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❓ASK Should cryptocurrency be backed by a physical asset?

AudraMiller

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One of the major concerns when it comes to cryptocurrency is the fact that it can be easily manipulated in terms of the price, and to be honest with coins that do not have a set limit on their supply, new coins can be added to the network at any time, making the financial value of these coins almost endless. With fiat currency the one way that it is controlled or prevented from just printing more money is that people tend to back their fiat currency with a physical asset such as gold. Do you think that this should be the case with cryptocurrency as well? Recent research shows that Max Keiser believes that China may be looking to back crypto with gold. What do you think?
 

Mariappa45

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The question will be, what do you want to back up with cryptocurrency? If precious metals or stones are used to back the Fiat currency what will be ideal to back cryptocurrency?
 

Josemendez

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One of the major concerns when it comes to cryptocurrency is the fact that it can be easily manipulated in terms of the price, and to be honest with coins that do not have a set limit on their supply, new coins can be added to the network at any time, making the financial value of these coins almost endless. With fiat currency the one way that it is controlled or prevented from just printing more money is that people tend to back their fiat currency with a physical asset such as gold. Do you think that this should be the case with cryptocurrency as well? Recent research shows that Max Keiser believes that China may be looking to back crypto with gold. What do you think?
China banned crypto and do not have any plans of lifting the ban. It will be more of promoting their digital Yuan. Cryptocurrency needs fiat currency to operate well
 

AudraMiller

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China banned crypto and do not have any plans of lifting the ban. It will be more of promoting their digital Yuan. Cryptocurrency needs fiat currency to operate well
I do agree with you and my opinion is that if there is a link between the crypto world and the digital fiat currency world it will serve to enhance both financial systems.
 

Wisdom01

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It's like a digital currency backing it with a physical might actually make the government stop the use , because they would not allow another currency to prevail over their own physically
 

btaliat

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Since fiat currency is being backed by gold and some gem stones, I don't see any reason why crypto should still be backed by fiat. I think it should be backed with something they won't lose its value. I suggest stable coins will be better to back up crypto since it does not lose value, though it doesn't add value as well.
 

Emoney

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No, because many physical assets are manipulated by rich people, and that is against what the inventor of crypto and blockchain Sakamoto envisioned. Even USDT supposedly pegged against US dollar turn out to be a big lie that damaged its reputation among crypto fans.
 

AudraMiller

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Since fiat currency is being backed by gold and some gem stones, I don't see any reason why crypto should still be backed by fiat. I think it should be backed with something they won't lose its value. I suggest stable coins will be better to back up crypto since it does not lose value, though it doesn't add value as well.
I don't think that fiat currency will never lose its value entirely because there is going to be a lot of countries that constantly use Fiat currency because they do not have access to the technological infrastructure that is required in order to migrate their financial system over to the cryptocurrency and blockchain infrastructure.
 

btaliat

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I don't think that fiat currency will never lose its value entirely because there is going to be a lot of countries that constantly use Fiat currency because they do not have access to the technological infrastructure that is required in order to migrate their financial system over to the cryptocurrency and blockchain infrastructure.
So you are saying crypto should rather be backed by fiat currency? I may agree with you. Coins are nothing if they cannot be measured monetarily. And since fiat currency can never lose its entire value as more people will prefer having cash to digital currency, it will be better to backed crypto coin with it.
 

Wisdom01

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main point of crypto that it is not supported by physical assets i like this. i can truly say that investing in crypto is a best option, becauce for instance you have only 1000 usd and you can make it 10000. recentle i have invested 500 dollars with coinloan platform and have earned 100 usd pure profit in a week for me it is great achievment
Yeah if you have little profit you can turn it into a great amount tho , but the most important thing is to know about how to invest and when to , because as an investor you could also lose such amount of assets in day ,when you invest with high leverage ,it have some high risk level
 

AudraMiller

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So you are saying crypto should rather be backed by fiat currency? I may agree with you. Coins are nothing if they cannot be measured monetarily. And since fiat currency can never lose its entire value as more people will prefer having cash to digital currency, it will be better to backed crypto coin with it.
I think that should be the case because i think that this will ensure that when there is a rise in cryptocurrency it would be beneficial for both the coin and also for the fiat currency that it is linked with as well and this will in turn help to create a good relationship between the two currencies.
 

Wisdom01

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I think that should be the case because i think that this will ensure that when there is a rise in cryptocurrency it would be beneficial for both the coin and also for the fiat currency that it is linked with as well and this will in turn help to create a good relationship between the two currencies.
If the same increase occurs in Bitcoin and I think the disadvantage of the flat currency or Bitcoin won't be noticed ,as people's would would choose to invest with digital flat currency to buy more bitcoin and store more of the currency in a way they would actually love too
 

Tundeson

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I don't think it's a really nice idea to back crypto currency with any physical asset though fiat is backed with gold and if Bitcoin is backed with any physical asset I think it's going to be misused and manipulated by many rich people and may eventually loose it's value in the market.
 

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I think what makes crypto currency to be what it is today is the fact that it has Notting backing it or giving it value. Once crypto currency gets something attached to it, I think it would open more grounds for it to be manipulated more and also in terms of value, the value would be manipulated easily compared to before.
 

AudraMiller

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If the same increase occurs in Bitcoin and I think the disadvantage of the flat currency or Bitcoin won't be noticed ,as people's would would choose to invest with digital flat currency to buy more bitcoin and store more of the currency in a way they would actually love too
There's a lot of people that I actually converting the Fiat currency to the Bitcoin cryptocurrency because they are seeing a lot of benefit in doing so especially if they are trying to be to be high inflation rates that we are seeing however and the risk that comes with this is extremely high.
 

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