So we have an unusual crypto; NoFiatCoin-XNF in the market which is backed by bullion. It looks like a cocktail of a centralized and a decentralized system.
There's third party risk - where is the bullion stored and who pays it out if need be? Sounds like Goldmoney 3.0.
LOL this site now with all it's threads about cryptos does come up on alot of searches. guess it's going to happen.. And dude show me the bullion backing it, Phiz not paper, Then we can talk....
no it's the third thread. in each thread the discussion dies so they register again and start a new thread coin is a scam - pure and simple
Didn't you start a new thread when you were new here? Cannot a person interested in cryptos make a thread? Lets not bitch about something rather have a discussion if interested. This coin is unusual but does not look like a scam BECAUSE scams doesn't looks complicated like this coin and that's the biggest argument. I know how people screamed SCAM the moment they see Dogecoin and most interesting part of such A$$ holes are they are now mining Dogecoin :lol: Forget about the future of this weird coin but try not to act like those A$$ holes
Because you'd be taking a digital 2 party, zero trust payment system, and introducing a 3rd party (the storage facility for the bullion), rendering the design of a 2 party, zero trust payments system useless, by 1) introducing a 3rd party, & 2) introducing the need to trust this party to actually have the bullion, when you want to exchange your digital coins for it.
I don't see 3 parties, just 2. It would be like a non-fiat, but centralized digital currency. Like a Bitcoin with gold backing. It could function totally the way you see these wallets work. Codes would be addresses and transactions would be lightning-fast and very very cheap. The simplest way to imagine it would be a bullion reserve somewhere and a digital currency connected to it. There would only be as much currency as there is bullion. Basically, to the user it would look and behave like Bitcoin. Just that it would be more stable and new coins would only be created when there would be enough bullion. Call it "goldcoin" or "silvercoin". Like an ETF linked to REAL gold in some vault. This is just a theory and I don't think it would be a "great hit", because you know what vaults do... All I'm saying it's possible and relatively easy. No "mining" would be necessary. If this could happen, I suppose gold (or other PM used) would have a more stable price as well. But this would be a bit foolish, I guess. Any economy that grows produces inflation and what I'm describing here would lead to stagnation. Finite amount of money, very little possibility for creating new money (unless more physical gold is extracted and added to the reserves)... The Fed doesn't have Germany's gold, the dollar isn't backed by gold anymore, why would anyone trust a cryptocurrency would have REAL gold (or other tangible asset) stored somewhere. ...probably you'd want to buy the real gold instead. And that would be a wiser decision!
Who holds the bullion that backs the currency? Where's the vault? An algorithm can't do that, someone has to do it - that's the 3rd party. Unless you mean it's backed gold in a vault only theoretically and that limits the total coinage as opposed to an algorithm. If that's the case, then it raises more problems than a computer algorithm does, since the humans running the vault can "control" the money supply.
@everyone, This is what i must mentioned. C: Why should someone choose NoFiatCoin over Bitcoin and other cryptocurrency? R: "The way that we have developed our system is it will be shielded from external forces. Every now and then you hear about a government that scares cryptocurrency enthusiasts into trying to figure out what's going to happen now. We're developing an ecosystem, even if governments decide financial institutions can no longer provide services to these crypto guys, well guess what. We still survive because we basically redeem our own balances. You can come back to us and leave with hard assets. It's just something different. And it's shielded and really protected from any kind of pressure from the outside world. And that's the advantage. We're going to be more secure." C: You've taken a lot of heat from people, especially Bitcoin enthusiasts. Do you have a response? R: "They call us a scam and the arguments I can't wrap my head around it. Basically, they're saying anyone can create a digital currency, and that it doesn't have to be backed by hard assets because the value comes from flexibility and speed and all that stuff. They're saying we're a scam because we actually have accountability. We put a face to our project and back our currency with hard assets. It's just crazy. C: What are you hoping to accomplish with NoFiatCoin? R: "We really want to have the best of all worlds. We want the benefits to come along with being a digital currency so people give it value because you can move it faster and transact across all borders with minimal fees (or none at all). And, we want the benefits of gold and silver, tangible assets that people trust and believe in. Even with fiat money, it's still important and it's not going to disappear. You still need fiat and you still need gold." http://techli.com/2014/02/theres-a-new-cryptocurrency-in-town-meet-nofiatcoin/
Okay smarty lets talk Although I have already submit details which would be enough but I am always up for challenge so lets talk Who let the dogs out? I mean who said every X number of coins must be backed by gold if it has to be called bullion backed??? Common, I am not an economist but its not that difficult to understand that it won't be possible for any company to back their coin 100%. Why? Because they would be sitting duck not be able to do anything in any unwanted market situation. For sake of flexibility! Got it? Oh man! Bitcoin exchange for bullion is a different thing altogether than investing in a digital currency. Please read the previous post of mine for get answer for this question and do let me know if XNF still looks like a SCAM
So when I want to cash out my crypto for ounces of gold, the leprechauns will deliver the physical to me? I can see several problems with that scenario.
The founders of NoFiatCoins said so!! Their "coins" will always be backed at least 1/3 in gold or silver Sause: http://www.nofiatcoin.com/faq.html @ "XNF and Bullion" If the purpose of a digital currency is to provide an alternate method of transferring value or wealth, and if one of the main "features" of one system is that one can buy silver of gold with it, then it is a valid comparison. I note though that the minimum amount one can buy/redeem through NoFiatCoin is USD3000
Again that is faulty thinking and wrong assumptions. How can you be sure if I am generally interested or a digital currency enthusiast or I am innocent? Using such words for your own favor looks good but only when you are into a blame game. good that you accept that the coin does not looks like a scam
Its not like only way to cash the coin is to redeem it for gold but it can be exchanged for BTC, XRP, USD along with gold or silver redemption. Basically trusting the company to redeem the coin looks to be your main concern which is justified since the company will play a role in redemption but at the same time you must not the draw parallel to other digital currencies since they LACK other forms of trust (can you trust bitcoin or for that matter any other decentralized coin that you will not lose your money to several reasons?)
