Gold-backed stablecoins have risen in popularity amid economic turmoil related to COVID-19.
As markets, both in the traditional fiat and cryptocurrency world experience volatility, stablecoins have been seen as a ‘safe haven’ for investors eager to hedge against turmoil.
The concept of using gold as a medium of exchange and store of value has been adopted by countless civilizations.
In the modern era, efforts to create gold-backed cryptocurrencies have grown more numerous to grab a market share of the stablecoin market, an industry traditionally dominated by fiat-based coins like USD Coin.
The Basics Of GoldCoin
One rapidly-growing cryptocurrency backed by gold is GoldCoin.com. The ERC-20 coin represents a fractionalized gold-backed asset that is available for purchase with other virtual currencies or with fiat.
But what makes GoldCoin a better investment than the plethora of other gold-backed cryptocurrencies on the market? In an industry filled with false promises and exaggeration, there are a number of features GoldCoin has that make it a worthy investment.
Prudent prospective investors should carefully research any company claiming to offer gold-backed cryptocurrency. If an entity does not actually have adequate physical bullion reserves to underpin the digital currency, the purported gold-backed crypto could become entirely worthless.
Gold is also a metal that can be faked. A story that broke in summer 2020 detailed efforts by a dozen Chinese financial institutions who loaned billions over the years to Wuhan Kingold Jewelry Inc., using pure gold as collateral.
News that some of the bars were actually gilded copper alloy sent shockwaves and led to court orders.
Every GoldCoin is fully backed by physical gold that is audited by a reputable third party. Holders of the cryptocurrency also have access to a stream of the vault that can be viewed at any time.
The ability to immediately ‘self-audit’ gold reserves by viewing the video stream stands in contrast to some other projects that merely rely on recurring audits to verify gold reserves. This means holders might have to wait for weeks, or even months, to receive assurance that their virtual currency is actually backed by physical gold.
Easy To Redeem For Physical Bullion
GoldCoin is also able to be redeemed at any time for physical bullion. Some other gold-backed coins place restrictions on holders interested in redeeming their virtual coins. GoldCoin investors have peace of mind. They will always be able to redeem at a ratio of 1000 GoldCoin per ounce of 99.9% pure physical gold.
Some gold-backed cryptocurrencies force prospective investors to purchase in certain denominations. If the spot price of physical gold is high, this can make it difficult for people with less capital to invest.
GoldCoin promotes the democratization of gold ownership by fractionalizing ownership to 1/1000th of an ounce. This decision ensures investors with any budget are able to purchase the coin easily.
The cryptocurrency world can be wrought with security lapses and gaps that place coin holders at great risk. Security is of utmost importance at GoldCoin. Since the cryptocurrency is a private asset, there is no identification requirement for users interested in buying some of the digital currency.
All prospective investors need to do is provide an Ethereum wallet address to receive cryptocurrency.
Prioritizes Security And Stability
Users are also asked to carry out two-factor auto fixation upon login to reduce the risk of hacks and malicious activity.
Research from Lloyds of London estimates the cost of hacking attacks totals at least $400 billion, for businesses across the globe. Two-factor authentication goes a long way to keep data and information more secure.
All across 2020, investors have been flocking to liquid assets with a limited supply. Some argue there is room for both physical bullion and cryptocurrency to serve as a useful investment.
GoldCoin offers prospective investors an attractive and safe way to dip their toes in the world of digital currency while investing in physical bullion.
From enhanced security features, the ability to purchase fractionalized gold, and the ability to review physical bullion audits in real-time, GoldCoin is a worthy investment for those looking to take advantage of heightened interest in gold-backed cryptocurrency.