What Is Gold-Backed Cryptocurrency?
In spite of the world going ga-ga over digital currencies, nobody seems to know what’s making cryptocurrencies tick. And that’s because most digital currencies have no physical backing and are transferred from peer to peer, via a computer.
Enter gold-backed cryptocurrencies.
As their name implies, these digital currencies are backed by gold. So, while they have all the benefits of being on a distributed ledger and are easy to trade, they are actually backed by a precious metal.
By using a precious metal to back something up on a blockchain, the cryptocurrency’s intrinsic value gets retained, unlike Bitcoin (BTC) and Ethereum.
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