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  • #138

    temelco
    Moderator

    There has been an on going debate about Cryptocurrencies as to whether they should be backed by assets.

    The argument runs that,for example, if we were to say that 1000 Scotcoin is backed by 0.1grms of gold, then, of course, the price of Scotcoin would be tied to the price of gold.

    There is an advantage if a cryptocurrency is being used as a medium of exchange by workers in eg America, sending money to the Philippines , as this would mean the exchange rate didn’t vary much. On the other hand, the price of the coin could never rise further than the price of the underlying gold.

    Of course, you would want the price pegged at a high price rather than a low price, but I’d be interested to hear people’s views.

    We want Scotcoin to be the “go to” digital currency for Scotland. Help us “make it so”!

    #364

    scotvote
    Participant

    I saw this interesting discussion thread, proposing pegging bitcoin to one gram of gold:
    https://bitcointalk.org/index.php?topic=174213.0

    #570

    Cryptomomicon
    Participant

    Err, No.
    Defeats the advantage of not being a decentralised unpinned currency , traded as freely as the wind. What happens when the underpinning commodity price drops? The currency has to devalue. For a token of value, that’s a terrible idea.

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