Instead of STEEM DOLLARS how about STEEM GOLD?

in #steemsilvergold4 years ago

What happens to STEEM DOLLARS if the US Dollar tanks? The USD is a fiat currency after all, which means that it is susceptible to being trashed if the politicians of the day (whoever they might be) decide to devalue it for whatever reason. The USD may currently be the Reserve Currency of the world, but the days of King Dollar are numbered and the writing is on the wall for anyone who bothers to read.

Posters impression of what the US Dollar should actually look like

The US government debt is currently over $20 Trillion and if you believe that’s ever going to get paid off then I have some sub-prime mortgage bonds you might be interested in buying!

This is not sustainable and it's only getting worse

As it stands we are only one crisis away from another round of Quantitative Easing or Helicopter Money….also known as Money Printing.

Government Solution : Print Money -> Distribute -> Profit!?

You only have to look at Venezuela today to realise this kind of thing never ends well and it’s pretty safe to say that if the US Dollar tanks then the STEEM DOLLAR goes down with it. While that isn’t necessarily a bad thing for the STEEM rewards pool, it is probably not a great thing for the platform as a whole. All those users holding STEEM DOLLARS because it is safe and stable against market volatility…..well they won’t be too happy to see their savings on the platform evaporate.


Regular readers of my blog might be confused by the fact my last post was singing the praises of the STEEM DOLLAR as an ideal crypto for mainstream adoption, and I do stand by everything I said there. This commentary is more about the use of STEEM DOLLARS as a stable store of crypto wealth which is one of the important features it can have in a volatile crypto market.

With all the recent talk about introducing Smart Media Tokens to STEEM and the possibility of having different micro-economies happening on the platform I wanted to ask the question :–

How difficult would it be to add a stable store of wealth alongside STEEM DOLLARS which has its value based on a more classical safe haven asset… GOLD?


The answer is : Not very hard at all.

All that would be required is an extra price feed for the witnesses to publish and STEEM GOLD could function exactly the same way that the STEEM DOLLAR functions. STEEM GOLD would be a new debt instrument, denominated perhaps in milli-ounces and each unit of STEEM GOLD could be redeemable for one milli-ounce worth of STEEM from the rewards pool just like STEEM DOLLARS are redeemed. It would just be a new, more reliable asset to peg to that isn't fiat and isn't controlled by any government.

In the future this concept could be taken even further, with other fiat currencies or commodities being pegged to STEEM assets to give users a wide choice of options for both safe haven and stable medium of exchange. For instance I am based in Australia so I’d love to see a STEEM AUSTRALIAN DOLLAR that I could actually use as currency locally. A STEEM EURO would also make things easier for European adoption. Even a STEEM OIL or a STEEM SDR (Special Drawing Right) for when that thing might become the new Reserve Currency of the world if the IMF gets its way….Note to self - I might need to find another frankenstein pic!


The possibilities are endless and the technology implementation is really the easy part. All the building blocks are there for these STEEM Assets to be implemented quickly and easily as the demand arises. All we need is the desire and determination to implement them.

Let’s be proactive and not wait until the next Global Financial Crisis hits


Images and Credits


That post was GOLD mate! I am all for this a gold peg.

I wonder how Goldmoney is doing these days - maybe they need SMT to increase take-up - maybe a joint venture between Steem and Goldmoney could lead to an actual physically backed gold crypto. NICE!

Thanks @sirknight. I am not really familiar with Goldmoney but I like to keep an open mind.

This is crypto-world, anything is possible!

Nice thought, but SteemGold would be no better than the GLD ETF.

Unless you can hold it in your hand, it is a digital illusion of the real thing.

Spoken like a true die-hard stacker. If you don't hold it, you don't own it. I do agree.

But it would be better than a GLD ETF because it won't have the same counter-party risk. There is always the chance the company behind an ETF can go under. The STEEM network is totally decentralised with witnesses all over the place, so where is the counter-party risk?

Great Idea, I would feel more save if the steemdollar would be actually backed by gold. Maybe sometime in the future will bring out there own coin backed by gold on the SMT plattform.

You're probably right, someone will attempt to create a SMT backed by gold but it would have counter-party risk like an ETF does and so it would come down to the trustworthiness of the issuer.

Still, I'd like to see that happen if we can't get STEEM GOLD implemented as I'm suggesting here.

Yeah, I am liking this idea. Steem Gold is a solid concept.

Steem clone Golos has Gold tokens (GBG) instead of Dollars (SBD).
One GBG is worth roughly as much a milligram of gold.

Wow, I didn't know that! That is awesome, it means it's probably not that far fetched at all.

I haven't used Golos because I thought it was just a Russian version and I don't speak Russian. I might have to have a good look at its technical specs to see if there are any other differences.

It would not be hard to add Gold token to Steem blockchain with same properties in addition to Steem Dolars.

That would be awesome..

Brilliant my Friend...

Cheers, I appreciate your kind words.

