What are altcoins backed by? - page 2.

Sanford

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Quote from: manfredmann on February 23, 2019, 09:30:13 AM

Quote from: CaMeRoNy on February 22, 2019, 05:51:04 PM

Cryptocurrencies are not supported by anything but the trust of people and the project itself, its idea. Dollars are also not backed by gold, or rather they are backed up, allegedly, but there is not enough gold in the world to buy it for that amount of us dollars.

The value of the altcoins are not supported by any or backed by something that is valuable like gold or real money. Though there are other projects claiming that there tokens are reallly back up by something valuable but it is not a guarantee. The real value of the token depend on ita demand from the investors and this is how the market price of altcoins being dictated.

This is the only real problem of cryptocurrency value is simply not confirmed. If I understand what built the Bitcoin economy and why it grew so. That with all the other altcoins is much more complicated.

manfredmann

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Quote from: CaMeRoNy on February 22, 2019, 05:51:04 PM

Cryptocurrencies are not supported by anything but the trust of people and the project itself, its idea. Dollars are also not backed by gold, or rather they are backed up, allegedly, but there is not enough gold in the world to buy it for that amount of us dollars.

The value of the altcoins are not supported by any or backed by something that is valuable like gold or real money. Though there are other projects claiming that there tokens are reallly back up by something valuable but it is not a guarantee. The real value of the token depend on ita demand from the investors and this is how the market price of altcoins being dictated.

SistaFista

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Quote from: msdjaw on February 22, 2019, 06:05:00 AM

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

True, in fiat currency, the money created and backed by physical gold reserve.
But cryptocurrency is different from fiat currency i guess. Bitcoin or other popular altcoins are not backed by anything, its value grow from the users.
I think the only backed cryptocurrency is some stable cryptocurrency such as USDT, it is backed by real USD.

encycrypto

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Ethereum and litecoin are backed by proof of work. When you're investing your power on something, it becomes valuable. Moreover, all the programmers that are working on a project make it more valuable. In short, alts are backed by code + PoW/PoS.

talkbitcoin

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All I know is that I know nothing.

Quote from: ned.ryerson on February 23, 2019, 02:07:57 AM

Now technology is still at the very beginning of its development and so far in the modern world, it is not so useful. but it develops to be such

actually the technology is pretty good and mature already and that is what cryptocurrencies are backed by. but the problem is that 90% of them are shitcoins not altcoins. which means they are worthless and their prices are only based on bubbles that they are in right now that needs bursting.

ned.ryerson

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Oikos.cash | Decentralized Finance on Tron

Now technology is still at the very beginning of its development and so far in the modern world, it is not so useful. but it develops to be such

Herbert2020

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Quote from: msdjaw on February 22, 2019, 06:05:00 AM

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin?

fiat is centralized that is why it has to be backed by something, otherwise it becomes worthless. cryptocurrencies that are decentralized don't need that so you shouldn't compare them to each other.

as for ETH and LTC, their values are only based on purely hype and the pumps and dumps they get since although they may have some small utilities that they offer but it is not meaningful enough to give them any meaningful value.

Quote

Are mathematical calculations performed by ASIC miners any useful in the real world?

your question is unclear. ASIC is a general term referred to "Application-specific integrated circuit" and these machines do a lot of different things depending on what they are designed to do. you can read this for more information: https://en.wikipedia.org/wiki/Application-specific_integrated_circuit

Felipeo

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EOSABC

Technically altcoins are backed by nothing. Like in stable coin they have to register the coin from source that's why they have backed something valuable but I also don't believe that those will work anyhow. And others project is just a idea which is backed by normal people the holders or the traders. There is nothing some people thing they have a idea and they want to share it and make some money. That's it. I think to solve this kind of thing we need some regulations for good. Not ban or something but se soft regulations for both investors and projects owner both side.

CaMeRoNy

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Cryptocurrencies are not supported by anything but the trust of people and the project itself, its idea. Dollars are also not backed by gold, or rather they are backed up, allegedly, but there is not enough gold in the world to buy it for that amount of us dollars.

