So this is effectively e-gold? What about decentralization? Is there any reason this won't be shut down like e-gold?
I don't think this is going to get very far...
Exactly and E-Gold, which by far the price is always dependent on how much the current price of gold.
Ok then, it is backed by gold. But what's backing gold?
It's not a real cryptocurrency, it's an informal ETF.
People that still think that true cryptocurrencies need backing do not understand how money evolves.
ya.ya.yo!
Gold is backed by scarcity as of now. That basically is it. It's conductivity and other properties aren't bad, but they don't amount to nearly the price gold has. A decentralized currency that's an IOU for gold... I'll pass, thanks.
I love Bitcoin more than anything, but gold-backed seems better than a cryptocurrency backed by nothing doesn't it?
Well, to the uninformed person it might look safer or better or whatever. Bitcoin is perfectly protected by scarcity and the size of the payment network. It has an incredible value in transmitting money. The bigger the network, the safer the whole endeavor is. Also it needs to be accepted by a lot of people.
The problem with gold here is: That company is practically in total control of the currency. If they go bust, everything's gone. Haven't we seen this in bitcoin land, huh? Gold itself has little value, as well.