@buggedout - sounds like a great idea if Steem dollars can be backed by gold, it would actually drive more investment into the Steem platform, it would become a safe haven asset as well as the most useable crypto on the market.

At some point in time there is going to be a major Stockmarket and US Dollar will collapse and there will be few places to hide which will be unaffected by price collapses. It would be great if Steem gold could be implemented to provide this protection.

You hit the nail on the head @cryptoandzen

I am trying to find exactly those "few places to hide which will be unaffected by price collapses" but at the same time have a diversified portfolio. It's a tough assignment but I have a few options and STEEM GOLD would be a nice one to add to the list.

Scary Iceberg chart! Yikes!
Glad i'm packing metal 😜

Great post B!

A picture tells a thousand words.

I don't know how anyone could look at that chart and NOT be concerned.....

For realz! The sheeple look but they don't see

Indeed it's all in plain sight. People don't WANT to see it because then it means they might have to do something about it.

SteemSilver Gold

you are right but steem gold is bit expensive

That's why I suggested milli-ounces. Right now 1 mOz of gold is worth about $1.27 USD so it's not that different from a unit of scale perspective. Everything is relative.

Good job:)

Real gold will be more profitable. Nice post @buggedout


beep my friend hows you 😍

i love your hairs meep ?



some day syteem will be gold equivalent like bitcoin.

I hope you're right. I also hope STEEM will be more stable than Bitcoin! :)

people have been predicting the demise of the dollar pretty much since it came into being, there is no danger of that happening any time soon, but yes, i agree that steem dollar should be underpinned by something else other than the $, gold, maybe, but satoshis would make more sense

I wish I shared your optimism about the USD and I hope you're right but it's always good to have alternatives and diversification even if the USD doesn't tank :)

Well, this level of big-picture thinking is exactly what we all need! Definitely worth my meager upvote and a follow. Cheers!

Thanks. Every vote counts.

PS - Love your name and avatar :)

What happens to STEEM DOLLARS if the US Dollar tanks? The USD is a fiat currency after all, which means that it is susceptible to be trashed if the politicians of the day (whoever they might be) decide to devalue it for whatever reason. The USD may be the Reserve Currency of the world, but the days of King Dollar are numbered and the writing is on the wall for anyone who bothers to read.

Currency US Dollar is a lot of pkaia around the world but we have to make also a reserve currency like you say. Wearing gold for example.

In the Asian continent, especially gold Arab countries have long been in use. Similarly in Southeast Asia such as the State of Indonesia, gold mrupakan precious metals that highly uphold the existence and value.
So maybe steem should consider the use of this gold


Yes, the Asians and Arabs seem to have not forgotten the value of gold like a lot of us have in the West.

what is the value of gold? like, really - intrinsically what is its value?

Ahh, the old Intrinsic Value chestnut. I am not getting into that debate, sorry.

I'm a free market guy so gold is worth whatever someone is prepared to pay for it. Same as cryptos.

It is immutable. It is a conductor. It can be fashioned into objects of beauty. It has long been seen as something precious and recognised as a store of value. Whilst it has a finite supply, its release is also controlled. It is a tangible asset. It isn't locked up in an ephemeral blockchain. I agree with @buggedout's post here. Bitcoin and other altcoins are notoriously volatile. Perhaps injecting gold into the mix might help to stabilise the space. Intrinsically, what is gold's value? Well, it can be "mined", but not at will. There is a finite supply. Its value is, as @buggedout states below, whatever value you bestow upon it. What value does cryptocurrency have? Turn off the power. What is it worth? Most ICOs are ideas and promises, backed up by white papers. Gold is a real, tangible asset. It's not going to disappear.

That is a great idea i would definately want abit of steem Gold! :)

For sure. That's why I am putting the idea out there. I want some for myself. It's like the best of both worlds, a Safe Haven Crypto. Sounds like an oxymoron doesn't it?

I would think it would be pretty easy to do as far as the coding goes (<- has no idea how to code), but think the swap out would be a little more difficult unless you keep both steemdollars and steemgold than it might be a little easier.

Just my two cents from a guy who has no idea how to actually make the change, but just thought I'd share ><. Great post!

Running them side by side would be the way to go. STEEM DOLLARS is an ideal Medium of Exchange while STEEM GOLD would be a better Store of Wealth so you could have the best of both worlds.

Very interesting post. Hopefully steemit gold becomes a thing I would hold a few coins of that!

Thanks. Sounds like there is a lot of people interested in holding a few :)

I can't see the US inflating their money that much. Why would they?

Because they're a bunch of idiots with no respect for the future. They do whatever is necessary to keep the status quo until the responsibility is no longer on their shoulders.

Can't argue with that....

Honestly, have you thought about them actually reducing their own supply to pay back debt? Comparing the US economy to a Venezuelan inflation of ~800% over 5.5 years is a bit much. Who knows, it probably would happen if they didn't have such a global military dominance.

Cutting supply would be very unpopular and would take a lot of political strength to pull off. I just don't see it happening in most Western countries so there is a certain inevitability about it in my eyes.

This would be great!

