Mortgage for Crypto currency?

[Sristy]

Hi Gurus,

I have a basic or stupid question on Crypto currency. For any country to print currencies, they need to show the account of equal value of Gold. For any company's share to trade in market, the value of the share depends upon the profit / loss of the company. Most of the loans given by banks are based out of mortgage or personal loan only based on credit history.

Similarly, on what basis Crypto Currencies are produced and on what basis they are exchanged or traded ? Or anybody can create new Crypto Currency without any base ?

Thanks,
Sristys.

 

[BBulldog]

For any country to print currencies, they need to show the account of equal value of Gold.

This is incorrect, I don't know where you got this information. I mean most of the things you said were totally incorrect, but this doesn't even make sense.

 

[Sristy]

This is incorrect, I don't know where you got this information. I mean most of the things you said were totally incorrect, but this doesn't even make sense.

Was reading an article on 'How are gold and currency related'. There is difference between developed nations and non-developed based on gold is what I concluded based on many articles. Might not be true as well.. But what is the base for Crypto Currencies ? Assuming not anyone can create cryptos as they want and trade in market. Correct ?

 

[Vishal Sanjay]

For any country to print currencies, they need to show the account of equal value of Gold.

This hasn't been true for decades, today most central banks print 2% to 3% of total GDP based on numerous other factors such as exports, imports, fiscal deficit, inflation, etc.

Crypto, on the other hand, derives its intrinsic value from its utility. If it's stable as a store of value and a flexible means of exchange, it will gain value, and based on the demand and supply, the prices would vary!

 

[SocialManager]

There is no outside base for crypto currency. That's kind of the point of it.

The value of crypto currency is that it is limited and can be used for trades in a different way than exchanging typical currency.

 

[BBulldog]

Was reading an article on 'How are gold and currency related'. There is difference between developed nations and non-developed based on gold is what I concluded based on many articles. Might not be true as well.. But what is the base for Crypto Currencies ? Assuming not anyone can create cryptos as they want and trade in market. Correct ?

Countries decide their gold reserves on an individual basis and it's mostly used to provide stability in times of crisis and/or to defend from currency fluctuation. The articles you read were either garbage or you couldn't understand them. Anyone can create cryptocurrencies, their price is based on supply and demand, but is heavily manipulated.

 

[Sristy]

Thanks for the information. Now, how does market demand specific Crypto currency? Based on its security level? Based on advertising? Based on referral?