Are Gold backed Crypto the future of money?
By Edmore Chikoore
The argument of whether cryptocurrency could replace money in the near future has been a hot topic of late. Some people say cryptocurrency is a bubble and could not possibly replace money in the future. The say it’s because virtual currency does not have intrinsic value and is based solely on speculation. On the other hand, others argue that paper money also has no value because it was lost when the gold standard was removed from the US dollar in 1971 by President Nixon and all that backs the money is just the trust in the US Government.
Both arguments stated above hold weight in their own respect, but I would like to push it further and say that in my opinion, only a few cryptocurrencies have the potential to topple the reigning paper currency. In order for us to point out which cryptocurrencies have what it takes to replace the reigning champion, we need to pinpoint the characteristics that make money what it is.
Gold backed Crypto
Without a spec of doubt, I believe Gold-backed cryptocurrencies have all the right characteristics to overthrow paper money. Firstly, it would be very easy for gold-backed cryptos to be widely accepted by people because, theoretically, people decide what they want to use as money (the free market). They will choose gold-backed cryptos because of the most important part of about them which is GOLD. Gold has a long history of being a reliable means of storing value and as a functional medium of exchange widely accepted by the people. Gold-backed cryptocurrency can fill in the role of money for the following reasons:
1. Security- Coins like the GMA token that are backed by gold royalties from gold extracted from its own mining operation therefore providing a less volatile currency.
2. Volume- supply cannot be manipulated like fiat money which causes the boom and bust cycles in the economy.
3. Portability -Cryptocurrency solves the gold portability issues, instead of moving around with bullion bars, you will have a digital representation of the gold or gold profits.
4. Proven consistency- gold has been used as money for over 6000 years of recorded history.
As Human beings and their technology evolve further, one thing is clear, nothing is permanent; currencies have risen and fell to nothing. One thing that has stood the test of time through all changes the world has seen, is gold, It is a reliable store of value.
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