Infubar,
A blockchain currency can't be backed by gold or any physical commodity.
The backing is the time it takes to digitally mine and the security of the blockchain.
It's still fiat currency.
John,
By no means am I an expert on blockchain or anything to do with Tech... but my understanding is blockchain is a fancy word for ledger. A ledger than records and displays every transaction ever made.
So forgive me if I use the wrong techno babble....
Point being a system that uses a ledger based on computing power backed by gold. Seems it could be done?
Again these things are like predictions, little upside for me and a ton of downside as in campfire fashion if I am wrong a dozen guys will jump my schit. I do appreciate the discussion though
The reason for the blockchain (ledger so to speak) is that it validates the coin as having been properly "mined". As in it's always traceable through all transactions back to the origin of the coin.
Think about that for a bit, always traceable back to the origin because every transaction is recorded in the blockchain.
Commodities backed money require a trusted organization always willing to redeem the money for the commodity.
If you tie it to gold you had better always have enough gold and that can limit the growth of an economy.
Much like Ukraine there are no simple anwers and pretty much everyone is playing an angle.
