Topic: Will an asset-backed currency or altcoin solved the world economic problems? (Read 264 times)
June 02, 2020, 03:19:03 AM
Actually the dollar flow had reduced the value of many fiat. US using this as a long term strategy to reduce the value of many fiat. Yes it's possible to control it by the reductions of printing the Dollar. Many country market is measured in terms of dollar.And dollar as medium to value the county growth rate.So if the cryptocurrency had take the place of dollar, some how the future economy can be control by crypto.
June 02, 2020, 03:12:03 AM
I think there is no real asset backed on cryptocurrency. These are unspeculative commodities and can gain value or not in the long run. Altcoin projects that has soarly rise are due to the demand of their platform and still associated with risk. Everybody should be aware how volatile and risky this market compared to normal stocks that is backed up by fiat currency.
Example of this is bitcoin, and we all knew that this js a major coin in this market, but we should not be confident that even USD can back this up. The holders and investors that play out their trades on the market make it vulnerable but it does not mean its always a safe asset same goes to other tokens and coins.
Example of this is bitcoin, and we all knew that this js a major coin in this market, but we should not be confident that even USD can back this up. The holders and investors that play out their trades on the market make it vulnerable but it does not mean its always a safe asset same goes to other tokens and coins.
It would really be great to see an asset-backed cryptocurrency, I don't mean the stablecoin kind of crypto. One that resembles the S&P 500 index, that maybe tracks a collection of items or basket of goods, say a couple of commodities trading in the open market. basket of goods like Maize, metals, oil, real estate, etc. This could be a game-changer
June 02, 2020, 12:19:24 AM
I think there is no real asset backed on cryptocurrency. These are unspeculative commodities and can gain value or not in the long run. Altcoin projects that has soarly rise are due to the demand of their platform and still associated with risk. Everybody should be aware how volatile and risky this market compared to normal stocks that is backed up by fiat currency.
Example of this is bitcoin, and we all knew that this js a major coin in this market, but we should not be confident that even USD can back this up. The holders and investors that play out their trades on the market make it vulnerable but it does not mean its always a safe asset same goes to other tokens and coins.
Example of this is bitcoin, and we all knew that this js a major coin in this market, but we should not be confident that even USD can back this up. The holders and investors that play out their trades on the market make it vulnerable but it does not mean its always a safe asset same goes to other tokens and coins.
June 02, 2020, 12:00:20 AM
I think there is a trend developing in the world for some time now that leads away from FIAT based cash towards digital cash.
This digital cash can be a country's own centralized and state-controlled cryptocurrency (China, Russia, Venezuela and other countries)
and it can also be decentralized cryptocurrencies gaining adoption in certain countries (example : Dash adoption in Venezuela).
In order for decentralized crypto projects to gain adoption to function as pure digital cash, they will need :
* Speed in their transaction settlement (sender --> protected against doublespending --> receiver --> spendable by receiver)
* Ease of use
* Secure
* Low transaction fees
* Function as FIAT cash
There can also be decentralized crypto projects that have a focus on something else then functioning as pure cash (for example crypto projects that
focus on smart contracts or focus on providing stability through backing by other assets or focus on functioning as digital gold).
I suspect it will take at least 5 more years before this ongoing move towards digital cash / digital payments / society digitization fully materializes and
replaces certain FIAT structures.
This digital cash can be a country's own centralized and state-controlled cryptocurrency (China, Russia, Venezuela and other countries)
and it can also be decentralized cryptocurrencies gaining adoption in certain countries (example : Dash adoption in Venezuela).
In order for decentralized crypto projects to gain adoption to function as pure digital cash, they will need :
* Speed in their transaction settlement (sender --> protected against doublespending --> receiver --> spendable by receiver)
* Ease of use
* Secure
* Low transaction fees
* Function as FIAT cash
There can also be decentralized crypto projects that have a focus on something else then functioning as pure cash (for example crypto projects that
focus on smart contracts or focus on providing stability through backing by other assets or focus on functioning as digital gold).
I suspect it will take at least 5 more years before this ongoing move towards digital cash / digital payments / society digitization fully materializes and
replaces certain FIAT structures.
