When i heard about bitcoins and after studying it little, It seemed a complete solution to the people for global trade etc. but somewhere i was not comfortable using and paying for a currency which is made by some computers? Ok i agree that dollars are printed in papers as well but the difference is that the dollars are backed and promised by real governments and have some back ups and credibility. This is what is most important for a person like me i.e. to have some safety with whatever I own. and all of a sudden i see a new digital currency which is backed by bullion (gold and silver) called NoFiaCoin-XNF and that for me carry a lot of weight because it is backed by some tangible precious metals which can be redeemed at anytime anywhere. XNF is traded in ripple network so no issues with the security of the transaction. I can draw parallel between bitcoin and NoFiaCoin-XNF as they are very much alike and complement each other but i see little more security with XNF.
What's your affiliation with NoFiaCoin-XNF? It doesn't show up on The Google. Or roll off the tongue all too easy. Same first post here- http://forums.pureoverclock.com/dig...4497-bullion-backed-digital-currecny-xnf.html
So you buy these coins from the issuers but the bullion backing is only 1/3 of the value of the coins issued And you have to trust that if you redeem your coins that they will actually mail you the bullion And if everybody redeems at the same time there will obviously not be enough bullion to go round Scam
Just a general comment: So who has the key to "XNFort Knox". The problem with commodities is that you are trusting others to secure, audit honestly, monitor for counterfeits, maintain some sort of transparency and abide by local legislation etc. Good luck.
Look, 100% bullion backing is not practice for any business due to various reasons such as flexibility to adjust to market. Suppose they are backed by 100% bullion and gold prices fall down dramatically, think the company would not be able to do anything but to wait and watch. 100% bullion backing not possible. Again, Please try to understand the basic difference between a centralized digital currency like XRP or XNF and a decentralized currency BTC or LTC. You or me cannot do anything about it because the business model in a centralized system works like that. Some central authority have to be there. If people don't like anyone coming in between them and the currency, they better don't buy the idea. That is another wrong assumption that everybody redeem bullion at the same time. Have you ever seen all people who pay insurance premium claim at a time?
Exactly, Those are the problems or rather challenges to the company. It has to be seen the performance of XNF. The idea looks great but implementation is something challenging.
Bush fires, floods and cyclones. Actual closures of insurance companies directly linked to mass claims (equivalent to a bank run) are hard to find on Google as I couldn't filter search results enough to remove all the commercial trite.
No the idea looks like a scam. What is the point ? If I had $1200, why would I give it to this company so they can buy $400 worth of gold, put it in their safe, and pocket the other $800, giving me some electronic coins in return ??? Why wouldn't I just go and buy $1200 worth of gold and put it in my safe ? If I want a crypto currency to speculate with there are many to choose from, I have the potential to mine them and they are not controlled by a single entity.
Crypto/digital currency is already backed by proof of work, just as work as been done to pull gold out of the ground. Gold's proof of work is its physical manifestation. Hard work was done to pull it out of the ground. It also can't be undone or reproduced, unless you can create and contain the effects of a star going supernova in a lab. Digital currency's proof of work is the mathematics underpinning it. Unless you have access to some secret information that the entire academic world knows nothing about, then the mathematics are sound. Mass and energy are much of the same anyway. Gold is energy in a condensed form. Energy is required to release digital currency.
-1 ^ As the XNF website says, value is subjective. The price value of an object is not dictated by the amount of "work" that has been inputted into its production.
I just assumed that when you referred to you were suggesting that cryptos and gold have value because of the effort that went in to producing them. Sorry if I misread you. If I was wrong can you please rephrase your post so that I get what you are trying to say?
A unit of "XNF/GoldCoin" (the currency) is not gold itself. It represents ownership of gold held somewhere in a vault. People are referring this as being "backed" by gold. The price of gold however, is arbitrary, yet it has been discovered for practical purposes. In the case of Bitcoin (the network), the bitcoins (the currency units) are still going through a process of price discovery. The value of bitcoins is subjective. The price has little to do with production or existing supply. A bitcoin is not proof of work (POW) unto itself, but rather represents past POW that released the coins. You can't hold POW in your hand because the electricity expended has long been converted to heat. However, the POW performed (Hashcash) allows you to verify that work was in fact performed (impossible to fake, like gold). I probably was not clear earlier. I am comparing bitcoins to gold. If gold has no "backing", then indeed bitcoins have none either. I am using the term "backing" in the sense that gold is "backed" by human work performed and universal laws that created it. I agree this has nothing to do with price. What "backs" gold is another whole topic which has probably been discussed to death on this forum. I was only making the point that some human work was performed to put the physical stuff in your hands. Crypto coins released in the POW process are better than physical stuff held by a third-party as the store of value is in the crypto coin itself.
Agreed that once in a blue moon natural disasters happen which led insurance companies closure, that is why now insurance companies does not include natural disasters in their insurance cover. However, That happens once in a blue moon and success rate of insurance companies are over 99%. Moreover, it does not make sense to relate and cite something which is least possibility (Everyone with XNF opting to redeem it to gold). Perhaps a perfect example of looking at half empty glass of water rather than looking at half filled glass of water
Doesn't matter if you view the glass half full or half empty if half the glass is filled with shit - it's still a pile of shit.
Look, objective to buy cryptos is not to replace them with anything but beyond that. Do you think people bought bitcoins to replace dollars? There are umpteen number of people who still buy bitcoin, litecoin and other coins. While doing that they are not replacing their money but they are investing in crypto because of various reasons such as easy and instant transfer, good return, no charges etc. In case of XNF, its not compulsary to redeem it for bullion but its optional. XNF still can be exchanged to XRP, USD, BTC, LTC etc. and if people want to redeem it for bullion, they can do it as well.
