Gold-backed Cryptocurrency As The Panacea To Global Currency Volatility — What’s New?
(Update: Aurus just announced the unveiling of its stablecoin supported PoS and debit card. Click here)
Our forebears were not entirely wrong- their instincts were on point when they introduced Gold and silver as a universally accepted choice of money to displace the problematic barter system. Indeed money is as old as human civilization. We’ve now come so far as to have agreed on major identifying marks of money namely: Medium of exchange, unit of value and store of value. Sadly traditional gold did not pass the litmus test for money as its inherent indivisibility amongst other things made it unsuitable as a medium of exchange. With no one to effectively tweak the idea the whole system was thrown away baby and bathwater. An entirely new system of paper money was invented in China in the 5th century and many centuries later the world adopted it has the new standard, a mistake we have continued to pay for in one form or another. There’s a laundry list of cons, from government-controlled money being used to control and impoverish people to cases of hyperinflation; wherever you are on the spectrum, we can all conclude that the advent of the fiat currency was a big mistake.
Gold is suddenly looking good now and for good reason. Gold actually trades more than any other financial assets with daily trading volumes between 67 and 150 billion US dollars. The world was desperate for a solution so when Bitcoin’s Satoshi Nakamoto proposed his (or her?) idea of money many eagerly jumped on the bandwagon. Since then over 1500 Crypto coins have been invented and that’s without counting the scam coins that have flooded the market since. So, did we finally find the solution to the problems in this new money? The answer is not an unequivocal yes or no for while on one hand people finally found money they could use without Uncle Sam’s prying eyes, the problem of hyperinflation remained. But rather than discard our half win like our ancestors we continued to tweak the new money and the idea of a stable coin was born. An idea so simple and genius — a cryptocurrency that helps cushion volatility by pegging it to something (real assets, Cryptos, fiat or algorithmic pegging, etc.).
Sadly the solution to hyperinflation and volatility continues to prove elusive and this despite having tried it all from crypto-collateralized to fiat-collateralized to non-collateralized. The world keeps learning and researching and now it’s come to a focal point where a new type of stable coin is in sight and early signs show that this is more than just a hyped new wave, it might be the long awaited panacea for inflation. The idea centers on having a truly gold-backed stable coin. A major selling point for Gold is its intrinsic value, something traditional cryptocurrencies lack. Gold-backed cryptocurrency combines old school money (gold) and new school money (cryptocurrency). With the first gold-backed digital currency dating as far back as 1999 when Douglas Jackson launched E-Gold this idea is not entirely novel. Since then several gold-backed cryptocurrency (if we can truly call it that) have flooded the market. Digix, GoldMint, Xaurum, AnthemGold, Vaultoro, Ozcoin, Zengold, AgAu, Novern, Darico are a few notable examples. But gold-backed stable coins continue to face problems of volatility only in this case the problem lies not with the idea but in its execution. Many of these purportedly gold-backed Cryptos in reality do not represent actual gold ownership and only allude to equity.
Other attendant problems of gold-backed Cryptocurrency include the use of centralized vaults, lack of liquidity, regulatory uncertainty and non-transparent accounting of gold vaults. If only there was a stablecoin to fully embody the characteristics of a truly gold-backed coin and prove once and for all that it is the long awaited solution to hyperinflation and volatility.
Aurus to the Rescue
This is what Aurus have set out to accomplish. Aurus is interesting for currency stability seekers. Founded in 2018, Aurus has made great strides in replicating the traditional gold market in digital form. Its AurusGOLD (AWG) token, is an ERC-20 token backed fully with audited Gold. Only gold from LBMA certified refineries is acceptable by Aurus. LBMA is a global authority for the precious metal market setting the standards from the purity, form and provenance of the bars to the way in which they are traded. There’s no gimmick here. Owning Aurus AWG is equivalent to owning high quality physical gold and will continue to have a stable value close to that of gold bullion. In fact each AWG is collateralized and redeemable for 1 gram of physical gold. Yes, the real thing.
To reiterate, it means that for every AWG there’s 1 gram of physical gold waiting for you in one of Aurus approved vaults. How does this work? Through a painstaking vetting process, Aurus will partner with approved gold vaults and global gold brokers and distribution partners who are the only ones capable of initiating the AWG mining process. New tokens are only minted after the gold is audited. And in the event of a physical gold withdrawal the appropriate number of AWG are burned. What’s more, AWG ensures that your gold is fully insured against financial and natural disasters. Your gold is also independent of Aurus and you have complete ownership of it. AWG is primed to become the new money perfectly fulfilling all the most important features of money and implementing it digitally using blockchain technology. Unlike others in the gold-backed cryptocurrency market with single centralized vaults and minting processes, through partnering with many local qualified vaults, brokers and distributors Aurus ecosystem will have a network of partners enabling investors to withdraw gold from a location closest to them. AWG’s global adoption will be to the benefit of all ecosystem participants.
Profiting From the Gold-Backed Market
With the cure for hyperinflation in the bag, Aurus is also presenting a way to make AWG profitable to all, which let’s face it is what most people are really interested in when a new coin hits the market. This is exactly why a secondary coin, AurusCOIN (AWX), an ERC-20 Ethereum based token has been incorporated in the Aurus ecosystem to serve as a mechanism to distribute profits across the Aurus network to all stake holders including partners and investors. Here’s how it works. Just like an Ethereum user pays some Ethereum gas to make transactions in Ethereum between wallets, AWG users will also pay a very minimal transaction fee for trading AWG. The difference is Ethereum doesn’t share its profit from transaction fees with you, but Aurus will. All the fees are stored in a smart contract and distributed thus: 70% to AWX investors, 15% to vault partners, and 15% to provider partners. Both AWX and AWG will ensure the sustainability of Aurus.
Purchasing AWX today is especially urgent because of its limited supply of 30,000,000 pre-mined units. So now is the time to get in the Aurus network as an early backer. There is a projected high demand if AWG survives the test of volatility as it will attract many who wish to take refuge in stablecoins to avoid losses during cryptocurrency bear markets. AWX also has the advantage that aside the mandatory Ethereum transaction fees, there are no additional transaction fees or annual fees for AWX. Tokenized gold will reach its peak potential when it becomes viable as a means of payment for everyday transactions. To that end arrangements are underway to integrate AWG in as many payment gateways as possible to drive its adoption as a store of value. AWX value will increase over time has more and more users adopt AWG which is why investing in AWX is a really smart choice. Now is the time to use your volatile fiat to purchase assets that can actually preserve their purchasing power.
AWX IEO starts in Q2 2020. Will you participate and set yourself up for success? Strike gold today by investing in AWX. For more information, visit Aurus official website at aurus.io.
Be sure to follow Aurus’ social media channels to stay up to date