June 01, 2020, 10:24:46 PM
There will be no unlimited supply and it will release it based on the existing fiat money that has already distributed. Unlimited supply means inflation. You should take a look at how digital yuan is working right now.
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True! The basic idea of the economy is how we allocate the supply efficiently to meet our demands. There's no unlimited supply in any kind of nation to avoid inflation which could bring the economy to a great regression after that.
June 01, 2020, 10:19:14 PM
Very interesting, I am also hope that this process will be realized especially when the pandemic continues in all countries. All people also understand that support from many parties is also very important especially the local government in becoming a legitimate and well-accepted means of payment by the community.
I have seen there had been lots of projects tried to prove themselves as an asset backed cryptos but none of them survived till date. I guess 1gram was a project which stated like they were backed by gold but this community simply ignored them and for long duration I have not heard anything from them; probably might have got abandoned. Do you really think it will be easier or possible to make a new crypto be used by more people suddenly?We do not need a coin which is going to solve the economic problem as that is not common across this globe which is having lots of different countries. What we do need is high value for bitcoins which will definitely help me to fight against the current slow economic situation in my country.
June 01, 2020, 09:28:06 PM
Good days guys,
The wave of recession is already kicking hard and people are getting laid off in a massive workforce cut. Central banks are also cutting down rate and the U.S is already proposing a negative interest rate, and of course, don't forget the continuous printing of trillions of dollars out of thin air. The problem with excessive money printing is that it solves immediate economic problems and imposes a harder one in the long term, through currency devaluations and hyperinflation.
What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment? This is more like returning to the possibilities that existed during the era of the gold standard, will such a move solve at least a majority of the world's financial problems?
Asset backed means gold? We have gold then why we need a token backed up by gold so this is not going to change anything.The wave of recession is already kicking hard and people are getting laid off in a massive workforce cut. Central banks are also cutting down rate and the U.S is already proposing a negative interest rate, and of course, don't forget the continuous printing of trillions of dollars out of thin air. The problem with excessive money printing is that it solves immediate economic problems and imposes a harder one in the long term, through currency devaluations and hyperinflation.
What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment? This is more like returning to the possibilities that existed during the era of the gold standard, will such a move solve at least a majority of the world's financial problems?
Why do you think decentralized payment system like bitcoin could not be a solution to this?
I think whenever I look at this I am looking at a currency that could escape the excessive printing out of thin air. A currency backed by an asset that has a limited supply could possibly put an end to the frivolous money printing.
There will be no unlimited supply and it will release it based on the existing fiat money that has already distributed. Unlimited supply means inflation. You should take a look at how digital yuan is working right now.
June 01, 2020, 03:24:31 PM
Very interesting, I am also hope that this process will be realized especially when the pandemic continues in all countries. All people also understand that support from many parties is also very important especially the local government in becoming a legitimate and well-accepted means of payment by the community.
I have seen there had been lots of projects tried to prove themselves as an asset backed cryptos but none of them survived till date. I guess 1gram was a project which stated like they were backed by gold but this community simply ignored them and for long duration I have not heard anything from them; probably might have got abandoned. Do you really think it will be easier or possible to make a new crypto be used by more people suddenly?We do not need a coin which is going to solve the economic problem as that is not common across this globe which is having lots of different countries. What we do need is high value for bitcoins which will definitely help me to fight against the current slow economic situation in my country.
June 01, 2020, 03:00:44 PM
I am with Findingnemo. Creating asset-backed token simply repeat the earlier history of currency and see how it goes now. Aside from that, unless the government issue this cryptocurrency, it won't have any help to solve the economic problem. One of the reasons is that the global problem is too huge to be solved by an independent small group. Government with huge fundings had never solved this economic problem, what more an asset-backed cryptocurrency issued by an independent party.
aside from Government efforts, I believe independent parties could still do a lot in achieving stability in the economy. TBH, cryptocurrency would have achieved wide adoption if the government was keen enough to draft favorable crypto regulations. Unfortunately, government is intentionally inhibiting the growth of cryptocurrencies as they view it to be a big threat.
