I see more and more ledger coins backed by ownership in a commodity. It seems like the storage/security of the asset itself would centralize the value and contradict any true effort at decentralization. What do you think? Would you use a coin with a value dependent on centralization?
Yup crypto can be backed up by the value of long trusted GOLD.
Gold mint ICO is one such example
@incognitio That's a great example, exactly. Unfortunately that feature may compromise any decentralization to the coin. Would you care whether a coin is decentralized or not?
I would challenge you to look at your question but expand that to any currency. Is the USD or Euro backed by anything? The answer is no. It is ultimately the faith in the currency that gives it value. What is interesting is the same is true for commodities.
Did you ever wonder why shows that show royalty 300+ years ago have them eating out off aluminium plates? There was a time when that was a metal more valuable than gold. Interesting how things changed.
How much do you think oil will be worth in 40 years when most, if not all transportation is non-gas powered? I am going to guess it wont have much value.
So ultimately, the question is why is anything worth what it is? Where does the value come from?
@taskmaster4450 Thanks for your thoughts. In fact I mean a more narrow question than the asset backing. Some coins are experimenting with an commodity price relationship. I'm considering that may compromise any decentralization to the coin. It can still work as a cryptocurrency of course. The blockchain is versatile.
I'm not sure about all the technicalities but I saw one recently. (I'm very new to cryptos) https://slvrmine.com/ Like you stated how "decentralized" would this be? The price of the crypto would be based off of silver which wouldn't be bad since it has been manipulated so bad for so long. It seems pretty legit but still need to do a lot of homework.
Here is where is saw it:
https://steemit.com/slvr/@sowellsvt/slvr-ico-a-cryptocurrency-backed-by-real-silver#@linetrash82/re-sowellsvt-re-linetrash82-re-sowellsvt-slvr-ico-a-cryptocurrency-backed-by-real-silver-20170823t025733790z