Being a precious metals investor and a relative newcomer to cryptocurrencies, I have wondered about the interrelationship between our shiny treasures and the seemingly limitless possibilities of the blockchain currencies.
My train of thought is something like this: Precious metals (PMs) have long been recognized as honest money and a store of wealth without third-party risk. Cryptocurrencies provide a much-needed alternative to the current debt-based currencies, along with the benefits of anonymity. Combined, we could be seeing an entirely free and unfettered marketplace backed by the stability of PMs.
The question is: Considering the limited available supply of PMs, and the limited quantities of cryptocurrencies (to wit, BTC's 21 million coin maximum), what would be the possibility of combining the benefits of both? To me, linking them in some manner like a gold/bitcoin ratio would provide necessary economic stability, and the desired freedom and anonymity of trade, providing us with a truly free marketplace for goods and services.
I am greatly intrigued by the possibilities and ramifications of such conjecture, would be grateful for your comments, thoughts, and ideas pertaining to this idea.
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