/biz/ - Business & Finance

[Anonymous No.5015251]

I'm economically retarded, and I had an idea for a crypto currency that's almost certainly doomed to fail, but could someone please explain to me why it would?

Basically the idea is this: A coin that has a fixed value, that steadily and slowly increases over time. In order to trade the coin, you have to buy or sell it at its fixed value, the price is not determined by the market. The idea behind this is it would be a safe store of value similar to gold, where you can always be confident that it will give returns, presuming you can get your hands on it. In order to buy it, you'll need to get it from people who are cashing in their investment, so I presume it would be difficult to acquire.

I'm confident that this is a terrible idea, I just can't figure out why. pls help

[Anonymous No.5015289]

>>5015251
gold isnt fixed value, you are thinking of bonds, and they are only used as a supplement to diversify big portfolios and to bet on the interest rate

[Anonymous No.5015303]

How do you enforce fixed value? Smart contracts with a bank? Also who the fuck would buy that coin? Value is literally what someone is willing to pay, why would I pay for that over a low yeild vanguard ETF?

[Anonymous No.5015477]

>>5015303
>How do you enforce fixed value?
In order to trade the currency, an exchange equal to the value of the amount you're trading would be required by the algorithm, probably an exchange of another crypto. You wouldn't be able to shift it from wallet to wallet freely without such an exchange. That being said, there's nothing to stop people from giving eachother cash alongside the trade, or trading their wallets rather than the currency itself, but nevertheless the fundamental trade price of the currency would be fixed.

Maybe I'm starting to figure out why it wouldn't work.

[Anonymous No.5015784]

>>5015251
Congratulations you invented a bond about 4000 years later than when they were created.

[Anonymous No.5015817]

>>5015784
cryptobond

what a terrible thing

[Anonymous No.5015822]

>>5015784
So its a functional concept that's done irl?

[Anonymous No.5016082]

there's no returns if it's a fixed value, and assuming you peg it to something like a dollar value you'll lose on inflation

tether tried this by buying and selling for $1 but there's obviously a huge incentive for the one distributing this to pocket the actual money and leave people holding their worthless token

trust isn't worth shit and that's the whole reason crypto is big in the first place

[Anonymous No.5016563]

You can't enforce the value of something