An issue/disadvantage that the gold standard had was a lack of mechanisms that forced economies to abide by the rules of the game. As a result, they could at any time de-monetize gold and therefore hurt the whole purpose behind it.

Can't this same idea be applied to crypto-currency? If one day individuals decide to not put any value behind XYZ-Therum Crypto (using a generic name), won't that cause a collapse?

Also, isn't there a danger in the lack of regulations behind it?

Why can't I invent MikeIsCool-Coins. I make a website, with a wallet and say that the direct quote for MikeIsCool-Coins is 1BTC. I then give myself how ever much I want MICC, trade it to bozos for BTC, then sell the btc for USD, renderring myself a millionaire?

And this scheme, as a result of a lack of regulation puts no consequences on me?

Thank you, I'm just trying to challenge crypto. I think a currency backed by prime numbers (something that itself holds no value, where FIAT money is based by a promise) is complete nonsense.

  • $\begingroup$ How could a crypto-currency be "de-monetized" (in the same sense as gold) if it never was "monetized" in the first place? It's already the Wild West. $\endgroup$ – Hot Licks Dec 22 '17 at 17:12
  • $\begingroup$ You can put whatever price you want on your coins; if no one is willing to buy them, they are actually worthless. I’d drop that part of your question. $\endgroup$ – Brian Romanchuk Dec 22 '17 at 20:54
  • $\begingroup$ It's important to understand that gold has an intrinsic value, as a metal used in jewelry, decorations, and certain devices. This value was there from very early in the development of trade, and, though different cultures no doubt valued gold differently, they pretty much all valued it to some degree. Crypto-currency has no intrinsic value. $\endgroup$ – Hot Licks Dec 23 '17 at 3:05

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