Asset backed cryptocoins? - page 6. | Bitcointalksearch.org

silversurfer1958

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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.

This is just a short-term trend and it cannot be applied to the whole world. because coins are still heavily manipulated and the SEC is not involved to solve this problem.
These are just risky decisions of some financial experts in enterprises that are in surplus of capital. so I don't appreciate this strategy, it's too risky.

The Sceptical Chymist

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Quote from: alyssa85 on November 05, 2019, 05:50:37 AM

The problem with claiming that you have an asset to back your coin is that the regulators demand proof that the asset exists. Tether for example has got into trouble for not being able to prove it is backed by a reserve of dollars.

I wasn't aware of Tether's problems, but I'm not surprised. I don't really follow or care about stablecoins much, because I don't think they're interesting and they really aren't necessary. They generate a lot of discussion around here, but for the life of me I can't understand what all the hype is about.

We don't need any cryptocurrency backed by anything. There just isn't a need for it IMO, and it kind of goes against the spirit of cryptocurrency, not to mention that concepts like the gold standard are almost archaic these days. We've been using fiat backed by nothing more than a government's reputation for many years now and usually it works fine.

If you want gold, buy physical gold--not a cryptocurrency presumably backed by gold, which could be a scam. Failing that, you could always buy "paper gold" or invest in mining stocks or something similar. This concept of crypto backed by a physical asset just leaves a bad taste in my mouth.

beerlover

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I have talked about this before and I seriously think that the reality is there are not that many ways to cash out and that is why it is definitely looking like just a regular crypto coin if there is no cashing out method.

Let's say there is a stablecoin that is backed by gold right? Whatever the marketcap of that coin is the amount of gold that coins operators hold, there is a team (which makes it centralized which is the issue) that is literally all they do is get golds or storage the golds and what not and even if there is 1 to 1 ratio that every single ounce is covered with that coin, how are you going to give that coin back and get the gold instead?

You can't hence that is why asset backed ones are not popular or easily doable, there are many issues with it and can't be done easily.

alyssa85

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Quote from: NathanJB on November 05, 2019, 07:23:39 AM

There were already altcoin projects in the past that are using gold as the back up assets. For some reasons, many of those ended up as failures. I guess something about the economy of their tokens were wrong. Or perhaps they were not able to come up with institutional partners. Or it could be possible also that their product does not have anything interesting.

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.

NathanJB

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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.

There were already altcoin projects in the past that are using gold as the back up assets. For some reasons, many of those ended up as failures. I guess something about the economy of their tokens were wrong. Or perhaps they were not able to come up with institutional partners. Or it could be possible also that their product does not have anything interesting.

Wexnident

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Probably not. There's a lot of difficulties in backing a crypto with asset and there's also the fact that it's pretty difficult that crypto is backed woth the said asset just because you said so. Plus, crypto is living quite pleasantly already. I doubt that greedy corporates would even try to hoard the coins of the market since that would just lead to the coin depreciating. Constant changing of ownership is one of the things that makes BTC avoid stagnating its price.

alyssa85

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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.

The problem with claiming that you have an asset to back your coin is that the regulators demand proof that the asset exists. Tether for example has got into trouble for not being able to prove it is backed by a reserve of dollars.

The other asset backed coin - Venezuela's Petro - claims to be backed by oil. But no-one trusts the Venezuelan govt to make that oil available to give the coin value.

People would be better off sticking with regular kinds of cryptocurrency. If you want assets like gold or oil, buy the gold or oil company shares directly.

tinyteapot

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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.

Wysi

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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.

Topic: Asset backed cryptocoins? - page 6. (Read 816 times)