What are your thoughts on gold backed crypto?

With the current condition the market is in, I think most people run to safer investments like precious metals. Currently looking at Pecunio, a cryptocurrency backed by gold which seems pretty solid to me. Gives it greater stability and trust to invest in it. They were also recently invited to Nasdaq for an interview, so this gives it a bit more credibility. Has anyone taken a look at it or invested in any gold backed crypto?

1 Like

By the way, I would not trust _____-backed crypto. Backing only leads to centralization. Centralization only leads to government attack and confiscation. If you don’t care about confiscation, you can just buy GLD exchange traded fund directly and skip the crypto nonsense. If you do care about confiscation, you can just buy physical coins and bars and skip the crypto nonsense.

5 Likes

The current options I’m aware of are DGX and GoldMoney.com . I don’t know if DGX is available on exchanges yet but i think it’s supposed to be pegged to gold. I’m beginning to trust their parent company somewhat but am not an expert. GoldMoney.com has got something to do with Peter Schiff, who I tend to trust as well. But I don’t think it’s a crypto currency… reminds me more of e-gold…but I think they keep their gold or some of it in Switzerland?

1 Like

The government stole my e-gold! I had $100-$200 in that when it came out, then it was seized for no reason! (They say ‘money laundering’.) I had to file a claim and wait a few years to get it back. No good.

1 Like

Good way to look at it.

I hold BIT.GOLD a bitshares platform asset tracking gold price.

Bitshares is a great platform where you can reserve account names and then delegate control between accounts, there info on that:

Permissions
In BitShares, each account is separated into
Active Permission: control over its funds and
Owner Permission: control over the account.
Both can be defined in the Permissions tab of your account using so called authorities (see below) together with a so called threshold that has to be exceeded in order for a transaction to be valid.
Authorities
In BitShares an authority consists of one or many entities that authorize an action, such as transfers or trades.
An authority consists of one or several pairs of an account name with a weight.
In order to obtain a valid transaction, the sum of the weights from signing the parties has to exceed the threshold as defined in the permissions.
Examples
Let’s discuss some examples to shed some light on the used terminology and the use-cases. We assume that a new account is created with it’s active permissions set as described below. Note that the same scheme also works for the owner permissions!
(Flat) Multi-Signature
A flat multi-signature scheme is composed of M entities of which N entities must sign in order for the transaction to be valid. Now, in BitShares, we have weights and a threshold instead of M and N. Still we can achieve the very same thing with even more flexibility as we will see now.
Let’s assume, Alice, Bob, Charlie and Dennis have common funds. We want to be able to construct a valid transaction if only two of those agree. Hence a 2-of-4 (N-of-M) scheme can look as follows:
Account Weight
Alice 33%
Bob 33%
Charlie 33%
Dennis 33%


Threshold: 51%
All four participants have a weight of 33% but the threshold is set to 51%. Hence only two out of the four need to agree to validate the transaction.
Alternatively, to construct a 3-of-4 scheme, we can either decrease the weights to 17 or increase the threshold to 99%.
(Flat) Flexible Multi-Signature
With the threshold and weights, we now have more flexibility over our funds, or more precisely, we have more control. For instance, we can have separate weights for different people. Let’s assume Alice wants to secure here funds against theft by a multi-signature scheme but she does not want to hand over too much control to her friends. Hence, we create an authority similar to:
Account Weight
Alice 49%
Bob 25%
Charlie 25%
Dennis 10%


Threshold: 51%
Now the funds can either be accessed by Alice and a single friend or by all three friends together.
Multi-Hierarchical Flexible Multi-Signature
Let’s take a look at a simple multi-hierarchical corporate account setup. We are looking at a company that has a Chief of Financial Officer (CFO) and a some departments working for him, such as the Treasurer, Controller, Tax Manager, Accounting, etc. The company also has a CEO that wants to have spending privileges. Hence we construct an authority for the funds according to:
Account Weight
CEO.COMPANY 51%
CFO.COMPANY 51%


Threshold: 51%
whereas CEO.COMPANY and CFO.COMPANY have their own authorities. For instance, the CFO.COMPANY account could look like:
CFO.COMPANY Weight
Chief.COMPANY 51%
Treasurer.COMPANY 33%
Controller.COMPANY 33%
Tax Manager.COMPANY 10%
Accounting.COMPANY 10%


Threshold: 51%
This scheme allows:
the CEO to spend funds
the Chief of Finance Officer to spend funds
Treasurer together with Controller to spend funds
Controller or Treasurer together with the Tax Manager and Accounting to spend funds.
Hence, a try of arbitrary depth can be spanned in order to construct a flexible authority to reflect mostly any business use-case.

There are 2 new metals backed cryptos called digital gold and digital silver, but I don’t know much about them

I have some mining stocks - I think precious metals are best used as money for emergencies, and otherwise aren’t great investments. They are an investment in my future in that they are securing my survival given scenario X. I don’t invest in metal for the purpose of increasing my portfolio.

3 Likes

Who knows. Perhaps in future we won’t need and precious metals because information will be the most precious thing.

1 Like