Quote from: LordJohn on June 23, 2014, 03:52:58 AM

Ok, like the title says. I'm thinking of making a new coin but with a difference of it being backed by an asset. The asset I was thinking of using would more than likely be silver. My idea behind this is that at least then there is some actual starting value.

Any thoughts from you guys. It's only a thought at the moment just trying to gauge what the interest in such a coin would be like.

There is no such thing as "backing" tokens (digital, paper, or any other) by physical metals. People have had luck pretending that such an idea exists, so you could go that route if you are interested in fraud.

Another option is to set up a company / entity that promises to redeem any tokens with the precious metal. In this case all users are trusting the central company/entity to do the redeeming so there is no need for the decentralized structure of a block chain. If this type of operation is what you seek (a la e-gold), you can make a better service without mining and an altcoin style ledger.