Did Bitshares Just Help Create "Perfect Money"????
The other day @stan announced a new addition to the Bitshares network. It is something that most likely flew under the radar of most yet can be the foundation of the evolution of not only cryptocurrency, but money.
Bitshares is going to have a token created called the Quint. Actually this will be 5 tokens all doing different things. There will be a gold and silver versions. Also, two are going to be US based while two others are international.
This truly could be "Perfect Money".
So what is a Quint?
A Quint is a digital currency pu tout by Quintric (quintric.com) running on the Bitshares network that is backed by metal in a vault in Salt Lake City .
Read that again. It is a cryptocurrency that is backed by gold and silver.
This should really blow the minds of everyone. I know this has the gold bugs happy since most of them have been calling for a return to gold backing since Nixon removed the USD from the glad standard. However, there is so much more to this.
To start, the metal backing the Quint is not in its native form. In other words, it is not a gold or silver bar but, rather, coins created by the U.S. Mint with the bald eagle emblem on them. This adds significant value to the backing.
When one has a gold in its native format, like a bar, it has a value.
When that gold is take and shaped into a coin, it has more value.
Make something commemorative such as an Olympic Medal, that adds more value.
Take that same coin and imprint the bald eagle, making it official tender, that adds more value.
Add in the ability to send that gold coin anywhere in the world in 3 seconds, that adds more value.
The second major advantage is it gets around the many of the world's insane tax laws. The Quint is legal tender. It is not a security like all other cryptocurrency since it is backed by U.S minted gold (and silver) coins. This is a major advantage since present regulation means that each time you trade a cryptocurrency for something else, you owe tax on the gain. This does not apply to legal tender.
Another fascinating point is that the U.S. Mint is bound to produce as many gold and silver coins as requested. Hence the Quint can keep expanding to meet the demand. Yet unlike fiat which is expanded on a whim, the expansion of the Quint is backed by the corresponding coins from the U.S. Mint.
**Even though I keep mentioning US Mint, the same thing applies to the International Quint (IQuint) which is backed by the gold and silver coins from Canada, England, and even Ireland).
A challenge the cryptocurrency world has with mainstream adoption is volatility. This has been addressed in a number of ways. The biggest attempt is Tether which has obviously shown itself to have some challenges (and questions). TheBitusd and other currencies created on the Bitshares network are another basket of currencies which are tied to the USD, providing stability. The tokens are isolated in their use not reaching wide scale status.
However, the biggest issue for crypto is everything is tied to Bitcoin which is inherently volatile. Since all others are tied through their trading to Bitcoin, as that one goes, all others follow. This creates a situation where all cryptocurrencies end up experiencing a great deal of volatility.
Could the Quint be the answer to this?
Since it is a cryptocurrency that is backed by gold and silver, assets that are a lot more stable in terms of their pricing, we could see the possibility that all cryptocurrencies are tied with this token. This will remove a great deal of the volatility, at least from the currency pricing. Markets can get volatile for a variety of reasons but the crypto world is further impacted because when people get spooked about Bitcoin, it affects all else. This is something the naysayers have harped upon when talking about cryptocurrency.
We will have to see how all this unfolds. @stan seems very excited about the prospects of what is being created.
If he is right, Bitshares might just have found the "Perfect Money".
@stan's article announcing the quint
https://steemit.com/bitshares/@stan/the-mighty-quint-rears-its-head
@stan explaining it with Crypto Connie
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Pictures from Quintric.com
Following closely along. This does indeed look big, and if @stan is excited, I'm doubly excited!
Best part of this is the plan can definitely work out. The gold ETF (GLD) is a similar idea but in the stock market. Great to see it in the blockchain!
The gold ETF is not backed by physical gold one to one. You own a share of GLD does not mean you own any gold at all. It's being manipulated.
And BitGOLD is fully backed 1:1, and with ZERO counterparty risk!
My bad. Apparently Van Eck's OUNZ allows retail investors to convert to physical gold while only "authorized participants" (not us) are allowed to redeem GLD.
https://www.barrons.com/articles/a-gold-etf-that-lets-you-redeem-shares-for-gold-1468641673
If I get doubly excited does that make you quadrupally excited?
Another thing I noticed, he keeps mentioning the STEEM and BTS blockchains. I know they are both @dan but it is interesting considering that @dan and @ned have had their differences.
