5 votes

Gold Backed Cryptocurrency

http://au.finance.yahoo.com/news/first-bitcoin-alternative-b...

This may be one I can get behind. Need to do more research but this what I think is in the right direction as far as crytocurrencies are concerned.

What's in your wallet??

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Gold-backed cryptocurrency

I'd love to see a gold-backed crypto. So would a lot of other people. Mastercoin claims to be able to peg the price of an alt coin to the gold spot price, without any physical gold involved, but for reasons that I wrote about in one of the comments here:
http://www.dailypaul.com/309002/intro-mastercoins-this-is-a-...
I don't think they come close to succeeding in that promise (or much of anything else they claim). There have been other attempts to do the same thing as well. Google for "site:bitcointalk.org" and "gold backed" and you can quite a few discussions of ideas for doing it, none of them successful. It's the holy grail of cryptocurrency.

I don't think XNF succeeds either. From what I can figure out, what they've done here is create a new alt coin, and then offer to sell gold (or silver, and they get to pick the metal you receive) at whatever the current exchange rate is for that alt coin against the dollar, up to whatever stock they have on hand which is less than a third of the market cap of XNF. You can buy gold with bitcoin, based on whatever the current exchange rate is against the dollar, but that doesn't mean that bitcoin is "gold backed."

I can't make sense of their numbers. The gold and silver that is "backing" XNF is shown here:
http://www.nofiatcoin.com/stock-bullion.html
The metal "on stock" looks to be about three ounces of gold and less than 200 ounces of silver. That's not much. And their plan of issuing new XNF, backed only by a third of the value at that time in gold/silver, raises all kinds of red flags.

BTW, ripple is both an exchange and a currency. You can buy bitcoin on the ripple exchange, for example. The currency, XRP, has the second largest market cap of all cryptos, currently more than 3x that of litecoin so although there are some things to dislike about it I wouldn't dismiss so easily. Also, for a number of the second-generation alt coins the whole idea of "mining" doesn't apply at all, so neither does "pre-mining." Mastercoin is one example, NXT is another. That's not to say that any of these are going to be long-term competitors, just pointing it out to clear up a common misunderstanding.

A Gold Backed Cryptocurrency? Not So Fast

I did a piece on this currency. It's not a real gold backed currency.

http://www.libertariannews.org/2014/01/17/a-gold-backed-cryp...

Some people just never learn.

Some people just never learn.

I've learned that gold and silver are the only real money

all that is needed is a modern and convenient transport system.

all the other crytocurrencies are nothing, from nothing.

Nobody in there right mind would keep their money in any of these crypto-systems beyond what is needed for purchases. My view is gold and silver should be the money and a crytocurrency be merely a reloadable debit card type vehicle. Put some in the system when you are buying stuff. Take it out when you get paid with it. And keep your excess real stuff out of the system.

Maybe this isn't the one but it is in the right direction in my view. One that maintains a consistant exchange with gold and silver will be the one that I want. I don't want to lose money just because a week passed while sitting in the cryto-system.

It's definitely a step in the

It's definitely a step in the direction of a global currency based on a controlled infrastructure. You should be fine as long as you don't mind paying the price for access to your money if it's still there. Hopefully, quantum computers won't be able to crack elliptic-curve encryption within 12 hours or so so you can get some sleep. You still need access for even temporal storage. Good luck...

Hmm

This is interesting.

Backing the digital currency with gold is both good and bad.

The bad thing is it places physical risk on the currency. This has already been tried with a company called E-Gold that did the same, and got shut down. So people thinking they had digital currency worth some gold suddenly had nothing. With Bitcoin people know what they're getting - as long as the network exists and people accept the value then it has value, so you just hold as little of Bitcoin as you feel comfortable with.

The good thing about this is many people do want to hold gold/silver and this gives a way to go back and forth between the physical and virtual currency worlds.

Ron Paul has said he favors competing currencies, and now we're getting that!

Any of you that think this

is a good option are obviously stupid and don't do your research!!!!

Ripple is a corporation that you CANNOT mine coins from. They have created a network that is CENTRALIZED where they own all the coins. The only way to get them is to buy them!

Just like this XNF coin. you have to buy the digital currency from a corporation who is centralized. Who cares if they hold gold and silver if your literally paying for it!

THIS COMPLETELY CONTRADICTS WHY CRYPTO CURRENCIES WERE CREATED!

The purpose is to have a de-centralized network that is sustained by millions of users. NOT ONE!

LOL

tulips are for you then

Cryptocurrency is not a free lunch program.

"Who cares if they hold gold and silver if your literally paying for it!"

You literally have to pay for Bitcoin and other crypto currencies as well.

EDIT:
I see. You probably meant - paying for the service of someone holding it for you. Hmmm, if that was your point, good point! :D

i was gonna post this as a new thread but

i can't get behind ripple.

First Bitcoin Alternative Backed by Gold & Silver

NoFiatCoin | XNF launches new digital currency which is backed by gold and silver and can be redeemed for the same.
A new digital currency backed by gold and silver is attracting wide spread attention on the internet. Traded on the Ripple Network, this next generation cryptocurrency released by NoFiatCoin | XNF is the first coin in the digital currency market to be backed by precious metals.
http://www.prweb.com/releases/nofiatcoin/xnf/prweb11494965.htm

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
#standwithrand

Misses the mark

Digital currency is more of a social experiment than anything else.
gold backed currency is great until the centrally controlling institution that stores its backing gets shut down by violent staties who want to control money and has its specie confiscated.

no. We are not trying to replace fiat. We are trying to replace specie.

Séamusín

In the F.A.Q.

It describes the "backing" as "1/3" of the value with bullion/silver/gold.

Nice that they publish their current inventory but seems a bit suspicious.

Gold backed digital currency...

is something I've engaged, and that which has had me watch the cryptocurrencies [like Bitcoin] so closely. James Turk pioneered digital gold back in 2001. He suspended his digital currency service a few years ago as government intervention through unbearable regulation eventually posed too many obstacles. His GoldMoney remains though as a basic precious metals buying, selling, and storage service. A couple years ago I was prompted to contact him with ideas on how to transform his basic digital currency into more of that which we now refer to as cryptocurrency. The article you've posted mentions...

"NoFiatCoin (XNF) combines the best of cryptocurrency with the best of the physical world by backing it with gold and silver and redeeming it for the same."

The article bares no detail, but I'll eventually look deeper into NoFiatCoin to see if it's truly different from the others mentioned in the article.

Backed by Ripple

Yes, please come to your own conclusions. But Ripple has been long known to run scams. One of which to look out for, is a premine scam.

yep

i'm not a fan of ripple either. i'll pass on this one.
maybe chris duane can pull this off in the future, we'll see.
the problem is the commodity being seized.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
#standwithrand