June 01, 2020, 06:55:40 AM
Good days guys,
The wave of recession is already kicking hard and people are getting laid off in a massive workforce cut. Central banks are also cutting down rate and the U.S is already proposing a negative interest rate, and of course, don't forget the continuous printing of trillions of dollars out of thin air. The problem with excessive money printing is that it solves immediate economic problems and imposes a harder one in the long term, through currency devaluations and hyperinflation.
What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment? This is more like returning to the possibilities that existed during the era of the gold standard, will such a move solve at least a majority of the world's financial problems?
Asset backed means gold? We have gold then why we need a token backed up by gold so this is not going to change anything.The wave of recession is already kicking hard and people are getting laid off in a massive workforce cut. Central banks are also cutting down rate and the U.S is already proposing a negative interest rate, and of course, don't forget the continuous printing of trillions of dollars out of thin air. The problem with excessive money printing is that it solves immediate economic problems and imposes a harder one in the long term, through currency devaluations and hyperinflation.
What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment? This is more like returning to the possibilities that existed during the era of the gold standard, will such a move solve at least a majority of the world's financial problems?
Why do you think decentralized payment system like bitcoin could not be a solution to this?
I think whenever I look at this I am looking at a currency that could escape the excessive printing out of thin air. A currency backed by an asset that has a limited supply could possibly put an end to the frivolous money printing.
June 01, 2020, 06:48:43 AM
Good days guys,
The wave of recession is already kicking hard and people are getting laid off in a massive workforce cut. Central banks are also cutting down rate and the U.S is already proposing a negative interest rate, and of course, don't forget the continuous printing of trillions of dollars out of thin air. The problem with excessive money printing is that it solves immediate economic problems and imposes a harder one in the long term, through currency devaluations and hyperinflation.
What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment? This is more like returning to the possibilities that existed during the era of the gold standard, will such a move solve at least a majority of the world's financial problems?
The wave of recession is already kicking hard and people are getting laid off in a massive workforce cut. Central banks are also cutting down rate and the U.S is already proposing a negative interest rate, and of course, don't forget the continuous printing of trillions of dollars out of thin air. The problem with excessive money printing is that it solves immediate economic problems and imposes a harder one in the long term, through currency devaluations and hyperinflation.
What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment? This is more like returning to the possibilities that existed during the era of the gold standard, will such a move solve at least a majority of the world's financial problems?
How can an asset-backed cryptocurrency be the solution to any global financial problem?
By "asset-backed currency" you mean a stablecoin,right?There are a few stabelcoins already in existence and none of them is widely accepted.The problem with stablecoins is that nobody trusts the stablecoin creators about having a 100% reserve that covers the value of all the coins in circulation.
The gold standard had it's pros and cons and I don't think that the world is going to return to the gold standart.Returning to the gold standard is NOT a financial "panacea",that will magically solve all financial problems in the world.
May 31, 2020, 05:22:30 PM
Bitcoin was launched amidst the 2008 crisis, and it didn't change anything back then, and now it had absolutely zero impact on the coronavirus crisis. You can't invent countless asset-backed coins, but without having adoption it won't solve anything. And people don't adopt crypto because there's way too much downsides with it - complex to use, security risks, price volatility and so on.
May 31, 2020, 01:08:17 PM
snip~
I think whenever I look at this I am looking at a currency that could escape the excessive printing out of thin air. A currency backed by an asset that has a limited supply could possibly put an end to the frivolous money printing.
If we take a look at the evolution of fiat money they also started with backed up by gold reserves of each country but now it is backed up by nothing so we no need backed up currency we just need the currency which has its own value due to its demand and supply.I think whenever I look at this I am looking at a currency that could escape the excessive printing out of thin air. A currency backed by an asset that has a limited supply could possibly put an end to the frivolous money printing.
Cryptocurrency is more than money, in my opinion. It more like an autonomous nation with its own currency/tokens. So you can program it (perhaps with new internal coin/token) to do what you want, like "asset back up"... This won't necessarily change what the main native coin is meant to do
May 31, 2020, 11:57:22 AM
What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment? This is more like returning to the possibilities that existed during the era of the gold standard, will such a move solve at least a majority of the world's financial problems?
