Bitcoin’s success has captivated everyone, as investors enjoyed over 4,000% profit throughout 2017. This milestone is, by no definition, a small success. It is huge and has grasped the attention of almost all the financial institutions all over the world.
Many call it a fad, a fraud, and some even go ahead and call it an abomination that should not have even existed. However, all the criticism did not stop bitcoin from soaring higher than anyone’s expectation. As quickly as it arose, it also fell, and the price is dwindling around $10,000, at the time of writing. The current rate is still impressive when considering the fact that bitcoin was valued at $1,000 per coin at the beginning of 2017.
Considering this fluctuation, Australia’s largest gold refinery has decided that it would be a good move to launch a gold-based cryptocurrency.
Chief Executive of Perth Mint, Richard Hayes stated the following regarding the project:
Mr. Hayes believes that the creation of a gold-based cryptocurrency would allow for better stability. He explains that such cryptocurrency would be more reliable, and it would mean that the tokens are actually backed by something physical.
He explains:
This isn’t the first project that intends to back a cryptocurrency with gold. In 2017, Onegram, also intended to perform a similar project. However, it resulted in a huge failure and the company was only able to sell 0.14% of its intended target. Australia’s project may eventually get backed up by the government, which would mean that it would have greater chances of success.
Many call it a fad, a fraud, and some even go ahead and call it an abomination that should not have even existed. However, all the criticism did not stop bitcoin from soaring higher than anyone’s expectation. As quickly as it arose, it also fell, and the price is dwindling around $10,000, at the time of writing. The current rate is still impressive when considering the fact that bitcoin was valued at $1,000 per coin at the beginning of 2017.
Considering this fluctuation, Australia’s largest gold refinery has decided that it would be a good move to launch a gold-based cryptocurrency.
Chief Executive of Perth Mint, Richard Hayes stated the following regarding the project:
“I think as the world moves through times of increasing uncertainty, you’re seeing people look for alternate offerings and you’re seeing this massive flow of funds into the likes of Bitcoin at the moment because people are looking for something outside of the traditional investments.”
Mr. Hayes believes that the creation of a gold-based cryptocurrency would allow for better stability. He explains that such cryptocurrency would be more reliable, and it would mean that the tokens are actually backed by something physical.
He explains:
“So, it will have all the benefits of something that is on a distributed ledger that settles very, very quickly, that is easy to trade, but is actually backed by precious metals, so there is actually something behind it, something backing it.”
This isn’t the first project that intends to back a cryptocurrency with gold. In 2017, Onegram, also intended to perform a similar project. However, it resulted in a huge failure and the company was only able to sell 0.14% of its intended target. Australia’s project may eventually get backed up by the government, which would mean that it would have greater chances of success.