Contract, Each coin is a unique contract where the issuer promises to hold a certain amount of an asset for each coin issued, for example 1 oz gold
Lol, no. Use Ripple if you want counter-party risk.
Unlimited
Also lol.
Life is full of counter-party risks, but we learn which counter parties to trust and trade with.
Assume a respectable mint like Perth Mint issues contracts of 1 oz gold, there is no risk they scam you or go bankrupt.
They are already selling gold certificates, and could issue their certificate on a crypto currency instead of paper.
Unlimited supply -> Coin price will be at zero -> Coin will be used as a certificate instead of a ponzi scheme
What Im suggesting is a decentralized crypto that will store certificates from any issuer.
The market price of each certificate will be the function of the underlying asset and the trustworthyness of the issuer.