While skepticism has remained over the growth of cryptocurrencies based on blockchain technology, one cryptocurrency, namely GoldMint, aims to back its coin with actual gold. By doing so, GoldMint aims to bring confidence to investors that their money will be backed by a tangible asset with intrinsic value.
Gold is the perfect asset to back any token or share, or even sovereign currency, with, given that it has unique properties making it the quintessential form of money: it is rare, durable, divisible, malleable, and any unit of its weight can be exchanged for any other unit of the same weight. Gold also has utility as an industrial metal due to its conductivity, and has aesthetic appeal due to its bright yellow color when pure. These unique properties have made gold a universally recognized form of money that will bring legitimacy to any cryptocurrency seeking to assure investors of its value.
By using the blockchain — an accessible ledger that allows users to view data such as assets, ownership, and contractual information — GoldMint aims to bring greater transparency and ease of use to investors and traders of gold. The blockchain used by GoldMint is private and based on Graphene software, given that it is open-source and secure. Using the blockchain, users of the GoldMint platform can conveniently buy or sell gold futures at a predetermined price and time. Given the stability of the gold price throughout history, cryptocurrency investors and traders, as well as companies, can use the GoldMint platform to hedge against the volatility and risks in cryptocurrency and other markets. The platform aims to allow users to buy and sell gold swiftly and easily, including on mobile devices, thus bringing extra liquidity to the gold market.
Those who simply buy and hold gold through GoldMint will be able to weather any spikes in inflation from fiat currencies. While fiat currencies can be printed almost infinitely, the supply of gold due to mining increases one to two percent annually. Thus, gold is considered the supreme hedge against inflation, which has ravaged many nations throughout history, and even today afflicts much of the developed and especially the developing world. Moreover, the GoldMint cryptocurrency uses a “proof-of-stake” (PoS) protocol, which allows token holders to mine the cryptocurrency simply by storing it and periodically receive token amounts proportional to how much they own.
The unit of currency used by GoldMint is GOLD, with the symbol MNT, which is backed by physical gold of 99.9 percent purity as well as gold exchange-traded funds (ETFs). Those who own GOLD can use it as collateral for loans through GoldMint. Borrowers can also give GoldMint gold jewelry, coins, or other items as collateral, where it will be safely stored in its “custody bot.” Borrowers who default on loans will lose their GOLD to GoldMint. GoldMint will also issue credit cards with limits that depend on how much GOLD a user owns. By providing these essential services, GoldMint will function much like a bank with the added security of being backed by a precious, tangible asset.
Those who are interested in learning about or investing in a gold-backed cryptocurrency can read GoldMint’s whitepaper here. The GoldMint website also gives a comprehensive view of the organization’s services and goals, and provides the names of the organization’s executives, developers, and advisors.
While some critics point to cryptocurrencies as backed by nothing tangible or of intrinsic value, this is not the case with GoldMint. GoldMint gives investors the opportunity to get into both cryptocurrencies and gold, thus potentially enjoying the best of both worlds.
For more information about GoldMint: