Australia Back Cryptocurrencies With Gold

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Will Gold-Backed CryptoCurrency Protect Your Investment

Cryptocurrency markets are dominating public imagination at the moment. Some commentators are excited about new technologies whilst others harbour high hopes for blockchain technology to improve a flawed financial system.

The potential for huge investment gains is everybody’s secret goal of course. However, the cryptocurrency market is highly volatile and, as with all investments on the stock market, investing in digital coins carries a risk.

In the last month, the cryptocurrency market has shuddered. Bitcoin, the beacon of cryptoassets, has fallen over 50% from a dizzying high of almost $20,000 to a gut-wrenching $11,500.

Analysts are not sure which way the swing will go next for Bitcoin prices. Speculations range from $4000 to $100,000. There is a question mark over whether cryptocurrencies will even survive the year.

With impending government regulations, endless Bitcoin scams and cryptocurrency exchanges being hacked, digital assets do have a point to prove.

However, the reality is, cryptocurrency is here to stay. According to reports published in Forbes, 30% of millennials prefer to invest in cryptocurrencies. Furthermore, mainstream institutions are investing in platforms that support digital payments and government regulations will boost customer confidence in digital currencies.

However, for investors, the cryptocurrency market still presents a huge gamble. There are over 5000 digital coins in circulation, all vying to be adopted by the public consensus as the coin of the future. A handful may survive, but the majority will fail.

We’re still in the early stages of blockchain technology, but its potential to create a safer internet and a stable economy is worth serious consideration. Mainstream financial institutions don’t like it, but even global banks are investigating how blockchain can be adopted worldwide.

Blockchain technology is a self-regulating system that is peer-to-peer viewed. Every transaction that is created with a digital coin is recorded on a public ledger. Worldwide adoption of digital payments will eliminate fraud, tax evasion and money-laundering.

Of course, mainstream adoption of digital currencies is a goal and not an accomplishment. In the meantime, the main role for cryptocurrencies represent an investment opportunity.

The increasing uncertainty of cryptocurrency investment is persuading investors to look for alternative options. In Australia, the solution is to offer gold-backed cryptocurrencies that act as an investment safety net.

The Perth Mint, Australia’s biggest precious metal refinery, has pledged to create a stable investment. CEO Richard Hayes said:

“There’s nothing in terms of cryptocurrencies that actually back the currencies. 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.”

The Perth Mint is not the first company to announce a cryptocurrency backed by gold. Last year, GoldBitsCoin, a subsidiary of MyWealth Manager Financial Services PVT Ltd, launched a platform to support investments of gold-backed currencies.

Gold-backed cryptocurrencies is an initiative that provides a win-win situation for investors. Every digital token investors purchase is backed by gold, a commodity with real value. According to a recent press release on Fox News, GoldBitsCoin provide a trusted infrastructure and secure digital wallets. The company has already received significant financial backing from investors in the Middle-East.

Backing digital tokens with precious metals seems to be the most sensible for solutions in a market that is highly volatile. The uncertainty of the cryptocurrency market also puts the investors at risk, whereas gold has been a trusted safe haven for thousands of years.