Aniwura

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Most of the old and already established coins, are still relevant, because of their uses, not just in the tech world, but also for the purchase of commodities.
Talk for instance btc and ETH, which can be used to make any purchase where they are accepted. Therefore, they, including litecoin, are simply backed by commodities.

lobo13hf

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Quote from: msdjaw on February 22, 2019, 06:05:00 AM

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

It's not useful at all, and do you think it's worth while i can buy ethereum and litecoin directly without any problem or middle man? That idea doesn't make sense at all. I doubt why there was a dumb idea like that to be exist right now

GreatBug

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Quote from: msdjaw on February 22, 2019, 06:05:00 AM

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

Unfortunately, but ASICs was invented and is used exclusively for Bitcoin mining. It is possible that in the future somebody will find some other way to use these powerful processors, but at the moment they can only do one thing.

OluwaTosin10

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Quote from: el kaka22 on February 22, 2019, 12:56:13 PM

Quote from: msdjaw on February 22, 2019, 06:05:00 AM

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

No they are not backed by calculations made by asic miners in the world.
Altcoins are backed by the project itself, the idea worth money and that is what we are willing to pay for.

People buy bitcoins because they want to buy something with it, they buy bitcoin because they feel the price will go up, people buy bitcoin because they want to send money to someone and it costs too much with western union. Basically bitcoin has utility that people are willing to pay for and that is why it has a price.

Ethereum is just like the same, people want to play games on dapp so they buy it, people want to use the blockchain to create ICO so they buy it (and fund the ICO) people want to use the blockchain to improve a identity government branch so they buy it. Basically all coins have some utility and their price reflects that utility for it or the support of people for that coin.

This best explains it all, altcoins and bitcoin are backed by the people or rather investor who has purchased and sold for various reasons

I think that’s why the continuity in growth and development of crypto currency will continue

mrdeposit

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Quote from: msdjaw on February 22, 2019, 06:05:00 AM

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

What USD backed up is backed up by what? This will eventually run out of place. What is valuable is valuable because we give it value. Cryptocurrency is one of them, and they are backed up with nothing like the others (except some stablecoins). The only difference among USD and BTC is that USD is belong to state, but BTC is the public money.

fudster

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Can we say altcoins are backed by Bitcoin?

Generally its what I see here althgouh altcoins are paired with BTC, those altcoins depend to the price of BTC. Grin

Prices vary to the kind of market, if the market is having a crisis just as how 2018 were then prices are backed by fear. When prices skyrockets, its backed by hope.

Mister1k

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Quote from: Awesomus Maximus on February 22, 2019, 01:59:55 PM

The only thing backing up the altcoins, or even the fiat currencies, is the expectation of future value. If a lot of people expect a currency to be valuable tomorrow, it will be valuable tomorrow. If those same people start to lose faith in the currency from whatever reason, it won't be valuable tomorrow. It is purely psychological. The times when currencies were backed up with gold or anything else are long gone.

If you believe cryptocurrency for the long term investment then it will be valuable for one day and that will be really helpful for you. Unless if you wish to make the money by tomorrow thinking then buying top 10 cryptocurrencies than long term.

Backed with ventures silently may be but that too we cannot say surely it will be happen.

Awesomus Maximus

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The only thing backing up the altcoins, or even the fiat currencies, is the expectation of future value. If a lot of people expect a currency to be valuable tomorrow, it will be valuable tomorrow. If those same people start to lose faith in the currency from whatever reason, it won't be valuable tomorrow. It is purely psychological. The times when currencies were backed up with gold or anything else are long gone.

bitmover

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Quote from: msdjaw on February 22, 2019, 06:05:00 AM

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

USD is a Fiat currency, which is a currency not backed up by anything. Aas said above , USD is not backed by gold since long time ago.

Nothing is backing altcoins or even bitcoin. Some stable coins such as tether are supposedly backed up by USD

bitcoin-shark

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in general the crypto currencies are not backed by anything, only the stablecoin have some guarantee behind some the dollar other gold...

cabron

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https://www.betcoin.ag

I don't really know what you mean about a coin backed by ETH, I don't see it that way. The only coin backed by gold was XAU, that is just it.
Prices just depend to the bids in the market that's what it is so if the coin's demand is stronger. When a coin has use case in the platform and people really use it, the coin will have a good price since demands are going to be stronger in the market.

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