Backing Bitcoin with Gold or Stocks Misses the Point of the Blockchain
Rand Paul thinks it would be a good idea to back Bitcoin with stocks or other assets. The idea of "backing" Bitcoin with some kind of tangible commodity or asset is back in the news again due to a recent statement from Senator Rand Paul. The Senator from Kentucky stated that he'd like to see Bitcoin backed by a basket of stocks because he believes that a currency should be "backed up by [something tangible]". While the idea of combining gold and Bitcoin has already been floated by Jim Rickards and others, it completely misses the point of what Bitcoin is supposed to be. Bitcoin is the....
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Gold-backed tokens are getting increasingly popular as a more accessible alternative to investing in physical gold. What is a gold-backed cryptocurrency?A gold-backed cryptocurrency is a type of digital currency that is backed by physical gold. The currency’s value is based on the current market price of gold and can be used for transactions just like any other type of cryptocurrency.Some cryptocurrencies are backed by gold in order to tie the derivative asset (crypto) to a tangible asset (gold), thereby preventing excessive fluctuations in price. Thus, gold-backed cryptocurrency is often....
According to analyst Lyn Alden, bitcoin's correlation to stocks or gold depends on bitcoin’s own cycle.
The gold industry was shaken when it was discovered that 83 tons of fake gold bars were used to back loans worth 20 billion yuan in China. While Chinese authorities have not said whether the real gold exists or where it is, an insider claims to know what happened. The Mystery Behind the Chinese Scandal Involving 83 Tons of Fake Gold Bars One of China’s largest gold jewelry manufacturers, Kingold Jewelry Inc., was caught in a major fake gold scandal earlier this year. The company used 83 tons of gold bars to back loans worth 20 billion yuan ($3 billion) from 14 Chinese financial....
Bitcoin is nearing a psychological tipping point, gold parity. Its price has been accelerating in the past few days, increasing by $100 in just over 24 hours. Meanwhile, gold has fallen by $200 this quarter, currently standing at $1,134.45. Gold’s Price This Quarter. There appears to be a strong inverse correlation between gold and bitcoin from September to now, with bitcoin gaining $300 while gold has lost $200. The reasons for this inverse correlation are not fully clear. Bitcoin’s Price on Bitstamp. Gold usually performs well in times of uncertainty, as is often the case with bitcoin,....
A gold-backed bitcoin may not be the dream team it's made out to be. Although there has been a lot of talk about backing Bitcoin payment with gold or other assets in the past, there are now two separate projects attempting to turn this idea into a reality. Plenty of people out there believe that there is no intrinsic value behind bitcoins, which is why they want to see some kind of real asset backing a new digital currency. There aren't many people who would contend that the payment technology behind Bitcoin is not revolutionary, but they'd like to see it tied to some kind of tangible....