I wouldn't call it blind faith similar to how it isn't blind faith to get usd stable coins
I think paxos and xaut have audits etc. from what I know/ I have heard.
Although having more audits is always a neat idea but I was just proposing that there are ways to invest in things like gold and have things like liquid gold perhaps via stablecoin or some other means too basically allowing you to instantly sell gold and gold is a pretty good hedge against stablecoin imo.
I actually once wrote about this idea of narrow banking discovering it accidentally where I wanted a bank which could invest in treasury bonds for inflation protected money or gold.
> I think paxos and xaut have audits etc. from what I know/ I have heard.
Ah, yes, the almighty auditors.
Auditing proves you passed the audit. Nothing more, nothing less. The audit can be at any level that suits the person paying for the audit. In this case it's the company who has the vested interest in passing the audit.
That's why you should bank with private counterparties, not the government.
If you buy eg a gold ETF, you can ask all these questions without any guns coming out. You can also go and exchange them for physical gold whenever you feel like it. Without any guns coming out.
If they break their promises, you can sue them. Without any guns coming out.
I wouldn't call it blind faith similar to how it isn't blind faith to get usd stable coins
I think paxos and xaut have audits etc. from what I know/ I have heard.
Although having more audits is always a neat idea but I was just proposing that there are ways to invest in things like gold and have things like liquid gold perhaps via stablecoin or some other means too basically allowing you to instantly sell gold and gold is a pretty good hedge against stablecoin imo.
I actually once wrote about this idea of narrow banking discovering it accidentally where I wanted a bank which could invest in treasury bonds for inflation protected money or gold.
https://gist.github.com/SerJaimeLannister/c3db4eb84da96decfc...
> I think paxos and xaut have audits etc. from what I know/ I have heard.
Ah, yes, the almighty auditors.
Auditing proves you passed the audit. Nothing more, nothing less. The audit can be at any level that suits the person paying for the audit. In this case it's the company who has the vested interest in passing the audit.
Hey, so does gold-backed currency!
How do you know how much gold the government is holding? Ask them!
How do you know the government isn't lying? Ask this question loudly enough and meet people with guns!
That's why you should bank with private counterparties, not the government.
If you buy eg a gold ETF, you can ask all these questions without any guns coming out. You can also go and exchange them for physical gold whenever you feel like it. Without any guns coming out.
If they break their promises, you can sue them. Without any guns coming out.
> If they break their promises, you can sue them. Without any guns coming out.
Providing you and they are in a country who is prepared to use 'guns coming out' to enforce the outcome of said suing.
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Welcome to "monopoly over violence" - it's only been around 12,000 years or so.