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If fiat currency gives you the heebie jeebies why not just buy the gold outright?

imaginenore 11y ago
Because buying things with gold is a huge pain in the ass, especially online. Storing and transporting physical gold is a big security problem that even banks haven't solved perfectly. A cryptocurrency backed by gold actually does solve these problems, assuming it's is actually backed by gold, and can keep that gold, and can be audited somehow.
- wuliwong 11y ago
  I'm just reading about this for the first time but this is how I'm seeing it as well. My first guess is that it isn't as much about being anonymous as Bitcoin and more about (1) being able to buy gold more easily and (2) having these transactions securely recorded in a blockchain. Though without a large network, is the second part very useful?
  - Kaizyn 11y ago
    Once you have a currency that isn't controlled by any one single government, then they all have to behave themselves better with respect to financial management. That is the real point of one of these schemes - to make all the governments more accountable through the global economy. If you have a gold standard, then when a country is badly managed, much of the privately-held gold naturally flows out of that country, punishing the misbehaving economy. Likewise well-managed economies tend to have large inflows of gold. Governments hate this because they're in the business of having the final say in their respective geographic regions of control.
    - imaginenore 11y ago
      Gold is not very important in any economy. It's too cheap to represent even a tenth of an economy. USA holds 8,133 tons of gold. That's 260.26 million ounces. At the current price that amounts to 260.26 * 1184.28 = $308.22 billion. For comparison, US GDP is $16.77 trillion.
- av_megan 11y ago
  Well put and yes there will be full audits yearly as well as an open door policy for customers who schedule a visit to the vault. Questions? 1-855-4-AVAULT Thanks!

Because buying things with gold is a huge pain in the ass, especially online. Storing and transporting physical gold is a big security problem that even banks haven't solved perfectly. A cryptocurrency backed by gold actually does solve these problems, assuming it's is actually backed by gold, and can keep that gold, and can be audited somehow.

wuliwong 11y ago
I'm just reading about this for the first time but this is how I'm seeing it as well. My first guess is that it isn't as much about being anonymous as Bitcoin and more about (1) being able to buy gold more easily and (2) having these transactions securely recorded in a blockchain. Though without a large network, is the second part very useful?
- Kaizyn 11y ago
  Once you have a currency that isn't controlled by any one single government, then they all have to behave themselves better with respect to financial management. That is the real point of one of these schemes - to make all the governments more accountable through the global economy. If you have a gold standard, then when a country is badly managed, much of the privately-held gold naturally flows out of that country, punishing the misbehaving economy. Likewise well-managed economies tend to have large inflows of gold. Governments hate this because they're in the business of having the final say in their respective geographic regions of control.
  - imaginenore 11y ago
    Gold is not very important in any economy. It's too cheap to represent even a tenth of an economy. USA holds 8,133 tons of gold. That's 260.26 million ounces. At the current price that amounts to 260.26 * 1184.28 = $308.22 billion. For comparison, US GDP is $16.77 trillion.
av_megan 11y ago
Well put and yes there will be full audits yearly as well as an open door policy for customers who schedule a visit to the vault. Questions? 1-855-4-AVAULT Thanks!