For over the years, gold has looked as one of the best investment options. Even today’s time it still stands strong. But investing in gold has different drawbacks. For instance, you need to store them in a secure place, you cannot buy or sell your gold at any time, and so on. And this is where gold-backed cryptocurrency comes into the picture.
Gold-backed cryptocurrency works as a derivative asset that allows you to easily purchase, trade, and hold gold at any time and location. There is no need to deal with physical gold. Instead, everything happens over the internet.
So the question is, what are some of the best gold-backed cryptocurrency available out there? Well, let’s quickly go ahead and have a look at it:
Best Cryptocurrencies Backed by Gold
1. Tether Gold (XAUt)
Tether Gold (XAUt) is a new product launched by Tether. The main idea behind this token is to create a cryptocurrency backed by gold. This is said to work as a safe asset that historically gains value over time.
The coin offers security of a digital asset and the safety being pegged to physical gold. This means, as gold gains its value, XAUt will also get its price increased.
However, it is not the first digital currency built backed by gold. But it is one of the best gold backed crypto to look for.
One full XAUt token represents one troy fine ounce of gold on a London Good Delivery bar. You can transfer the coins to any on-chain address from the purchaser's Tether wallet where it is issued after purchase. Also, specific gold bars will be associated with each on-chain address where Tether gold is held.
Furthermore, each XAUt represents ownership of one troy fine ounce of physical gold on a specific gold bar. As a result, you will enjoy undivided ownership rights to gold on the specified gold bars.
2. Paxos Gold (PAXG)
Paxos Gold (PAXG) is one of the most popular gold-backed cryptocurrencies available out there. It is a crypto asset backed by real gold reserves held by Paxos, a for-profit company based in New York.
Each PAXG token represents the value of 1 troy fine ounce of gold custodied in vaults by Paxos and its partners. And its market value is based on the physical gold price.
The token is built on the Ethereum blockchain. As a result, you can trade the token for other crypto assets.
Also, to make sure that the value of the coin doesn’t drop, Paxos undergoes monthly audits to attest that its supply of PAXG tokens matches the amount of gold it holds.
You should also know that Paxos charges a small fee for the creation and destruction of PAXG tokens. Also, there are on-chain fees that you have to pay for moving the tokens on Ethereum.
Plus, you can easily convert or redeem PAXG for fiat, physical or unallocated gold via the Paxos platform.
3. Perth Mint Gold Token (PMGT)
Next, there is the Perth Mint Gold Token (PMGT). This one is a blockchain token developed and issued by Trovio.
Each unit of PMGT represents one fine troy ounce of physical gold securely stored in The Perth Mint's central bank grade vaults.
The token is based on GoldPass, The Perth Mint's full-service gold investment platform that digitizes physical gold in the form of digital certificates.
Also, PMGT offers a tokenized version of GoldPass certificates on the Ethereum blockchain as an ERC20 token. Moreover, all the PMGT tokens are 100% backed by GoldPass certificates issued by The Perth Mint.
You can also conveniently trade and hold gold stored at the Perth Mint. Plus, you can digitally manage your entitlements over the physical gold, convert and pick up gold bullion of your choice or get it delivered globally.
Moreover, the price of PMGT stays stable. As it represents physical gold value. As a result, it offers token holders risk diversification and hedging against market volatility at superior credit quality while avoiding costly conversions between fiat and crypto.
4. Meld Gold by Algorand
Meld Gold streamlines the gold supply chain and makes investing in gold extremely easy for all the investors out there.
The token offers secure and seamless access to its own gold. So you can easily buy, sell or trade gold in real time. Plus, it helps in reducing the volatility traditionally associated with the procurement of gold.
The meld network is extremely transparent and low risk. As a result, meld gold investors can stay protected against inflation.
Meld Gold uses Algorand's advanced protocol to deliver gold that is traceable, fungible, transactable, transferable, and redeemable.
Meld will tokenize digital gold in the form of a Meld Digital Gold Certificate. These tokens, which are equal in value to one gram of physical gold, will be supported by the Algorand Wallet. This will allow holders of digital gold to monitor the value of their assets and transact with other wallets in a quick and secure way.
5. Gold Coin (GLC)
In the end, there is the Gold Coin (GLC). This one is a peer to peer or P2P cryptocurrency, which was developed by an anonymous person back in 2013.
It is pretty much like Bitcoin as it has no single company or individual owner. GoldCoin is decentralized and open source, and it belongs to the world.
Since the time the coin has launched, crypto enthusiasts and programmers who believe in promoting economic freedom have got involved in its development. Thanks to these principles and a focus on game-changing usability features, like two-minute confirmation speeds and instant 0-Conf transactions, GoldCoin is fundamentally changing how cryptocurrency and economies operate.
It is a feature-rich token with a 2 min block interval compared to Bitcoin, which has a 10 min block interval. It also comes with a 32 MB block size, whereas Bitcoin has a 2MB block size.
It supports on-chain scaling and has a network capacity of 1120 TPS. Also, transactions happen instantly on it.
Final Words:
So those were some of the top gold-backed cryptocurrencies available out there. Now go ahead and check these coins out, their history, and fundamentals before investing in any of them. Also, if you wish to ask anything, drop a comment below.
