Ninjastic
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Post
Topic
Board Speculation (Altcoins)
Re: Crypto backed assets
by
damberg
on 13/01/2019, 11:16:48 UTC
Quote from: aervin11 on January 13, 2019, 03:37:50 AM
Quote from: South Park on January 11, 2019, 05:53:22 PM
Quote from: NeoAnderson00 on January 10, 2019, 10:13:53 PM
Anybody know of any crypto-currency backed by actual assets?

I only know of one crypto-currency backed by assets.
Besides the currencies that are supposedly backed by fiat there were also in the past some cryptocurrencies that their creators claimed were backed by gold and all of them failed, if you ask me a cryptocurrency backed by anything is a contradiction, we are trying to be decentralized here and if you want a coin to be backed by something then you will need to trust in a centralized party to keep hold of whatever backs that coin so a cryptocurrency backed by something is not a cryptocurrency in my eyes.

Exactly! It won't be decentralized if the crypto is tied with a centralized asset. It's just creating a confusion that investors might get comfortable of investing because it's backed by something. This seems like a ponzi scheme to me

Moreover, backing or tying a cryptocurrency to another asset requires a proper valuation (and ongoing revaluation) of underlying asset. That is difficult and for example banks employ large teams to do it.