Quote from: Hagrigton on August 05, 2018, 10:48:58 AM

We all know that the US dollar is swimming in 20 trillion dollars of debt, which doesn't bode well for the future of the world economy because it depends on that currency as a reserve requirement. Everybody is predicting the crash of the USD but no one has any idea how, when, or what the alternative will be.

Here's a pretty far-out idea:

https://www.theautomaticearth.com/2018/08/gold-yuan-crypto/

A gold-backed currency guaranteed by blockchain. This would prevent something like the fractional reserve system from occuring again where banks lend out 90% more than what they physically have. Sounds feasible?

There's a reason why several of these gold backed cryptos have already popped up and pretty much has done nothing major.

I think that the primary reason is that the value of a gold backed crypto comes solely from the fact that you trust the custodian of your metals to keep it safe and not just run with it. You also trust them to run a full reserve instead of a fractional reserve. By having a gold backed crypto you're also handing over control over the entire money supply to the founder of the blockchain, as he is able to constantly add new units to circulation.

Essentially, this is going to be no different to centralised stablecoins like Tether, except with gold. I don't see how this not so trustless system is any better than bitcoin itself.