April 04, 2018 308By Nathan Bentley
"With a crypto-gold or a crypto-precious metal offering, what you will see is that gold is actually backing it. 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."
"If you use precious metals to back something on blockchain or something that is allied to blockchain, it retains its intrinsic value, unlike the offerings from Bitcoin and Ethereum, which really rely on everyone believing that there's something behind it."He is certain that a cryptocurrency backed by something of inherent value, such as gold or silver will not depreciate in value as randomly as standard cryptocurrency does, simply because precious metals have a baseline intrinsic value that is not affected by digital stocks etc. According to moneymetals.com, 1g of Gold is currently valued at $42.89. Over the past year, the value of gold has teetered between $38.00 and $43.00 per gram, over the past 5 years it’s moved between $34.00 and $46.00 per gram, suggesting that actually it’s value is set at a certain level. Hayes and Perth Mint believe that because of this, the value of a gold-based cryptocurrency (for example) would stay in line with these rates and as such, will not be as volatile. Perth Mint’s plan aims to set up a new cryptocurrency which will encourage investors to start to buy into precious metals, it will make it easier for the lay person to access silver and gold on a market that is notorious secure and transparent, i.e. the blockchain. They expect to have a product launched in the next 12 to 18 months. Featured Image Source: Pixabay