RE: Smoke&Chill Chapter 2: New Crypto Coin to be backed by real Gold!!???

You are viewing a single comment's thread from:

Smoke&Chill Chapter 2: New Crypto Coin to be backed by real Gold!!???

in marijuana •  7 years ago 

Gold is never free to store, so you will always have to pay a premium to "own" it. This premium might be hidden, but it's always going to be there. If you're storing it yourself, that would be in the form of safes and transportation risk, or insurance. If someone else is holding it for you, there might be fees, or exchange premiums, but those fees will be there.

Also, if gold is used to back a crypto, it can't be trustless. You're going to have to just trust the person holding the gold, that it's actually there. If it isn't, once found out, the currency you're holding goes to zero.

Just my 2 satoshi.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  
  ·  7 years ago (edited)

Thanks for the comment... I'm not promoting the coin but just giving out information. Besides its not like its the first time currency has been pegged to gold...it was like that for a very long time....so I dont see how it cant be implemented with Crypto. Just with the notion of them wanting to peg Gold or silver to a crypto coin is HUGE!!!!!!