not make any sense.

usually, this kind of stablecoins that are backed by assets claim that they are already being audited by some kind of organization or the government and publish the technicality in their whitepaper. However, if the stablecoin happen to come from a rather less developed country it's kind of doubtful and not really can be trusted. There are some fraudulent stablecoin indeed but you can choose the legit one just easily even you can just guess which is legit by judging their overall trading volume and market capitalization.

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Cryptocurrencies, the value of which is backed by real assets, certainly cause more confidence among investors. Because these coins at any time can be exchanged for this very asset. But this only works in case with the legal regulation of a particular cryptocurrency. Now there are many fraudulent coins that are allegedly backed by real assets, but if they are not officially registered, then it does not make any sense.

fiulpro

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Instead of asset backed bitcoins one could really try and think about the coins backed up the government, which would be actually more convenient for the people also at the same time , people would be more ready to invest in something like that since government backed things are more stable and requires less advertising .
The asset backed coins would be weird , how are they supposed to work ? Wouldn't it be good to just buy those assets instead of those coins then ?

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Quote from: wxa7115 on November 27, 2019, 04:05:02 PM

Quote from: Wysi on November 05, 2019, 03:31:02 AM

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 seen several coins like that in the past and all of them have failed the only ones that are still around are stable coins that are backed by fiat and we have no assurance that those coins are going to remain in place for long.

All of the coins that are backed by something have the very same problem that bitcoin was trying to solve, you need to rely on a centralized institution to not lie to you and to anyone else and to only create as much currency as assets they have in store and we know that this never ends well, if even the government some of the most powerful institutions around the world are unable to resist the temptation to create as many currency as they want it doesn't seem unbelievable that a smaller private institution is going to do the same.

Best investment when backed your assets with bitcoin and altcoin because could increase price become higher, when you use your money only saving with bank maybe safety is first thing with your money but believe or not your money will increase less value because every year your money have inflation price but not if you save and backed your money with bitcoin and altcoin.

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Quote from: Wysi on November 05, 2019, 03:31:02 AM

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.

Well, from the information that i already read, anything like crypto assets have been backup with, its even doesn't give any guarantee like real stuff, Just another name,another features that marketing offer to us as Users. Ironically, more and more they offer us a new features, the more the chance they will lie to us, and finally no products can compete with others.

veleten

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Quote from: ampu on November 30, 2019, 12:03:06 PM

I think the release of cryptocurrencies represents a very complex asset class. There is a specific example of tether, they issue and must always prove the money they have. Issuing assets related to gold, silver, oil and coal will require a corresponding amount of assets. After they issue, can they endorse the amount of assets they own? Orders will occur if they wish. In fact, all types of organic assets can wear out over time and risk being stolen in practice. It will take a lot of rules to realize this idea.

there are many issues with the stablecoins or the asset backed coins whatever you call it
once SEC or any other regulator decides to check the reserves , these types of coins could and usually do get into trouble
Tether is one of the most popular and it got into trouble because they could not prove that they are backed by enough USD
also they are tied to an asset , US dollar in this case , that they do not have any influence on

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It seems to me that Venezuela can become a good example for those against whom the sanctions of the leading countries of the world are acting and who, using the example of their oil companies, can use cryptocurrency to pay for the services of their suppliers.

Oil can be used as a secondary mode of backing a currency. That may be a good point to ponder over. However the demand and supply also needs to be there to be able to use that currency. How would that happen?

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Thus, such companies will not use such a currency as the dollar, which will definitely lead to the indignation of the United States and other countries. But at the same time, this will force the governments of these countries to legalize cryptocurrency and agree with the existing reality, where cryptocurrency is the future.

The bad thing is that it may not necessarily be cryptocurrency. They may wish to print a new type of fiat currency. That is the problem with centralized government controlled currencies. The government will try to control it as much as possible. Fact is most countries have keep inflation under control. Venezuela was the effect of the severely uncontrolled inflation.

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Quote from: Wysi on November 05, 2019, 03:31:02 AM

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 don't think this is a good thing. because backed up is just a term for a business that has a capital surplus and wants to guarantee that type of asset, besides that does not mean anything else. But in the crypto market, nothing is real. I have seen that Jetcoin has invested in several football clubs and it doesn't make any sense. In my opinion, only blockchain technology can change our crypto market.

TheUltraElite

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Quote from: maianh09 on November 30, 2019, 01:40:28 PM

money washing happen anytime, anywhere that we would not know about

How is that related to the topic at hand?

Quote

and asset backed crypto? not crypto only, whold economy.
and last one, the nation's own fiat it they could get it on blockchain, it should be over for bitcoin.

Nope. Bitcoin will remain as long as people use it. Even one person using it means that it is still alive. Again why would people trust a asset-backed crypto which is centralized by the government for supply? It is not different from fiat currency and thus will suffer the similar problems of deflation, continuous printing.

While the situation at Venezuela is commendable, one should remember that not every country is in the same situation so it not something that will happen.

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Quote from: maianh09 on November 30, 2019, 01:40:28 PM

money washing happen anytime, anywhere that we would not know about
and asset backed crypto? not crypto only, whold economy.
and last one, the nation's own fiat it they could get it on blockchain, it should be over for bitcoin.

Kinda agreed.
Imagine also how funny it can be - to mine USD for example.
Instead of going to work you can mine money, something inside me says its how it should be.

wxa7115

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Quote from: X-ray on November 27, 2019, 06:09:55 PM

Quote from: crossabdd on November 19, 2019, 08:20:35 PM

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.

that's the problem, no one can be sure that the gold or any assets that used to backup the crypto really exist. even more suspicious if the country that offers such a thing is a rather unreliable or poor country. at that point, country like that could just outright lying because they don't care about reputation no more but instead they just want to gather as much money from the international market. Even if the showed the proof of the assets. you could never be sure because there's no way to know if they willingly hand out the asset if the crypto is to be exchanged with their asset.

This already happened, do you remember the petro that was released by the Venezuela government? It was a coin created by a government that was supposedly backed by the oil and mineral reserves of Venezuela but to this day no one has ever made a transaction with that currency, that could tarnish the reputation of any government but in the case of Venezuela they do not really care anymore they are just looking to get all the money that they can.

And that kind of attitude is what it has caused all the problems in their country, however there is a very easy way to avoid falling into that scam and that is to remember why bitcoin was created in the first place.

maianh09

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money washing happen anytime, anywhere that we would not know about
and asset backed crypto? not crypto only, whold economy.
and last one, the nation's own fiat it they could get it on blockchain, it should be over for bitcoin.

ampu

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I think the release of cryptocurrencies represents a very complex asset class. There is a specific example of tether, they issue and must always prove the money they have. Issuing assets related to gold, silver, oil and coal will require a corresponding amount of assets. After they issue, can they endorse the amount of assets they own? Orders will occur if they wish. In fact, all types of organic assets can wear out over time and risk being stolen in practice. It will take a lot of rules to realize this idea.

Topic: Asset backed cryptocoins? (Read 816 times)