IS IT POSSIBLE TO BACK UP A CRYPTOCURRENCY WITH ANOTHER CRYPTOCURRENCY???
This question has been on my mind for a while now and I just want to get some other opinions on this topic. Do you you know how people out there say that "bitcoin isn't backed by anything", what if Bitcoins becomes the crypto-gold that backs up another currency?????
Does this make sense??? Will it ever make any sense?
Bitcoin itself is backed by Math and Cryptography so there's no need for it to backup other cryptos because they are mostly forks with added functionality
Hmm. Interesting thought. Although i dont have the answer for that lol. Anyway. Good question. I hope i will find the answer to that too.
Long live Steemit. Dont forget to upvote 😉😜
Thankx
Is it necessary? how did gold and silver gained trust from people at the begining?
Good point!
It has been thought about in the past with the use of smart contracts on chain that basically have the private key for a coin and if you send a specific coin to it it can send the key to the new coin.
Just do a couple of searches for cross-chain transactions and you should get a bit of reading material.
At the end of the day, value comes from utility, fungibility and scarcity. So as long as those things are law in a crypto, it have value. Sometimes things happen like in ETH where the fungibility is destroyed.
I look into that and do some digging, thanks!
I want bitcoin to eventually be used for everyday transactions but it currently looks like what you're describing. Its the safe haven after people make their money with the smaller coins.
See I dont understand that at all, Bitcoin is no 'safer' than any other legitimate crypto, I have never used Bitcoin or Etherium or any of the top ten, except to move money in and out of my holdings because they are widly accepted on exchanges.
Pssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssst....may or may not be working on an asset-backed cryptocurrency that will back other cryptocurrencies seeded in our network xD
Imagine transacting with a currency ACTUALLY backed by an asset...yeah, others are coming out with them, but not like this one. Feel free to follow - gave you one!
Looking forward to building this community together and would like to include some links to your music if I you'd like. I like to promote fellow Steemian art within my posts which are not focused on art whatsoever. I find this as a great way to help my Steemian community gain exposure for their work while further building the community. All re-steems/comments/upvotes are much appreciated! Check it: Example of post used to promote Steemian! Toward the bottom:)
All value is created by humans, and value comes from belief, its the same for Bitcoin as it is for the US dollar, and the same for gold and silver.
So 'backing' something is just using the stronger belief in one thing to lend belief to another thing. In a sense this is what 'coloured coins' does, you write an IOU into a Satoshi and store it on the Bitcoin ledger, you can write anything on that IOU, like I owe you $1,000 or I owe you as specific house, Bitcoin is just a ledger. However in this use case, the actual price of a Satoshi is irrelevant, its just a way to use the Bitcoin ledger.
I dont have deep knowledge of coloured coins, but its worth a look.