Hi Crypto Network,
What a wonderful few days it has been in the UK!
I hope all of our UK readers have managed to spend some time away from your Blockfolios and enjoy this wonderful, and often rare, British weather!
Yesterday, seeing further gains; Bitcoin Cash, Neo and Verge all performing solidly.
That green feeling has continued over the weekend in the crypto world as the recovery gains momentum.
Market capitalization has climbed a little again pushing it over $235 billion, its highest level for over three weeks.
From an adoption point of view, Gold-Backed Cryptos I feel could be a great area for support, building direct and tangible use-cases!
GOLD & DIGITAL CURRENCY
The idea of a gold digital currency has always had an appeal for those looking for an alternative payment system. Not long after the internet went mainstream E-Gold emerged as the first digital currency backed entirely by gold in 1995. At its peak, millions of people around the world were using this service until it was shut down.
Other attempts to make a digital gold currency were also made, but this was before the age of Bitcoin and blockchain technology.
Now with blockchain technology established as a secure accounting method, and with Bitcoin becoming better known to the general public, a new era of gold-backed cryptocurrency is emerging. There is a proverbial (and literal) gold rush happening now in the crypto world, and even countries are looking to issue their own gold-based cryptocurrency.
GOLD-BASED CRYPTOCURRENCY: HOW TO MAKE THE MOST OF IT?
The blockchain has emerged as a highly safe and secure method of accounting. On the other hand, Bitcoin has gained much popularity among people in general. This has resulted in the growth and the emergence of gold-based cryptocurrencies. More and more investors are now interested in gold based cryptos, which is further encouraging countries around the world to issue their very own gold-backed cryptocurrencies.
SO, WHAT IS THE MAIN CONCEPT BEHIND GOLD BACKED CRYPTOCURRENCY THAT HAS MADE THEM SO APPEALING?
Well, a coin, or a token, is offered to investors, which essentially represents the gold value. For instance, one gram of gold is equivalent to one coin. Now, this one gram of gold is kept by a reliable custodian and can be used for trading coins with other investors that are holding coins.
Needless to mention, gold is regarded as an extremely expensive meal and is also a secure way of investing funds and achieving desired results in the future. Thus, gold-based cryptocurrencies offer some sort of safety to crypto owners both in terms of fiat currency as well as digital currency.
This way, gold backed cryptocurrencies aim at providing some sense of security to owners for their digital money and also has some value in the form of fiat money.
At a minimum, the price of the coin will always equal the current gold rate. If the cryptocurrency becomes popular, then the price of the coin can potentially increase in value, greater than the value of gold. If the cryptocurrency doesn’t take off, then the value remains as the value of a gram of gold. It’s like a built-in stop-loss.
HOW CAN YOU PROFIT FROM GOLD BASED CRYPTOCURRENCIES?
Well, to begin with, you must know that a number of companies today are providing gold-backed digital currencies to investors around the world. Also, currently a number of gold-backed cryptos are available in the market including OneGram, Lions gold, Xaurum, and Goldmint among others.
When it comes to profiting from gold backed cryptocurrencies, crypto enthusiasts must conduct in-depth research before investing their funds. It is also important to know that Ethereum and Bitcoin are the popular cryptocurrencies, which can be used for buying gold-based cryptocurrencies. Hence, you must have enough Ethereum and Bitcoin to purchase gold-backed cryptocurrencies.
Different cryptocurrencies and platforms require buyers to fulfill varied requirements in order to buy gold backed cryptocurrencies.
The development and success, or failures of the many upcoming ventures of gold-based cryptocurrencies are much-awaited in order to see the fate of this new form of cryptocurrency.
GOLD BACKED CRYPTOCURRENCIES TO CONSIDER
Kinesis – Is currently in its ICO Phase, looking to revolutionize the gold backed cryptocurrency sector, also offering a Kinesis Currency Exchanges (KCX). This is an exceptionally fascinating and down to earth rendition of blockchain innovation, which plans to deal with the accompanying fields:
Digital Money Markets.
Gold and Silver Markets.
Fiat Currency Markets.
Venture Asset Markets.
The Kinesis system is an evolutionary step beyond any current monetary system available in the world today. It enhances money as both a store of value and a medium of exchange.
Use is incentivized by attaching a unique multifaceted yield system. This promotes the use of Kinesis as a currency while distributing back the wealth generated according to proportionate holdings and velocity.
DigixDAO – DigixDAO is ranked number 70 in market capitalisation with over $103,135,228 and currently $51.57 per coin. It has seen Valuations of almost $500 a coin, so this could be a very interesting opportunity right now.
DGD stores physical gold in a Shanghai vault. 1 gram of gold equals 1 DGX token. Once the DGX tokens are available for trade DGD will collect a 0.13% transaction fee for exchanges made on the network. DGX tokens are essentially contracts for physical gold, and holders will be able to redeem them and take delivery at any time. DGD tokens represent a stake in the exchange and will yield a quarterly dividend paid in Ether based on profits generated from transaction fees.
Need cryptocurrency advice or stuck on matters related to cryptocurrency investment and trading? In either case, feel free to connect with the Platinum Crypto Academy. Our experts will provide you with an insight into the world of profitable crypto trading.
If you’ve booked your session above, we look forward to speaking to you soon! Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Richard Baker Live from the Platinum Crypto Trading Floor.
Earnings Disclaimer: The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.