The Perfect Cryptocurrency...

I've been thinking about this a lot lately...what would make the perfect cryptocurrency?

Here are my thoughts on what would make the perfect cryptocurrency.

Since the supposed purposes of a cryptocurrency are:

1. to have a limited supply, so that the value cannot be manipulated,

2. privacy - especially with Verge, which is run through Tor and I2P networks to obfuscate the transactions, making them virtually untraceable,

3. to (hopefully) one day replace all fiat money, which can be created and manipulated by corrupt central bankers and governments at will, stealing value from the people until said currency is practically worthless. (See Venezuela as the most recent example.)

4. some other purposes, which I will not go into right now and which would not be relevant to this post anyway.

Ron Paul said in a recent Youtube video

- that he would like to see a cryptocurrency that was backed by silver or gold or something of value.

My thinking is that the perfect cryptocurrency would be backed, let's say for instance, by the Thompson / Reuters Commodity Index (^CRBFTR). It's been around since the 50's. It seems to (at least lately) be hanging around $500 or so. The perfect cryptocurrency would be tied to this index (or one like it) so that the price of 1 unit of the cryptocurrency is permanently linked to the value of the index. Say for instance in a 1:100 ratio. If, for instance, this crypto tracked the ^CRBFTR, and this index was at 522.65 (as it is at the time of this writing), then the crypto would be worth $5.2265.

It would not move up and down based upon buying and selling of the cryptocurrency, which could produce some rather wild swings, but it would instead track the Commodity index on a 1:100 basis, and therefore be backed by something tangible, which will never lose all of its value. Let's face it, people will always want, need, and use commodities.

It would have to have a HUGE, yet limited supply. Let's say, just to start with, that the cryptocurrency had enough coins created to equal the current M2 money supply (a figure used by the US Federal Reserve to track all of the money in the USA in people's pockets and homes, and in checking and savings accounts).

According to this article: https://money.howstuffworks.com/how-much-money-is-in-the-world.htm , there are about 10.5 trillion US dollars floating around out there somewhere. I do not know how much money there is in the entire world, so let's just use this figure for now.

So, let's say this particular "perfect cryptocurrency" was limited to 10.5 trillion coins.

Now, we've got a cryptocurrency with a limited (albeit huge) supply, a fixed value that tracks something of value (the commodities index), that is as secure and as private as Verge, whose price or value cannot be manipulated by central bankers or lowlife pump and dump scammers.

I believe that at some point in the near future, such a cryptocurrency will emerge, and when it does, we will all be better off for it. No more having the value of our savings stolen by corrupt central bankers through inflation, incredibly good privacy, stable value that cannot be manipulated by traders, and a large enough supply for virtually the entire world.

This article is of course not perfect, and of course I would expect some tweaks would need to be made for it to be workable and for this "perfect crypto" to be accepted by all, but I believe this would be a giant step in the right direction towards free markets and sound money.

Let me know what you all think.

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