August 8, 2016 at 9:29 am #138
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”!August 21, 2016 at 6:59 pm #364
I saw this interesting discussion thread, proposing pegging bitcoin to one gram of gold:
https://bitcointalk.org/index.php?topic=174213.0September 10, 2016 at 4:37 pm #570
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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