Is there any advantage for Cryptocurrency that is backed by gold?

During the last few years, the world has seen an increase in cryptocurrency altcoin, which aims to replicate the success of the Bitcoin. An interesting factor to consider is the most digital currencies do not have a support value, they are determined by how much someone is willing to pay for them. Partially explain the high volatilitasnya. But what if there is a digital currency backed by something more substantial? Gold, for example?

In February this year, precious metals mining company based in Toronto, Yamana Gold, licensing solutions fintech blockchain Emergent supply chain Technology origin of Santa Clara. This technology allows the company to track the origin of a responsible, free gold conflict through the entire chain from mining, refining, and to get to the safe.

Using blockchain technology to facilitate smart contracts, everyone from miners and refinery into a provider of logistics and insurance companies can track the movement of assets through digital books timeless. Cryptocurrency new, only this time it's all backed by gold.

Every G-Coin will be supported by 1 gram of gold, with its value depends on the price of spot gold market. Yamana'S CEO Peter Marrone said that G-Coin is a currency that is socially responsible and economically, that is backed by gold. The advantage of this technology is two-fold, first is the commitment to human rights that shrink the conflict where precious metals, both G-Coin will act as digital certificates to indicate the ownership of gold. It will be available both as an investment class and a new currency.

Unlike cryptocurrency, where ownership is based purely on ownership, G-Coin will allow special ownership, either coins or gold. As a result, it can be used to transfer wealth, the payment of the goods, or the purpose of investment and trade. Although a little downhill, gold is still classed as precious metals are very expensive and sought after. Not surprisingly then FXM stated that gold is still traded in a variety of ways.

This includes trade through futures, options, and contracts for difference (CFD). It is common, for example, for traders to invest in gold over-the-counter through the New York Commodities exchange. Meanwhile, traders outside the U.S. often take the opportunity to invest in CFD trading, which allows traders to speculate on fluctuations in gold prices. New developments in cryptocurrency supported gold is increasingly opening up new ways to invest in precious metals.

With G-Coin, investors and traders around the world know that the gold they buy comes from a responsible source, supported by a supply chain that can be audited, indisputable and transparent. Of course, G-coin is not the only cryptocurrency that is backed by gold. Even some of the others have turned up this year to offer ICO. However, G-Coin was the only one who claimed that they were backed by gold.

With much less volatility than the other cryptocurrency and Bitcoin, G-Coin gold coins and other digital at least, always equal to the current price of gold. This means if their popularity rises, the value of the coins will also increase. Who knows? It could even rise higher than the value of one gram of gold in the years to come.