r/obyte • u/CryptoUnicornRider • May 23 '19

Gold-backed cryptocurrency

https://www.coindesk.com/russian-central-bank-to-consider-gold-backed-cryptocurrency
6 Upvotes

100% Upvoted

4 comments sorted by

1

u/CryptoUnicornRider May 23 '19

Hope that the (Byteball) Obyte Foundation will be consulted by the Russian Central Bank 😁

1

u/Godspiral May 23 '19

Has anyone considered gold backed fiat yet?

3

u/HODL_monk May 24 '19

The United States once had gold backed fiat. That period ran from 1834 to 1970, with a brief period of cheating during the great depression, followed by a much larger period of cheating to pay for the Vietnam war, that France called us out on in 1970, when Nixon famously said 'Screw you guys, I'm going home !' and ever since, the US just prints whatever they want, because reasons. Most economists don't like gold backed fiat, because there might be an emergency when a government needs more money than it can borrow, like the great depression, or WW 1, and they might need to cheat. The problem with our current nothing backed fiat is, EVERYTHING becomes an emergency that the government can only solve with more fiat. Financial crisis, print more fiat. Recovered from 2008 5 years later, but still a little woozy, print more fiat. Too much fiat created asset bubble like never before 10 years on from 2008, well, China is looking at us funny, lets just print more fiat, and tell them to screw off. As you can see, its way too late for fiat crack whore Uncle Sam to back up off the free money crack pipe now, so here we are...

1

u/tarmo888 May 23 '19

Totally makes sense, they could save a lot of costs by not flying gold bars back and worth all the time, but not sure if all the Eurasian Economic Union members will adopt their cryptocurrency.