BGG gold backed crypto? Goldgate.io

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spideynut
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BGG gold backed crypto? Goldgate.io

Postby spideynut » Sat Mar 03, 2018

I did a quick search on here and didn't see anything. I read their website it seems like a great idea.... But there's a lot of great "ideas" in crypto land. Any thoughts?

1 bgg token is backed by 1gram of gold. From what I could tell they didn't buy the gold yet?

https://goldgate.io
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SilverDoge
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Re: BGG gold backed crypto? Goldgate.io

Postby SilverDoge » Sat Mar 03, 2018

Below is a comment I made in the Bitcoin thread on 04SEP17 in regards to "gold-backed" cryptos that are declared legit by a government (and now we actually have the Petro :roll: thanks to Venezuela). The same comments could be applied to a private company making an asset-backed crypto except it actually has more risk, because it would need to be centralized in some aspects and therefore an easy target for any government to seize, declare illegal, etc. You also have the risk of auditing, rehypothecation, option for physical delivery or not, and many other risks. Now this doesn't mean I am against blockchain identity and owning assets on a blockchain. But that is quite different from claiming a blockchain has worth or value due to the asset backing it up. I am referring to proof of ownership of an asset (like a house or car) on a blockchain to prove ownership of that asset.

SilverDoge wrote:
agnostic wrote:"As I have said before, I would look for trading in the new Eastern oil benchmark to be based on a highly sophisticated cybercurrency in which gold is part of the blockchain underlying the currency. Moreover, this cyber currency is likely to dominate all trading at least throughout the Eastern part of the world. Bitcoin investors should be paying close attention. My guess at the moment is that the cybercurrency underlying oil trading won’t be bitcoin, as it might be too difficult to institute a new blockchain for bitcoin that includes gold. (Remember, any cybercurrency is only as good as its blockchains, which ensure the currency’s incorruptibility and allow for distribution among the different “miners” of the cybercurrency.) If I’m right, bitcoin becomes another fiat currency with nothing to back it up."


http://kingworldnews.com/man-first-pred ... rediction/


King World News, sigh. The expert is referring to "cybercurrency" - that's a new one. The cryptos use cryptography to secure digital signatures, hence the name. It is hard to take some expert seriously when he can't even use the right terms. Then he proceeds to say bitcoin will just be another fiat currency with nothing to back it up [facepalm]. Seriously? There are 2 colossal errors in that sentence alone. Fiat is literally an authoritative decree. Like the USD which has no value except that the government declared it so, and you must pay taxes with it - and so we all play along like it has value as we get poorer each year through inflation (stealth tax). That is fiat. Bitcoin is nearly the exact opposite. There is no person, entity, or government forcing or declaring anyone to use bitcoin for anything. Completely voluntary, with many people and governments fighting it the whole way. Nothing backing it up? Besides the largest computer network, the computer programmers, the protocol itself, the user network, the infrastructure, etc etc. If by nothing backing it up, he means no government forcing it down our throats at the threat of jail or a gun - then yes, he is correct.

So, if a government uses a cryptocurrency and claims it is backed by gold, or oil, or chickens, it is completely irrelevant. Why? Because 1) we don't believe them. They have lost the faith of the people, they have no credibility. When was the last time the US gold holdings were audited for real? 1953? And we don't even use the gold for anything - it isn't backing the USD, but still it is shrouded in secrecy. 2) The whole point of a crypto is decentralization - which you can't have if the government is controlling the currency. Yes, they can still use a blockchain, but so what. 3) Who will verify what the chosen commodity to back the crypto exists, and there is enough of it there? Will it be redeemable for that commodity? Answer - no it won't be.

I get how gold bugs may want to merge crypto and gold (or oil) into a new currency system but in order to implement it, a government would have to remove all the best features of the crypto. What these people don't get (or do they?) is that crypto allows us to remove currency control from the power of governments, and into the hands of the users, miners & programmers. That is called technological and societal disruption.
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Long John
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Re: BGG gold backed crypto? Goldgate.io

Postby Long John » Sat Mar 03, 2018

I already have gold-backed assets in my safe deposit box. It's round, shiny, kinda yellowish with attractive designs. It's pleasant to hold and look at, too. Alas, there's nothing crypto about it. I can live with that deficiency. But I know for a fact every troy ounce I think I own represents a troy ounce of gold ... and I don't have to take anyone's word for it.


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