Will an asset-backed currency or altcoin solved the world economic problems? - page 2.

Findingnemo

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Quote from: cryptoboy007 on May 31, 2020, 05:07:44 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.

marks1976

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I thought that you meant about altcoin backed by asset/commodity or currency. So many services have already started to accept altcoins backed by fiat currently and there was a very high chance for this kind of coin to be accepted as a payment system.

It's also helping to solve the problem in the financial sector.

crwth

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Quote from: Upgrade00 on May 31, 2020, 03:28:34 AM

Injecting funds into the market out of thin air is not a solution to the problem, it's just a way of encouraging spending to help support the economy, it also does not lead to an increase in employment. When money is printed by he banks out of thin air, it increases the amihnt in circulation and an increase in supply this decrease the value of the currency and increases the value of assets, leading to inflation. Other would adversely affect the economy in the long run.

Just like what cryptoboy007 said, it's going to be a temporary thing. Maybe the current financial crisis is being solved by COVID by resetting the system. (This is the thread I'm referring to). The evidence there is quite interesting. It might be what's happening if you see it in a political view.

Quote from: cryptoboy007 on May 31, 2020, 04:05:12 AM

I get your point and you should also recall that I mentioned that continuous money printing only solves temporary needs and backfires in the long run. when I think of asset-backed currencies, I usually don't have USDT or PAX in mind, TBH. They are just another dollar in digital form with no end in supply. in real terms, I am referring to a possible gold-backed currency, silver-backed currencies, currencies backed by basket-of-goods, etc. I don't think any altcoin has fully achieved this but a few of them are already coming up with such an idea already, a good example is AXIA, a currency backed by some basket-of-goods. I feel a brand new monetary system is about to be birthed but I don't know how and what form it will take!

Thanks for clearing it out with that. I haven't heard or read anything about AXIA though. Upon looking at the website, it seems like it's like any other coin. They have a very interesting FAQ page though, like the Monetary theory

cryptoboy007

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Quote from: Findingnemo on May 31, 2020, 03:56:40 AM

Quote from: cryptoboy007 on May 31, 2020, 02:47:54 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.

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.

YOSHIE

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Quote from: cryptoboy007 on May 31, 2020, 02:47:54 AM

What do you think about the possibility of an asset-backed altcoin or currency rising to become a well-accepted means of payment?

I think what you say "no" will and ever does, a currency in the form of an altcoin exchange will restore the economy while this is happening, it won't.

The recovery of the world economy has no impact on Altcoin as you have dreamed, The world economy tends to recover, leading to significant changes made by humans to economic activities on the basis of the needs and consumption of increased demand for the currency of each country

If this is happening now, another way to economic recovery is by loosening social activities, by that way economic activities can freely move towards prosperity again, Many ways that can be done by the state to restore the global economy, does not affect the currency supported by altcoin itself.

Altcoin does not help to restore the global economy, Altcoin can only be done in the form of futures investment, and even then must require knowledge and a certain time if you want to get good results.

cryptoboy007

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Quote from: crwth on May 31, 2020, 03:05:23 AM

Isn't the printing of money out of thin air already the solution to the problems that we have now? Think about it, they are doing that because of the current economic situation. There are a lot of people who will work and wants to get paid more and maybe the government is going to reward that.

Right now, we have those USD backed currencies like USDT, USDC, etc. and getting it accepted could be one solution but right now, governments are focused on not letting people get more infected and the result of that is the economic breakdown. Think of these backed currencies, most of the assets are in USD. Then you are probably still within the "printing out money out of thin air" statement. It wouldn't solve it right away, for sure.

I get your point and you should also recall that I mentioned that continuous money printing only solves temporary needs and backfires in the long run. when I think of asset-backed currencies, I usually don't have USDT or PAX in mind, TBH. They are just another dollar in digital form with no end in supply. in real terms, I am referring to a possible gold-backed currency, silver-backed currencies, currencies backed by basket-of-goods, etc. I don't think any altcoin has fully achieved this but a few of them are already coming up with such an idea already, a good example is AXIA, a currency backed by some basket-of-goods. I feel a brand new monetary system is about to be birthed but I don't know how and what form it will take!

Findingnemo

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Quote from: cryptoboy007 on May 31, 2020, 02:47:54 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.

Why do you think decentralized payment system like bitcoin could not be a solution to this?

Upgrade00

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Quote from: crwth on May 31, 2020, 03:05:23 AM

Isn't the printing of money out of thin air already the solution to the problems that we have now? Think about it, they are doing that because of the current economic situation. There are a lot of people who will work and wants to get paid more and maybe the government is going to reward that.

Injecting funds into the market out of thin air is not a solution to the problem, it's just a way of encouraging spending to help support the economy, it also does not lead to an increase in employment. When money is printed by he banks out of thin air, it increases the amihnt in circulation and an increase in supply this decrease the value of the currency and increases the value of assets, leading to inflation. Other would adversely affect the economy in the long run.

Quote from: cryptoboy007 on May 31, 2020, 02:47:54 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?

Global adoption for a cryptocurrency as a means of exchange is not feasible at the moment. I also doubt if an asset-backed currency is the solution, as it has to be backed by an asset that is resistant to the economic crisis. Centralization and scalability issues would also limit it.
The world is still run by fiat currencies, while cryptocurrencies are mostly viewed speculatively, or as a means to hedge funds.

Bitstar_coin

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The question is if people are willing to trust such currency enough to see it as the solution to the recession and accept it, besides, such currency must have been around for sometime to be able to do that, there are some alts backed with cold or other assets already in the market but do they have what it takes to be the number one currency to solve this problem, it is much easier said than done.

crwth

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Isn't the printing of money out of thin air already the solution to the problems that we have now? Think about it, they are doing that because of the current economic situation. There are a lot of people who will work and wants to get paid more and maybe the government is going to reward that.

Right now, we have those USD backed currencies like USDT, USDC, etc. and getting it accepted could be one solution but right now, governments are focused on not letting people get more infected and the result of that is the economic breakdown. Think of these backed currencies, most of the assets are in USD. Then you are probably still within the "printing out money out of thin air" statement. It wouldn't solve it right away, for sure.

cryptoboy007

jr. member

Activity: 49

Merit: 2

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?

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