Can Gold & Silver Be Put On The Blockchain?
Many gold bugs and hard money advocates still see bitcoin as being an enemy of gold when, in fact, it is complementary to gold.
They’ll often point out there is “nothing backing bitcoin” without, for even a second, realizing there is nothing backing gold either.
All value is subjective and in today’s digital age there is real value in being able to digitally transfer value nearly instantly worldwide at the click of a button for very little cost and in a way that no bank, government or other third party can block or steal.
But, with that said, nothing is a more proven store of wealth than gold and silver. And while technically nothing “backs” gold and silver, it is pretty hard to imagine many scenarios where precious metals become worthless.
So, what if the best attributes of precious metals and cryptocurrencies could be merged into one?
Precious metals backing a cryptocurrency? Many have already been launched. And, TDV’s Senior Analyst, Ed Bugos, is just putting together a special report looking at the positives and negatives of each (to make sure you receive this report you can subscribe HERE).
And, just this week, I sat down with anarcho-capitalist Anthem Blanchard, the son of the great, late gold bug James Blanchard III, and CEO of Anthem Gold to discuss the many developments in merging the precious metals with blockchain technology.
It’s a fascinating interview and you can see it here:
As Anthem pontificated, we live in one of the most interesting times in history. Everything is changing. And, those who are ahead of the curve stand to make fortunes as we have, such as 100,000% in bitcoin and 14550% in Ethereum, just to name a few.
We had told our subscribers to take profits just prior to the most recent correction in the cryptocurrencies and soon we’ll be suggesting which precious metals backed cryptocurrencies may be a good place to consider parking some of those funds.
Stick with us here at The Dollar Vigilante and subscribe to our newsletter HERE to get all our information, analysis and advice.
And, if you still haven’t checked out my free 4-video primer on cryptocurrencies, make sure to check that out HERE.
If you back cryptocurrency with gold you introduce centralized risk, since each bit of physical gold must exist in a single physical location. If you instead back gold tokens on a blockchain with cryptocurrency as collateral like BitShares does with bitGold, you have the ease of use of cryptocurrency with the value of gold.
Makes more sense.
They manipulate Gold/Silver all the time by Suppressing it.
Yeah, but if it is suppressed you can get it for a bargain price.... ;)
That is absolutely true!! It is strange that more people don't realize this.
I welcome the manipulation though. It has kept it on sale for a long time. The manipulation will end though eventually--when it is in the big player's best interests of course. We can still profit from the currently manipulated low prices though!
Slow steady accumulation over here.
it is already in my blockchain , at my wife's neck
The centralized risk in the manipulation of the metals market combined with the speculative risk of cryptos will be interesting to watch. Tokens as a stop-gap may mitigate exposure to some extent, but the endgame in crypto is for crypto to stand on its own with value driven from long-term, consistent gains. Marry that with use-case benefits like fast(er) transactions and inherent security/anonymity and it's a very short walk away from fiat.
Well, it wouldn't need to be in ONE place, you could distribute it to various third party storage facilities but obviously your risk regd. regulation and law enforcement is much larger than holding it physically.
Gold backed crytocurrency. DigixDao??
Hope Mike Maloney and the team at GoldMoney will introduce something like that soon
i own an account at goldmoney but up to now i have never purchase any precious metal from there.one of these days will try and purchase some
that is how the system will be regulated. skyrocketing values.
DigixDao - https://www.dgx.io/dgd/
https://cointelegraph.com/news/worlds-first-gold-backed-blockchain-debit-card-to-be-built-by-digixglobal-monolith
Check that out!
good stuff
Cryptos and metals do the same thing in mind. Store wealth. If they can be combined, that's a double whammy. Getting two for the price of one. That might such the banking cartels down for good.
If we can find a way to combine them, then we should. Otherwise I think they work great as a solid One - Two punch!!!