As it is, right now I am powering-down my Steem Power, exchanging Steem tokens for BitCoin, and buying a 10 oz. Sunshine Mint silver bar.

So, what I will be able to PROVE, on my own, is this: by making an initial $50, 4-month long investment in SteemIt - my efforts will return me one 10 oz. bar of silver - probably going in the range of $180. So, $50 becomes $180. Rinse, recycle, and repeat. I'll be posting a video about it sometime soon.

I think the true value in Steemit is in the Steem price. If the USD tanks, and takes SBD with it, and the value of Steem remains constant, then its price will go up and up and up. It will be cheaper to buy SBD (in other currencies), but not to buy Steem. In that sense I don't see the need for another currency on top of Steem, especially if it has no use outside of the Steem blockchain. Perhaps my understanding doesn't allow me to see it, but I am learning. This article definitely got me thinking about it.

Interesting. The main thought for me is about getting price stability and holding value. We only have to look at the last week to see how volatile the STEEM price can be.

True, but the crypto-sphere in general is very volatile. Nothing is safe from the market forces. Maybe in time things will settle when all the fear mongering subsides, and there is a greater acceptance and trust in digital currency. Introducing another token or currency now won't help with the stability, it will just be another volatile currency which gets treated like all the others.

I also think that the creation of more & more ICO's and coins is not needed. Around here, the whales already pass out "whaleshares" in the form of BitShares, which was, sort-of, the precursor to SteemIt. So, there's BitShares, Steem, SBD's, etc. already floating around here. I mean, if you REALLY want to reward somebody on SteemIt, you can already simply transfer them a Steem token or some SBD's, or give them an upvote, or a resteem, or a comment - or any combination thereof. There's already a TON of ways to reward people around here.

IMHO, people who are offering new ICO's on the SteemIt blockchain are simply trying to generate hype for their own project, which they would be at the center of, which could be very profitable for... them. So, all of this talk about "new ways to reward good content creators" seems to be a big smokescreen for a very simple character defect: GREED. I have to call it how I see it. SteemIt already works great with the transfer of tokens and SBDs - we don't need a $#!t-TON of new coins. What we really need is additional functionality built into the blockchain - things like a place to straight-up buy Steem and SBD with a credit-card, using U.S. Dollars, and not having to go through intermediate exchanges, first. Now, THAT would be a useful tool. Keep your new tokens - give me more functionality with what we've already got here.

I don't know that it is possible to build a Steem:USD feature into the blockchain.....I don't think it works like that. But building it into the frontend(storefront) of steemit, if possible, would be nice!!

Most of the rest of what u said....I agree! G R E E dddddaa D!

That's a fantastic idea actually... even us Americans don't have confidence in the USD

Thanks. I don't have confidence in it, but I still have some. Using it is a bit of a necessary evil for now I guess.

Crypto backed by gold would be a fantastic idea until the supply of gold becomes limited beyond the production of coin but you could easily set the max coin amount to the new supply of gold.

I'm not sure I follow your thinking here. Market forces will ensure prices are appropriate for whatever supply.

in a way that's almost what I said but instead of the market prices dictating the max coin supply dictating

Really, really, good idea mate. I think you might be on to something there.

Thanks @simondocherty I hope the idea gets out there and we can see if it spreads :)

The FrankenBill...the FrankMillion. Regardless, it's all fiat and in the end, just expensive, colorful toilet paper. You make many valid observations. Food for thought!!

Really good idea @buggedout, for Steem to be strong and resistant to most of the market mood it must be backed by gold or silver (but the silver market is a way too much undervalued, because to JPMorgan for so long). To achieve this goal Steem have to own the gold in its real form, not by contract. I really appreciate your idea. Big Thanks.

I don't think that would work. As a decentralised organisation where do you store the gold, and how do you ensure it isn't introducing a new counterparty risk.

STEEM GOLD as I'm suggesting wouldn't be backed by gold. It would be backed by the rewards pool but it's price would track gold.

nice post dude

Thanks. I can tell by your name that I am preaching to the choir here :)

use bitshares for smart coins - better exchange services. Steem Gold would be nice though, good idea!

STEEM has it's own internal decentralised exchange so it's really not that different from BitShares. A lot of the underlying technology is the same.

I'm all about that gold. My arms are gold :)

I agree with you, better to have steem gold than steem dollar. Gold price increase yearly so the steem gold will do the same.

I'm not a big fan of gold. but you have a point. :)

Great post! Something everyone needs to be aware of.

Steem Gold sounds better. lol. Steemit is still at Beta, let's see what happens next.

You know... we heare very often, that the Bitcoin is the digital gold and I ask my self, if Bitcoin is digital gold, what is then digital silver? But hey... the idea with Steem Gold is a fine vision for the future ;)

Litecoin has claimed to be the digital silver next to Bitcoin as the digital gold.

I'm not so convinced ;)

This is what I want to do when I start my SMT. Thanks.

Great post,great thinking \o/

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very good point, it could very well happen

can i get some of that steem gold bby :)

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