In uncertain economic times, investors often flock to “safe-haven” assets. Because of this trend, many have become curious about the potential of the cryptocurrency market but have shied away because of its volatility.
Then, stablecoins emerged on the scene as a check against the wild price swings of traditional cryptos like Bitcoin and Ethereum. Since their emergence, they have gained attention as an asset people can purchase to dip their toes into the cryptocurrency world while still having a useful hedge against volatility and general financial turbulence. This is because the vast majority of stablecoins are fiat-backed, meaning traditional currency or commodities like precious metals serve as the reserve.
GoldCoin is a crypto coin backed by gold based on the Ethereum blockchain. The coin represents the first time a fractionalized gold-backed asset can be bought with fiat or other virtual currencies. But is GoldCoin as good as gold? Does buying a cryptocurrency backed by gold give investors the same opportunities and potential as purchasing physical bullion? Read on to learn more.
Breaking Down GoldCoin
Security and safety are often some of the most important features for gold buyers as storing valuable bullion opens up the risk of theft unless secured in a bank or storage facility, which can cost a lot of money.
Thankfully, GoldCoin investors have the advantage of purchasing digital coins in a secure manner with a seamless redemption process. GoldCoin also clearly lists the steps of the redemption process for physical bullion on the website. Then, holders work with team members to verify holdings and receive a physical location for bullion pick up.
Coin holders are required to verify their identity before a purchase order for physical gold can be arranged. This ensures that the account holder is the only one eligible to pick up the physical bullion. The transparent and easy-to-understand redemption process stands out compared to competitors that are sometimes unclear about how to redeem physical bullion. Those who buy and sell on Goldcoin’s website are also required to perform two-factor authentication before logging in to reduce the chances of hacks.
Storage and security of coins is also simple due to the Ethereum blockchain. GoldCoin is able to be kept in a variety of popular, safe, and easy to use Ethereum based wallets like MetaMask, Trezor, and Ledger.
Safeguards To Secure Bullion and Guarantee Investments
One of the biggest concerns people have with stablecoins is the validity of reserve assets. Tether has an infamous reputation for not having proper reserves to backup offerings as the company was accused by authorities in 2019 of hiding an $850 million loss of client and corporate funds.
The team members behind GoldCoin take extensive steps to assure coin holders about the validity of reserves. All bullion is 99.9% pure and stored in vaults, and a reputable third party reviews stored bullion to prove the coin is backed by enough reserves. Additionally, a 24/7 livestream is set up to allow coin holders to view stored reserves anytime.
This puts GoldCoin above many other projects who just rely on audits and reviews to prove reserve backing. GoldCoin holders can simply log on and receive assurance their cryptocurrency is physically backed.
A Clear And Concise Vision
Many cryptocurrency projects do not survive because their teams do not have a vision for the future. A project that collapses dramatically harms investors as their coins could become worthless overnight.
The project has a listed plan of being added to a leading cryptocurrency exchange in 2021, along with opening up GoldCoin purchases via an ATM and precious metal network.
Future quarters include the expansion of the GoldCoin team and increased market opportunity and business development plans for the project.
GoldCoin’s vision is clear and concise. Objectives are measured and realistic, especially given the turmoil seen in 2020. Projects with a clear vision and roadmap for growth often perform well, increasing the coin’s value and viability.
The Vast Potential Of GoldCoin
GoldCoin’s adherence to strict security measures, transparent bullion verification, and a seamless redemption process make the project a worthy investment.
The coin can be regarded ‘as good as gold’ by investors eager to diversify their digital portfolios while being able to redeem physical bullion.