Asset backed cryptocoins? - page 2. | Bitcointalksearch.org

sana54210

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Quote from: Wysi on November 05, 2019, 04:31:02 AM

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.

Asset backed cryptocurrencies may help in building a nation stronger only if backward investments are done. It means you back up gold for your tokens and from the revue of selling tokens, you must buy gold again to issue more tokens. If this will not happen then asset backed coins will bankrupt like a ponzi scheme.

There are already some asset backed cryptocurrencies in the market. Even Facebook claimed that the Libra coin they were going to release is also backed by assets (you can check their website). Some articles I have seen are saying that investing stable coins (asset backed cryptocurrencies) is a huge risk and the mechanisms that are used to peg their price to the assets are complex. Some of the stable coins I know are Atlant, Digix Gold Tokens, OneGram and Cedex. I believe there are lots of others that are out there and more are still coming out.

naikturun

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Quote from: alyssa85 on November 05, 2019, 08:57:05 AM

It's because they didn't have the gold to back the coins.

Holding gold is expensive (you need a secure vault). Just simply pretending that your coin is backed by gold is a scam and these types of projects fail.

how about stock or crypto like BTC, it dont have the real goods for backed , One reason is that people consider it worth so that BTC has a value if not it's just a bunch of worthless digital numbers, and it goes well until now, if people consider cryptocoins worth so there will no doubt for it, and people will use it right?

Hallmader

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Quote from: asus09 on November 27, 2019, 09:56:42 PM

Quote from: Wysi on November 05, 2019, 04:31:02 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.

When you backed your assets with cryptocurrency you have help your self with getting much profit later, but if keep your asset with cash money and save on the bank you have help your country with your saving money but you can't help your self because assets is not increase with higher, better keep hold your money in bitcoin to increase earning and get much profit.

Just be prepared with price fluctuations along the way. The price of fiat is stable but it is also losing value over a certain period of time. Bitcoin's value is increasing in the long term but there are many price dips going there.

Asset backed crypto is good in a sense because their value is pegged on something valuable unlike other cryptocurrencies that are created without anything to support its value. But in the end, it will be all about demand.

asus09

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Quote from: Wysi on November 05, 2019, 04:31:02 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.

When you backed your assets with cryptocurrency you have help your self with getting much profit later, but if keep your asset with cash money and save on the bank you have help your country with your saving money but you can't help your self because assets is not increase with higher, better keep hold your money in bitcoin to increase earning and get much profit.

Sithara007

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Quote from: X-ray on November 27, 2019, 07:09:55 PM

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.

I don't think there is a problem with that. If the entity that rolls out this type of cryptocurrency conducts independent third party audits once every two or three months, then it can assure the investors about the backup. Else they could keep the funds in third party escrow, with strict terms and conditions for any withdrawal (ideally there should be no clause for withdrawal).

What happened with Tether is entirely due to the incompetence of its promoters. Tether used to be a currency that was 100% backed up with either USD, or funds denominated in USD. But without any prior intimation, they used that backup to give a line of credit to Bitfinex. Now this is something entirely unethical, as they were making use of money that was theoretically owned by someone else.

X-ray

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Quote from: crossabdd on November 19, 2019, 09:20:35 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.

wxa7115

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Quote from: Wysi on November 05, 2019, 04:31:02 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.

jostorres

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I think it depends on which company is trying to run the coin. Asset-backed cryptocurrencies are stable coins, they are not as volatile as Bitcoin or other coins such as Ethereum. Take Libra as an example — Facebook is already a popular brand, with over five billion users. So they are the type of organization that is expected to pull this kind of thing off. A lot of people will definitely adopt the Libra coin because Facebook is already a trusted brand.

The reason for most people using stable coins is for transactions and it won't attract most people because there are already lots of brands set out for that purpose like PayPal. As for the volatile crypto coins, those that adopt it usually see it as an investment and he always benefits them, when it doesn't they decide to quit. That's not the same for stable coins unless you're trying to save up some value for the future. I don't think any other company can pull this off except a big brand and I give it to Facebook.

huige007

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Quote from: Experia on November 20, 2019, 11:59:38 AM

I dont know if it will be going to be a nation assets like gold ang charcoal here in crypto industry because all of the country has the capability to own it and be one of the whales who will control the market in the future.

