Topic: What are altcoins backed by? (Read 375 times)
The course of any Altcoin depends directly on the project itself. If the project really releases a suitable product and is ready to compete in the market, its price will be high, some tokens are tied to fiat currencies.
Mostly, by greedy teams just want more money and stuff.
So that ends with %99 value loss for that altcoins mostly newer ones..
So that ends with %99 value loss for that altcoins mostly newer ones..
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?
I don't think altcoins are backed with something concrete physically, unlike real USD and other fiat currencies.
Although it is not backed by anything like precious metal, it has a high value because it is functioning like a normal currency, you can use it like money.
Real USD? It's backed by nothing - except for Mr. Donald J Trump's promises! Altcoins are backed by the promises of developers, and USD is backed by the promises of US president.
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?
of course , backed by nothing, if some altcoins backed by something or some people or legal big corporation, the prices must be stable,like usd coin.that why price soo fluctuactive and always 24/7.
the logic reason, why some people want to backing some project if the shares of that project is not controlled.
that why bank try to avoid all of crypto.
Alternatives aren't normally backed by another digital asset they are typically shares in a startup or a form of utility for a product or service, however, stable coins are backed by collateral and are becoming more popular now due to evolving use cases but make sure you research them thoroughly
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?
I don't think altcoins are backed with something concrete physically, unlike real USD and other fiat currencies.
Although it is not backed by anything like precious metal, it has a high value because it is functioning like a normal currency, you can use it like money.
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 was backed by gold in the early days when the federal reserve was founded, but this is no longer the case. Money (fiat) is now backed by nothing that's why we have inflation rising in so many country even in the united states as of today. Altcoins are backed by nothing but what the community says it is, which is way more better than what the government say it is.Moreover in realife, we do not have any back up for everything like some collectibles, for example. Collectibles are gaining its value from the demand. Similarly altcoins are getting their value from open markets based on supply and demand mechanism.
That's true; if there is any buy order, then it means there is demand. However, the collectibles do have a nice use case (like in the case of gold), which coins do not have.
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 was backed by gold in the early days when the federal reserve was founded, but this is no longer the case. Money (fiat) is now backed by nothing that's why we have inflation rising in so many country even in the united states as of today. Altcoins are backed by nothing but what the community says it is, which is way more better than what the government say it is.Moreover in realife, we do not have any back up for everything like some collectibles, for example. Collectibles are gaining its value from the demand. Similarly altcoins are getting their value from open markets based on supply and demand mechanism.
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?
Why would you ever try to asked that? I think that is just for the back end developers of the coin in order to maintain the stability and robustness of their system that is used to protect their coins.
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?
I think some altcoin not backed with anything because there are stable coin and utility coin, you can find it's mean in google. And their price can be pure from supply and demand and it is pure from market.
First of all, there are many types of altcoins to this day. So what are altcoins backed by? Let's say for example a utility token. They are tokens made by a company as a currency to purchase their products or services. So in order to do so, you have to buy their altcoin. Let's have another example, Ethereum. Ethereum is used as a gas in order to transfer tokens under its wings, without Ethereum, a transaction would be impossible. The idea behind the usage of an altcoin is what backs it.
They are backed by community, price gets decided by the what buyers are willing to pay. That's why they say, buy coins which has community behind it, it's community which gives value.
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?
I think ALtcoins are backed by technology behind them and in the future, just some coins such as Bitcoin or Ethereum are really considered as rare metals
USD backed by GOLD. All Fiat in the world, backed by gold. From the gold that each country has, money is made equal to the value of gold.
While Altcoin is a token or coin other than Bitcoin. Made by utility projects from a token and their products.
While Altcoin is a token or coin other than Bitcoin. Made by utility projects from a token and their products.
I am believe you are wrong. USD not backed by gold anymore after bretton wood agreement. USD printed based on government trust and this makes The Fed can print USD paper money as much they like. Bitcoin backed by secure network and altcoin backed by the project.
Just like bitcoins, generally speaking, altcoins don't have anything to back them up. Only demand for it. Just like fiat currencies nowadays.
USD backed by GOLD. All Fiat in the world, backed by gold. From the gold that each country has, money is made equal to the value of gold.
While Altcoin is a token or coin other than Bitcoin. Made by utility projects from a token and their products.
While Altcoin is a token or coin other than Bitcoin. Made by utility projects from a token and their products.
It is backed by the underlying technology that created it. This to many people is why it is better than the USD as it is decentralised and cannot be used to bail out the bankers that destroyed the global economy years ago
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.
I agree with your opinion. I think the comparing of cryptocurrency and fiat currency is wrong because 2 currency is completely different. The cryptocurrency is the future of currency, it very useful and help people the most in using money in the global with fewer fees.
in my opinion it is still difficult if altcoin is equated with precious metals because Altcoin itself is in a different market and only people who understand crypto currencies can use it.
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.
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.
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. 
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.
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.
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.
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
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.
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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 
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.
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.
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.
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.
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 
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.
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
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. 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.
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. 
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.
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.
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
in general the crypto currencies are not backed by anything, only the stablecoin have some guarantee behind some the dollar other gold...
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.
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.
Just take them as utility coins or we can say that they only represent the project or technology and there is no other rights like profit share or decision making of the project like we see in shares but then again we have seen altcoins gaining massive growth in value mostly because of popularity, use cases and adoption.
Well must of the altcoins are back by one project and products and the other most of them are loyalty reward system which can be convert into one product or the other except for some altcoins that have no working product to support them.
Crypto currencies were backup up by nothing because it has value from demand and supply just like the thing as gold you were mentioned and really USD not backed by by gold for now but initially government calculated the USD based on their gold storage.
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.
USD was backed by the government and they are the one that gives value to it. They create value to whatever they think is valuable of something just to let the people start using it. I'm not an economist and my opinion on this, altcoins are backed solely on its market cap I mean most of the crypto's. It can be a support from the its community or the miners who have been mining that coin. Depends on the person you ask and on how he sees the value of that specific altcoin.
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?
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