Why is there no proper Precious metals backed Crypto Currency?
Hello, today i am wondering if there is a proper crypto out there that is properly backed by precious metals?
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In the past i seen crypto coins that claim to be backed by gold but i have never seen one of these crypto back up what they say. By that i simply mean, where's the gold? Remember back in the day when you used to be able to walk into a local bank and claim gold with your useless fiat cash ( i dont cause im too young), back then we seen the gold and our fiat had value. Nowadays it's all numbers on a screen and i would guess that these gold backed crypto's are backed by paper gold that does not even really exist either. Is there a better way? and would a real gold crypto coin really work?
Many moons ago, me and a few others talked about releasing x2 ERC-20 tokens, 1 backed with silver and the other with gold were people that held the tokens could visit a website and redeem them for actual silver are gold that would be shipped to their homes anywhere in the world. As tokens are redeemed, they are burnt. Creating the actual tokens and pegging them to the spot price's is dead easy but it is very hard to buy silver are gold at spot price. We thought, ok so peg the tokens to silver and gold plus 5% to cover buying and storage fees. Eg, gold spot is $1000, our backed token would cost $1050. On the open market token owners could sell that token for $1050 are redeem it for 1 oz of gold. How good does that good folks?
Is it doable?
I think it is but is it worth the effort and would it take it off. I see these shit coins pegged to a dollar with marketcaps in a billions and i ponder to myself if they have that amount of money in the bank and could they pay everyone there money if required. Does tether have a bank account with $3.5 billion in it, i think not.
To have precious metals backed tokens, we would need to hold the precious metals. We would need 3-4 people spread over the place, 1 USA, 1 Europe, 1 Asia and 1 Ozzy to hold the actual metals and ship them out to people that redeem tokens. This is a very simple and time expensive way to do things but it would be the first of it kind to have a crypto backed by actual precious metals. I think the idea is awesome and i have waiting for almost years for something like this to be released. I see Russia is doing something but.................. well, you know. lol