Good post Jeff
I think that if we add precious metals to the Blockchain that would seriously start to affect the world condition in a few years and would probably mean some issues with all the crypto.but that's my weak ass Minow seeing of the matter.
Cheers and all the best.
Cryptos being backed by gold!
Thanks Jeff.
I dont see why they cant compliment each other.
I personally love gold silver and crypto , im a little heavy on the metals though.
Yes, I like and own both.
A lot of people saying that “nothing backing bitcoin” but also a lot of people here in Germany saying to me, that this is cashless so we will enslave ourself using Bitcoin. A cashless society is what the elite wants to have...
Most people cannot figure out, that Bitcoin is electronic cash and is very safe and anonymous!
Gold and Silver is the best heaven for storing money but it can stolen from you very easily from corrupt governments. So I hope there will be a nice solution for this in future!
Thank you so much Jeff for sharing your video with us <3
I am sorry but how can Bitcoin be anonymous? Everybody can look at the blockchain, every transaction is visible. If you know who the people behind the addresses are you can check every transaction made.
Sure that's true. You have to mix your cryptos to get anonymous again. For example changing you BTC into Monero or Zcash and than back to a new anonymous BTC wallet. That's the only way to act nearly anonymous with BTC :)
Ok I get your point. Just took a look at Zcash....So much coins out there :-) . The concept of zero-knowledge is indeed something that can help improve the privacy, but anyway if you want to cash out, you have to use your bank-account again.... Sounds like the cat is chasing it's own tail :-D .
You can use it anonymously or better said, "pseudo-aonymously" or how should i call it?Just buy btc without any trace to your accounts or person, use vpn and maybe not your home internet connection (better to use a prepaid sim) for the transaction! Voila!
Nobody is able to connect this transaction(s) to your real person! It is possible to mix them or to buy monero/ dash and sell them again for btc.
But the best thing is: NOBODY and NOTHING is able to block, delete ,steal or freeze your money. It's all in your responsibility, not the banks or state or someone else, it gives us the power back!
Yeah I would say "pseudo-anonymously" is the right word. I am aware about the concepts of hiding your IP-Address and stuff because I am a computer scientist but tell me how are you able to make a really anonymous transaction from Fiat currency to Bitcoin i.e. as it always includes a transaction from you bank-account. I am really new to this whole crypto stuff, so apologize my lack of knowledge.
When people say such things to me, I ask them what government currencies are backed by. For most of them, it is debt or nothing. Perhaps we could say for some it is their military?
Either way though, the currencies being used are not backed by anything valuable anymore either. What currency is still backed by gold? Even the Swiss Franc is no longer backed by gold. All the currencies in use are just worthless, debt backed, 0's and 1's.
I'd much rather have crypto therefore.
I like the idea of precious metal backed crypto, however, it is much better to physically hold your gold and silver. As @troglodactyl said in his comment just a moment ago, backing crypto with gold/silver introduces risk, i.e. 3rd party risk. I've decided to remove as much 3rd party risk from my investments, so I'm investing in physical gold/silver and decentralized cryptos. Gold/silver backed crypto, unfortunately, do not fall into that category.
Thank you agreed.
An interesting question indeed. I would not trust anyone as a custodian of my gold or silver though. Keep it close to my chest.
As they say with Bitcoin, if you do not own the private key it is not yours.
The same goes for gold and silver IMO. If you do not have it in your hands what do you have?
What do you have if you DO have it in your hands? Are you going to melt it down and use it in building your own electronics? Are you going to make a plate with it to sanitize your dishes, or are you going to use it as jewelry to inflate your ego and increase your potential of being mugged? Are you going to use hunks of gold to barter with if the economy were to collapse... With bitcoin around there is limited use for Gold, other than the few utility options it may have (though there are better/cheaper alternatives to any of its utility).
"Are you going to use hunks of gold to barter with if the economy were to collapse... " <---- This one. For everything else, there is Steem Dollars! =)
Private vault services are advised for people with large amounts however.