Precious metal based crypto currency, why not?
Crypto currencies based by precious metals would be a lot more stable and not rise and fall in price as much meaning they would be more useful. Outside the financial system but still backed by real money, a perfect world.
It does not have be backed to a 1 to 1 ratio and the market can decide how diluted they would like the precious metals backing before getting nervous about value. I mean 1 oz of gold is only backed by 100 Australian dollars, that doesn't stop gold investors.
Right now the market has decided that silver is 75 x less valuable than gold and no one seems to be complaining, apart from silver stackers that bought in 2011. So what if 1 PMcoin is only backed by 0.01 oz of silver, it has a physical backing and would be a good nail in the coffin for central banks.
Silver would be a good choice as a backing because it's less scarce than gold.
It be awesome if the PMs were also available for delivery, however this would need some type of massive bullion dealer as backing or delivery costs would have to be charged.
What are your thoughts? Please discuss!
It would have been a very good idea!
I Would Hold Any Precious Metal Backed Crypto If It Was Available. I Thought Digix Tokens Held Promise...But They Aren't Available Yet.
Found this 9 months after it got posted, so this might be a 'captain hindsight'-level reply, but have you heard of Metalicoin?
Not just precious metals, but ALL metals that have industrial usage can be traded AND will be available for delivery (or at least, that is what they envision).
ICO should be sometime soon, but in the meantime you could check out their white paper to see if this is what you were looking for.