Cryptocurrencies could be amazing because of its cashless transaction principles, but it has its own share of flaws as well. Giving the highlight on its instability, it is hard to predict its value which causes huge effects to crypto investors. As a solution, gold backed digital currency have been developed to induce tremendous improvements to cryptocurrencies.
Huge Changes that Gold Backed Cryptos have Brought to the Market
Gold Backed Cryptocurrency (GBC) is a kind of crypto cash that bases its value directly to the value of physical gold. For instance, Kinesis digital currency backed by gold has the value of 1 KAU equal to 1gm of gold. Other digital currencies also have their physical counterparts such as silver and other precious metals as well, just like 1KAG in Kinesis which is equal to 10gm of silver. This paved the way for significant positive changes to come for investors, and for the crypto and stock market in general.
Digital Currency Backed by Gold has Better Stability in Terms of Value
Investors and experts on cryptos do not have to play guessing games or depend on unreliable predictions regarding the value of GBC. This is simply because GBC bases its value directly on the real price of gold in the market, thus you can expect no big sudden plunge or peaks to happen randomly. Such stability has caused more investors to trust GBC as well, which inevitably bring in more support to it.
Investors can have Real Physical Gold as well
Upon investing on Gold backed digital currency, investors can easily have or buy real physical gold as well. After all, if it is backed by real gold, then there should be real gold physically stored in a safe place. Investors can inform the platform of the GBC if they want to buy or claim the gold for themselves.
Physical Gold and Silver Are Back in the Market as Currencies
Upon the advancement of digital currency backed by gold and silver, physical gold and silver have returned to the market as its old role of being currencies. You can even view such concept as a merge of ancient currencies and modern platforms into one. You can use it to buy commodities, or convert it into any currencies worldwide depending on the value of such precious metals.
Having mentioned all of those big leaps and positive changes, one can conclude that cryptos could finally have the stability it needs to achieve. Considering that gold and silver are precious metals that you can have anywhere in the globe, you can easily foresee a common currency that can be used by anyone in any place. Gold backed digital currency could be perfect for any transactions, both for online and offline use as well.
However, you still need to be responsible in handling GBC and never invest in something you cannot afford to lose. Moreover, if you want gold backed buy digital currency only from reliable platforms, to make sure of having authentic crypto on a platform you can trust.