It seems that the emergence of EOS will help both blockchains....although @stan keeps mentioning BTS and EOS in some combination.
Someone should post this on Zerohedge for all the crypto-hater gold bugs to loose their minds!
LOL @techwizardry.
That does put them in a box....they hate crypto with a passion yet now it is being created with a gold backing...
What do they do now? How do they attack?
I'm not giving them any ideas...
This is a amazing concept. Metals backed crypto!! How can it get better than that? I’m going to be looking into this further! Thanks for the post! Upvote / Resteem
Thanks for sharing - this is very interesting and something to keep an eye out for. I'm assuming this is good news for BTS and hopefully will draw more attention to BTS. The crypto world has seems to slow down since the euphoric phase at the end of 2017.
The main argument of many against cryptocurrencies is that it has no intrinsic value. With this now i hope we get to shut down the argument of those no coiners. Having backed by gold or silver helps end speculation bringing stability in the price of the coin. This would help during major crashes . Those who buy during bull can switch to this new platform and save their hard earned money and get back up when the crash is over or much better they can buy the dip. This is exactly what some people are doing with the tether.
I think the SBD's were also supposed to act as stable coin pegged to US dollar. If SBD's peg wasn't broken then it would been a lot beneficial during crashes.
Wow this is really interesting. It will also allow people to trade out of crypto into Quint which should be stable, rather than the USD. Interesting to see what audit they propose to give confidence the metal is actually there.
I heard @stan talk about it on several occasions and I do believe in the Larimer family.
My only issue is, that the whole bitshares universe seems still to be too complicated for the average crypto joe. I always wonder, why something as genius as bitshares and the whole smart currency system has not taken off over the past years. Maybe it's just the marketing part and explaining to people how bitshares works that is missing. I really would love to use it more - especially the DEX - but they didn't manage to gain enough volume like most exchanges, to make it a reasonable option.
Pricing action is a funny thing. I think the fact these blockchains havent taken off is simply the fact the MSM is still determining, to a large degree, where the money goes. BTC got out first in the name recognition and kind of pulled LTC along with it. ETH got a lot of publicity last year because of the ICOs. Now Ripple, because of the ties to banking, is the golden child (or at least was before the pullback).
STEEM and BTS will get their due. It might take some time. It is more important to see what is being developed as opposed to get the recognition and see the prices soaring. That is death if the system cannot handle it.
STEEM, as an example, is a great blockchain but not without its challenges. There is more work to be done.
Makes sense... I know, that I need to practice patience... in some cases it's hard for me, because I can already see such a huge potential, and sometimes it seems, as if I'm the only one. Well, here I'm in good company 😀
Patience sucks...I agree with that...
Well at least a lack of it which is the area I often fall into.
Nevertheless, that is my outlook. Lots of good things happening and sooner or later, the price action will catch up.
https://qph.fs.quoracdn.net/main-qimg-5448df8ca9bd08ef51b4ec7a9244b03b.webp
The addition of PalmPay interfacing with Bitshares is a game changer.
I will have to check out your writings on PalmPay @sequentialvibe.
I wrote a quick announcement article, I will have to read your research more thoroughly.
I first had an issue setting up the account
https://steemit.com/palmpay/@sequentialvibe/palmpay-update-game-changer
Yet another thing that I didnt hear about. Bitshares is my biggest bag (and the one more in the red right now!) This makes me feel very optimistic about the future of BTS! I will happily hold forever!
Red means sales. 🤑
Ignore pricing action....it means nothing. Markets are herds of people who usually follow the loudest, not the smartest, one.
By two biggest are BTS and STEEM....and I am not worried in the slightest. There is a ton going on with BTS...
Both those blockchains have twice the number of transactions done on them each day as all other blockchains COMBINED. Value of networks is tied, in part, to what is taking place on them. Bitshares has a lot going on.
We are going to see the pricing action catch up at some point. I am all out of fiat or I would add more BTS at these levels.
I also use Bitshares @taskmaster4450
can you transfer money straight from you bank to bitshares or do you still need to go through coinbase to get cash into crypto?
You can use OpenLedger too.
I ask because coinbase is supposed to start reporting to the IRS , does openledger report your transactions?
Coinbase was targeted by the IRS....do not believe it is the last.
All centralized exchanges within the US and any countries that have reciprocating agreements will end up being hit by the IRS. They simply are not going to allow all the crypto people to go without paying their taxes.