Categories
Crypto News Updates

Gold Exchange Review: The Rise of Gold-Backed Cryptocurrencies

Gold investments have recently become a lot easier than they were before. With a huge wave of new cryptocurrencies appearing on the market, one does not have to stress about soliciting a broker to buy the asset.

The driving force behind this innovative era is gold-backed cryptocurrency (aka. Stablecoins). The value of this type of cryptocurrency relies on the value of gold, which a third party puts into storage. In comparison to other cryptocurrencies, the ones that are backed by gold are more stable. Moreover, their value cannot drop below the current gold rate. They allow investors to purchase precious metal-pegged digital assets.

Nowadays, it seems as though the crypto space is experiencing its own gold rush. Numerous projects are launching and are allowing crypto investors to gain exposure to gold. One of these projects is the trading platform, Gold Exchange.

Gold Exchange

Gold Exchange is a digital currency exchange that gives users the opportunity to purchase, trade, and sell stablecoins, most notably its native token, GoldCoin. The platform is recognized for being the largest trading platform in the world.

With Gold Exchange, traders are able to establish levels of profit and loss by either utilizing stop loss or taking profit limits whenever they trade. Furthermore, they can determine the maximum amount that they are willing to risk when it comes to estimating the price – or setting a price – at which they could generate a profit. The platform offers countless future orders, including Buy Limits and Buy Stops.

GoldCoin and Gold Exchange have a clear vision and realistic objectives. By adhering to meticulous security measures, a smooth process of redemption, and transparent bullion authentication, the platform proves to be attractive to the average eager investor. It is too soon to definitively say that it will remain stable, let alone come out on top. Only time will tell if this vision remains steadfast in the years to come. However, its chances look promising so far.

Crypto and gold

For the longest time, cryptocurrency has come so close to revolutionizing banking and payments on a global scale. However, this milestone hasn’t been reached yet due to an array of obstacles, with one of them being the volatility of cryptocurrency prices. These erratic fluctuations are the primary reason for potential crypto users shying away from it. A lot of users – both inside and outside the crypto space – see the value of crypto assets as susceptible to many dangers.

Stablecoins are seen as the solution to this issue due to their tokens being backed by fiat or other assets, like precious metals. They are a new brand of cryptocurrencies whose objective is to offer price stability, and they are backed by a reserve asset. The amount of attention that stablecoins have garnered is not unfounded as they offer the best of traditional fiat currency and cryptocurrency. From crypto, they have the instantaneous processing and security of payments, and from fiat currencies, they have stable valuations that are free from volatility.

History of this union

The concept of a digital gold currency functioning as an alternative payment system is nothing new. Sometime after the Internet became more mainstream, E-Gold launched in 1996 and became the first gold-backed digital currency. E-Gold provided a digital currency that was pegged to the value of gold. Moreover, the service permitted customers to buy gold anonymously without limitations and government control.

Attorney Barry Downey and oncologist Douglas Jackson were the founders of this crypto. Jackson came up with the idea of a currency that does not rely on the influence of central bank policies and governments.

E-Gold’s lifespan was not long, though. Soon after its user base expansion to over three million customers, the Secret Service began investigating the digital gold service after a study showed that cybercriminals were using it for money laundering. The management assisted law enforcement in fighting dubious financial activity and the project owners were consequently penalized. Jackson was sentenced to 36 months of supervised release.

The project had to obey the regulations that rejected anonymous gold purchases. This would eventually result in E-Gold’s downfall. Despite this conclusion, E-Gold proved that there is a demand for digital currencies backed by gold.

Following E-Gold’s demise, different projects were launched in an attempt to fill the void that E-Gold left. However, none of them could survive in the long run. It is important to remember, though, that this was before the age of Bitcoin.

Blockchain technology would be established as a secure method of accounting and Bitcoin would later make a big name for itself. Because of these innovations, a new age of gold-backed digital currencies emerged and continues to this day.

 

Image by PublicDomainPictures from Pixabay

The post Gold Exchange Review: The Rise of Gold-Backed Cryptocurrencies appeared first on Live Bitcoin News.

Source: Live Bitcoin News

Leave a Reply

Your email address will not be published. Required fields are marked *