Crypto is also a good source of backed-up assets as long as you can hold it and had a patience on this kind of market situation, hopefully there were still lots of chance to make a good comeback soon in terms of uses.

It is not like that all the countries or any government can actually invest in decentralized coins. The investment in digital currencies has to be done by an individual. Even after that no one can claim to own the cryptocurrency. If you are holding just few coins, this does not makes you the authority of that coin. Moreover, if a person invests in Bitcoin then he can on make huge profits with time. Not all coins can do that and Main streaming is just a matter of time.

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Quote from: Hallmader on November 19, 2019, 10:00:54 PM

Quote from: Wysi on November 05, 2019, 04:31:02 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 have heard of many people saying the future is going to be asset backed tokens. They may be right but I cannot see a very strong asset-backed token as of this moment. There are fiat-based tokens though. They are backed with actual fiat but they are not considered asset-backed tokens. There were many attempts in the past to sell tokens that are claiming to be gold-backed but nothing is heard of them ever since. They must have all failed.

There was also a bounty in the past which they claim that it would be backed by silver though as it turns out it's not that legit and it soon lost its value. A lot of ICOs had been conducted and most of them turns out to be scam and we could also mean that in general so that's why you need to select which ICO to invest. Though honestly I think the idea of cryptocurrency backed by something like gold or silver is brilliant but it is not taken seriously. I think there was a project that is paying you could search it if I remember correctly.

cutesgirl

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Quote from: JeffBrad12 on November 20, 2019, 07:15:55 PM

Quote from: Kevondo on November 19, 2019, 08:49:54 AM

Quote from: Google+ on November 18, 2019, 10:55:41 AM

when there are assets that have cryptocurrency support it is very difficult to happen because for now cryptocurrency still has no legality that can make cryptocurrency can be used for all payments in the world, so no one can provide a clear guarantee of cryptocurrency because it still does not have support from governments throughout the country.

Or we can say that bitcoin still has to be legalized by majority of the world. However, you can find examples of companies that are actually selling their products and services in exchange of bitcoin and other altcoins. It is just a matter of time before digital currencies of decentralized nature will be legalized by governments, even if they wont want to. The reason would be mass adoptions of digital coins.

What I predicted in the future is each country will issue their own digital currency with different technologies and blockchain could be one of them. I can't see the government legalize decentralized currency to be honest. Government is created with the nature of centralization and it's opposing the cryptos nature. it's just like how china created their own crypto which ofcourse will be modified and become centralized currency controlled by china aswell. It's always like that.

When many country have backed bitcoin as assets investment at the future I thing bring positive for their economic country, not worry about how inflation increase value using bitcoin, but you have worry when use cash money as your transaction because after several year your same money not have the same value because faced with inflation way, keep use crypto as backed your assets for the future.

JeffBrad12

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Quote from: Kevondo on November 19, 2019, 08:49:54 AM

Quote from: Google+ on November 18, 2019, 10:55:41 AM

when there are assets that have cryptocurrency support it is very difficult to happen because for now cryptocurrency still has no legality that can make cryptocurrency can be used for all payments in the world, so no one can provide a clear guarantee of cryptocurrency because it still does not have support from governments throughout the country.

Or we can say that bitcoin still has to be legalized by majority of the world. However, you can find examples of companies that are actually selling their products and services in exchange of bitcoin and other altcoins. It is just a matter of time before digital currencies of decentralized nature will be legalized by governments, even if they wont want to. The reason would be mass adoptions of digital coins.

What I predicted in the future is each country will issue their own digital currency with different technologies and blockchain could be one of them. I can't see the government legalize decentralized currency to be honest. Government is created with the nature of centralization and it's opposing the cryptos nature. it's just like how china created their own crypto which ofcourse will be modified and become centralized currency controlled by china aswell. It's always like that.

BitHodler

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Quote from: el kaka22 on November 20, 2019, 10:18:27 AM

Basically all of the mathematics gets stuck at the "what if the company is not a good one" because you can't just trust a company or a person to actually have 1 to 1 backing of those coins in gold and that is why it won't happen (probably).

It depends though. There are reputable gold refiners with decades of good reputation, where if they issue a gold backed crypto currency, I do think it can work in a fairly safe and trustworthy manner.

I say fairly safe and trustworthy because you can't guarantee full backing, even not when it comes to governments, which means that you have to accept the risk that comes with such a crypto currency.

I personally will alway buy the asset directly, which means physical gold in this case, but some people might prefer the convenience of being able to easily transfer it from one place to another at low cost.

Harlot

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Quote from: el kaka22 on November 20, 2019, 10:18:27 AM

When you have an asset backed crypto currency there is usually centralization involved which is why people dislike it.
I mean it is not really that hard to have a gold backed crypto in theory for example, as long as you have one very trusted company doing it, they could potentially do an ICO and for example they sell 1 ounce of gold for 1 goldcoin or whatever they name it and if you want to buy it you pay whatever the price of 1 ounce of gold is and if you want to sell it you get 1 ounce of gold (or equal dollars) in return and so forth.

Basically all of the mathematics gets stuck at the "what if the company is not a good one" because you can't just trust a company or a person to actually have 1 to 1 backing of those coins in gold and that is why it won't happen (probably).

Well I think its a fair trade off if you asked me. Even if they are centralized in some way you can't argue to the fact that they are less volatile compared to the decentralized ones. Asset backed cryptos are not only prices through its demand but also to its financial performance because if we are talking about asset backed cryptos we are not only talking about stable coins since I we can categorized STOs as asset backed cryptos as well since they are part of a company similar to what stocks do to them. If people want some kind of diversity happening in our market and they don't want to risk all their capital to volatile cryptos they have the option to buy Stock-like cryptocurrencies.

Experia

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I dont know if it will be going to be a nation assets like gold ang charcoal here in crypto industry because all of the country has the capability to own it and be one of the whales who will control the market in the future.

Crypto is also a good source of backed-up assets as long as you can hold it and had a patience on this kind of market situation, hopefully there were still lots of chance to make a good comeback soon in terms of uses.

el kaka22

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When you have an asset backed crypto currency there is usually centralization involved which is why people dislike it.
I mean it is not really that hard to have a gold backed crypto in theory for example, as long as you have one very trusted company doing it, they could potentially do an ICO and for example they sell 1 ounce of gold for 1 goldcoin or whatever they name it and if you want to buy it you pay whatever the price of 1 ounce of gold is and if you want to sell it you get 1 ounce of gold (or equal dollars) in return and so forth.

Basically all of the mathematics gets stuck at the "what if the company is not a good one" because you can't just trust a company or a person to actually have 1 to 1 backing of those coins in gold and that is why it won't happen (probably).

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Quote from: crossabdd on November 19, 2019, 09:20:35 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.

This isn't totally good for traders and trading, it could probably lessen the market fluctuation which trader do take advantage of to gain and make profits. Stable coins are pretty useful but it should be running ALWAYS under government's premises making it that easy to track and investigate. But it is hard to believe that stable coins are backed by assets. Since it is highly regulated by the government, the idea of stable coins are being just used to manipulate the price of bitcoin is absolutely possible as researches found out some holes with this ( I'm not that very sure tho)

Quote from: crossabdd on November 19, 2019, 09:20:35 PM

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.

Well I think it's time now to support and invest of projects with backed assets. I've been dealing with this industry in past 2-3 years, and projects that I supported hasn't been on the trend since now.
It's natural not to believe on something you haven't see like proofs of backed assets, It totally depends on you in the end.

joniboini

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Quote from: Hallmader on November 19, 2019, 10:00:54 PM

There were many attempts in the past to sell tokens that are claiming to be gold-backed but nothing is heard of them ever since. They must have all failed.

I know one project that do this and still alive till today. They run a bounty campaign and in fact pays quite well, around $4k or so per month for their participant. Not sure where they get the liquidity but last time I checked, they have around 150 ETH to market-buy their own tokens from the internal exchange. Pretty sure they have some running and profitable business before they start the project as it's impossble to get 150 ETH out of nowhere. They don't do an ICO too. But that's just an outlier, I still pessimistic about the whole asset-backed crypto in general.

Hallmader

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Quote from: Wysi on November 05, 2019, 04:31:02 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 have heard of many people saying the future is going to be asset backed tokens. They may be right but I cannot see a very strong asset-backed token as of this moment. There are fiat-based tokens though. They are backed with actual fiat but they are not considered asset-backed tokens. There were many attempts in the past to sell tokens that are claiming to be gold-backed but nothing is heard of them ever since. They must have all failed.

crossabdd

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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.

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