Gold Backed Crypto
Recently UK launched it's gold backed crypto:
"The Blockchain-based coin, called Royal Mint Gold (RMG), is a digital representation of gold stored in The Royal Mint vault.
The Royal Mint Bullion, the Royal Mint company that sells physical gold, is the first company to allow customers to hold gold-backed assets on Blockchain, Tom Coghill, RMG’s Commercial Lead, stated in an interview with Express.co.uk. Coghill also mentioned that one RMG coin is equal to one gram of gold, adding that “it’s real gold you’re holding when you’re holding our RMG.” Source: Cointelegraph article Jan 18
Australia was soon to follow.
How many more counties will join...Don't know but this will be the way of the future..
Crypto Let's go to work!
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hmmm! Very interesting! Will the price stay relatively stable, similar to Tether because it is backed by a physical commodity?
That is the question. .indeed
The thing is, when you bind your crypto to an asset you can create money out of thin air and claim it's backed by something when it's really not. Tether is already accused of doing this. People think that there isn't enough USD to back up Tether. Tether is tied to Bitcoin so this inflates the value of Bitcoin; Bitcoin will crash if Tether crashes. Also, if everyone tries to pull out their money the people who are last lose everything.
We've already tried to bind USD to gold. What an abysmal failure. Why would crypto be any different?
Hmm..good points here. Thx for your reply