RE: LeoThread 2025-04-01 13:00

avatar

You are viewing a single comment's thread:

By using a debt instrument backed by gold.



0
0
0.000
4 comments
avatar

I get it, but then you introduce counterparty risk.

You have to trust the custodian of the gold and everyone else in between, whereas crypto its totally trustless.

I'd still hold gold as a hedge against inflation tho

0
0
0.000
avatar

Before the Bitcoin network was brought online in 2009, there was something called e-gold (electronic gold). It was backed by physical gold and used in the way you described. For various reasons, the e-gold network went offline by 2009.

0
0
0.000
avatar

Because it was centralized! And the bankers probably didn't like it haha

Crypto networks cannot be shutdown because there is no custodian or single point of failure :)

0
0
0.000
avatar

Not all crypto networks R decentralized. BNB & Binance Smart Coin come to mind. Then there R the crypto networks of that guy whose name may as well be Voldemort.

As for E-gold, that network violated numerous USG regulations, including AML.

0
0
0.000