I'm not coming up with background of economy studies hence it is completely hard for me to understand your point. Could you please elaborate more on how a new payment processor which is backed by some asset will solve the problems of recession which may start at any time due to current pandemic. In my understanding all the altcoins are getting their value based on speculative which means people may buy and hold some cryptocoins and may make money out of it. Other than this, I could not understand any economic value they could find from it which will be helping them to fight against recession.I may be wrong because I'm not completely getting your point. All the above, how will you make a new payment system to be well accepted by everyone all of a sudden. I mean even you will be bringing up such payment, it may be taking more time to make it familiar among common people. So, nothing will be saving us from the upcoming pandemic triggered recession.
May 31, 2020, 11:20:45 AM
Well, the world economic problems acnt be solve must by any altcoins backed by a currency because the world is dynamic in its economic. We have hard many assets and altcoins backed with difference currency but still nothing good actually came out of them in this regard. We should know that, the world economic problems as at now can't be solve through any digital currency even the Bitcoin itself. The world economic problems will stay with us and can only be solve partially through the use of Digital assets backed by currency with some sort of supply in its demand.
May 31, 2020, 11:02:46 AM
snip~
I think whenever I look at this I am looking at a currency that could escape the excessive printing out of thin air. A currency backed by an asset that has a limited supply could possibly put an end to the frivolous money printing.
If we take a look at the evolution of fiat money they also started with backed up by gold reserves of each country but now it is backed up by nothing so we no need backed up currency we just need the currency which has its own value due to its demand and supply.I think whenever I look at this I am looking at a currency that could escape the excessive printing out of thin air. A currency backed by an asset that has a limited supply could possibly put an end to the frivolous money printing.
Cryptocurrency is more than money, in my opinion. It more like an autonomous nation with its own currency/tokens. So you can program it (perhaps with new internal coin/token) to do what you want, like "asset back up"... This won't necessarily change what the main native coin is meant to do
May 31, 2020, 10:36:43 AM
Well, is a complex question... When the Dollar was backed with gold was it a perfect economy? The answer is no, because poverty was a reality at that time.
A lot of tokens comes as an asset-backed currency, the project backup the coin in theory? but why then they fail that hard? because it is easy to run with all the investors' money.
SO, if today we backup bitcoin with gold, they will only make from bitcoin a stable coin, but it will not fix the current economic problems.
A lot of tokens comes as an asset-backed currency, the project backup the coin in theory? but why then they fail that hard? because it is easy to run with all the investors' money.
SO, if today we backup bitcoin with gold, they will only make from bitcoin a stable coin, but it will not fix the current economic problems.
May 31, 2020, 10:32:23 AM
I am with Findingnemo. Creating asset-backed token simply repeat the earlier history of currency and see how it goes now. Aside from that, unless the government issue this cryptocurrency, it won't have any help to solve the economic problem. One of the reasons is that the global problem is too huge to be solved by an independent small group. Government with huge fundings had never solved this economic problem, what more an asset-backed cryptocurrency issued by an independent party.
May 31, 2020, 10:31:15 AM
Asset-backed crypto (especially physical assets) would be a really good thing.
It should however be possible to have the holders of such cryptos to have full control of the assets once they hold the cryptocurrency. If for example I am holding a cryptocurrency that is backed by good foods, herbs, mobile homes, survival stuff, etc I should automatically have full control of the assets and be able to pick them up whenever I want once I have access to the crypto private keys
It should however be possible to have the holders of such cryptos to have full control of the assets once they hold the cryptocurrency. If for example I am holding a cryptocurrency that is backed by good foods, herbs, mobile homes, survival stuff, etc I should automatically have full control of the assets and be able to pick them up whenever I want once I have access to the crypto private keys
May 31, 2020, 10:29:10 AM
What would be the asset to back that altcoin that you're describing? I've seen several ideas and projects like this but many of them didn't take a long stand in the market. If solving the world's economic problem is what you're determining to see, it wouldn't be as quick as you may think.
The precious metals backed altcoin didn't really get much traction in the past. Maybe this time they will or maybe not.
The precious metals backed altcoin didn't really get much traction in the past. Maybe this time they will or maybe not.
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