The fusion of Blockchain and real gold could significantly revolutionize the world of crypto. Giving birth to a type of gold coin currency running on the virtual realm, it has successfully solved tons of issues that concern real gold and the Blockchain.
How Gold Backed Crypto Transformed the World of Cryptocurrency
The key to the innovation that resulted from merging gold and blockchain lies on the solution it has brought to significant currency issues. This includes issues in using precious metals and currency and problems that surround cryptocurrency in general.
What Gold Backed Crypto Have Solved for the Precious Metal Market
Albeit gold has a very high value, it is extremely difficult to mine. Moreover, you need extra effort in keeping it as well. Gold and other precious metals have high demands for resources for the entire mining process and bullion creation. This makes the availability of gold extremely limited, which also makes it difficult to become a regular currency like ancient times.
With gold asset backed systems running on blockchain, the storage and distribution of gold will be much simpler and efficient. A company like Kinesis just have to store bullions in their reserve, and subsequently release cryptocurrency counterparts on the blockchain. Virtual gold coins release on such manner depends its value on grams of gold, like 1 KAU of coins in Kinesis equal to 1gm of gold.
This can let gold and silver circulate like a common currency once again. Since it runs on the blockchain, it would be easier for people to acquire gold and use it on virtual transactions. You can even use it up to purchase products and properties, considering that the seller or dealer accepts virtual gold as payments.
What Virtual Gold have Solved for the Crypto World
Volatility is the biggest antagonist of most cryptos. This makes cryptocurrencies extremely unpredictable, especially those that depends their value solely on user confidence. Bluntly speaking, such kind of cryptos are basically standing on thin air as well.
With the rise of a type of gold coin currency running on blockchain, it finally gave volatility a hard blow. It could even eliminate volatility as well. This is because of the fact that it bases its value on real precious metal, which values do not quickly hop or drop in an instant.
As a result, you can have a gold backed cryptos as a worthy investment. You can even have a good assurance of it rising in value through time. Moreover, you can also claim your gold from its source company whenever you want. This simply means that having virtual gold on the blockchain is equal to having real gold in a safe reserve.
You just have to look for a type of gold coin currency that has a reliable platform, and carefully choose where to invest. After you make your investment, you can have your virtual gold to keep or use.
You can also visit https://kinesis.money/en/guides/merging-gold-and-blockchain/ to learn more about this revolutionary merge. Kinesis is a gold block chain as well, where you can invest or buy some virtual gold and silver.