It's not stable coin with near instant arb. This one with very low market cap and liquidity can be manipulated quite easily. It's a token that whose contract might have vulnerabilities or accidently frozen. It's only available one creditable exchange, IR. Why buy a paper gold in a crypto market anyway?
To off-ramp crypto wealth into something stable at the end of a mania cycle without explicitly bringing it back into fiat. I'm not saying it's absent risk or there aren't better options out there but it is definitely on the radar for me - especially as an Australian. IMHO gold backed crypto is the future of money and we will get there in a round about way (even if it takes decades), but for now we have to do our best with a lot of sub-optimal options.
What’s the point when there is already a wealth of possible alternatives that don’t t involve a currency based on trust?
LOL. I am just watching that video now and he nails the answer at 10:50 - 11:29 It is basically exactly what I just said above.
Please enlighten me. Pretend it's December 2017 and your BTC is worth $20K USD, you have a million dollars in capital gain and you think the whole crypto market is just about to tank. What are you going to do?
I don’t get why you think a gold-backed crypto is a serious contender as a future currency. It only solves one problem ie inflation, it doesn’t remove the need to trust someone to administer it.
That's the entire point of Tether and other stable coins. Out of interest why do you trust InfiniGold more? Also you have to trust the exchanges that host PMGT too.
Buy Tether... I wonder how it will work with PMGT? are they setup to create as many new tokens as the market wants? If not then the market is not big enough to offload large amounts of BTC. And if so how does InfiniGold convert BTC into cash into PM GoldPass fast enough that they are not at a loss in a declining BTC, gold increasing market?
Here we go.... I'm not writing an essay on this. It's not so much about inflation as it is about stability. Nobody wants to hold or use a currency for commerce that is volatile. BTC might become stable one day but the transaction fees when it does will be killer. We are going to end up with millions of blockchains and I see not ONE gold backed crypto, but many of them with lots of different issuers and atomic-swaps available to jump across underlying blockchains. This is not dissimilar to how the world once worked...with promissory notes issued from many different issuing banks. They can be regulated and backed by established financial institutions to provide some trust, stability and confidence.
I honestly can't believe you are advising people to buy Tether. It is very murky, unaudited and opaque. To be honest I am surprised it's lasted this long. At least with PMGT you can reconcile the holdings on the Perth Mint website with the circulating supply on the blockchain. Did you watch the video you posted? I'd prefer USDC, DAI or BUSD to Tether.
No you do not. It's an ERC-20 token that can sit in cold storage inside your ETH wallet. You don't have to sit on an exchange. You'd even be able to trade it on a decentralised exchange.
The amount listed on a blockchain and the total liability of a cryptos on all the exchanges are not the same. Crypto X might show 1000 on the blockchain, but the circulating liability of crypto X across all the exchanges might be 5000. Everyone should understand this by now. Since most people use exchanges, then no you can't completely verify the circulated supply of InfiniGold.
But as even you have even stated, at some point you will sell out of say BTC and convert to PMGT. At that critical point you very much have to trust the exchange. Until the day when everything is conducted on the blockchain, the crypto markets are no better then the current financial markets. Thus trust is everything.
Watch the video you posted. They are partnering with an established market maker and there will be arbitrage opportunity. You know how bullion dealers work? They hedge against the underlying using futures etc, while holding cash or inventory that might be volatile.
I know how bullion dealers operate, but i don't know how InfiniGold operate. At best you can only assume they (and the exchanges) are doing the correct thing. And again to be clear, the PM have nothing to do with InfiniGold. InfiniGold just have an account with the PM in order to buy GoldPass tokens. Their partnership is VERY loose at best. I have no issue trusting PM GoldPass, but i don't trust exchanges or InfiniGold. Personally i would trust Tether as much as i do InfiniGold.
I'm not talking about exchanges. Centralised exchanges can do all sort of wacky stuff. What I am talking about is reconciling the Circulating Supply of the ERC-20 token here :- https://coinmarketcap.com/currencies/perth-mint-gold-token With the Perth Mint website showing the InfiniGold GoldPass holdings here :- https://pmgt.perthmint.com Please tell me how I might do that with Tether and see the USD they are holding in bank accounts to back their token then you might have an argument. DISCLAIMER (because it feels like I need one) - I have NOT done full diligence on InfiniGold yet and there IS a counterparty risk here. All I am saying is that in my opinion the risk is likely a hell of a lot lower than Tether.
I was being a bit argumentative when i said Tether and InfiniGold are the same. From how things seems atm InfiniGold does look more trust worthy then Tether, though i still trust neither. Though without Tether the crypto market would be MUCH lower in value then it is now, so i guess we can't completely hate it
What’s wrong with cashing your BTC (including your million $ capital gain) out into fiat in December 2017? Edit to add: and infinigold and PMGP have more in common with the promissory notes of the 19thC banking system than most cryptos.
