Cryptocurrencies have a short but exciting history with major innovation and fast-growing markets at the forefront. Many investors think that the next big thing in crypto will be the adoption of cryptocurrencies backed by hard assets, such as GoldCoin.com. Let's explore what's been happening in the world of crypto and what big innovations are just around the corner.
The Evolution of Crypto
The official start to the crypto industry was the introduction of Bitcoin in 2009 as a peer-to-peer payment system that was uncensorable and secure. As that network of crypto coins grew over time, other projects cropped up. By early 2017, the Ethereum Virtual Machine had launched allowing for decentralized crowdfunding using crypto coins. That was the beginning of the ICO boom.
Several years later, after a long bear market for cryptocurrencies during which many companies built out infrastructure, the DeFi phenomenon was born. It allowed people (at their own risk) to pseudonymously find lending and borrowing services that provided vastly more favorable rates than anything you'd find in a bank or investment company.
Out of all of this sprung the NFT industry, which gave artists, musicians, and investors the world over a way to tokenize everything from art and songs to real estate.
During all of these events, another innovation was in the works - the stablecoin. These crypto coins were backed by something. In the earlier cases, it was USD. But now we see cryptocurrencies that are backed by precious metals like gold become dominant in crypto markets.
Gold's Storied History
Gold has been a highly valued investment for over 4000 years. Not only that, during all that time, it has also been used widely as money itself. Today, gold is also used in electronic and computer manufacturing, dentistry technologies, and many other industries over and above jewelry making.
Investors have long turned to gold to protect their assets, especially during times of upheaval. Gold is one of the world's most liquid and recognizable assets and is a leading store of value assets that continues to grow in value over time.
Most people are familiar with buying gold bars or coins or even mint certificates of ownership as ways of investing in gold. But a new and better way to invest in gold has arrived.
Where Gold and Crypto intertwine
What many investors may not realize (yet) is that you can now have access to a modern, digital currency that is backed 1:1 to gold. Why is this important? It gives people a way to bring their gold investment into the 21st century. Digital currencies are the future, but gold is not getting left behind. Most cryptocurrencies have no real value standing behind them. Moreover, many of them have zero liquidity.
So now imagine a cryptocurrency stablecoin that is backed by gold. Its price is not as volatile as Bitcoin and Ethereum because it is correlated to gold's price, which is historically stable. Plus, you enjoy a liquid digital asset that can be easily traded, bought, and sold online in a multitude of markets.
What's next for Gold Backed Crypto?
This is only the beginning for gold-backed crypto coins. In the future, watch for stablecoins like GoldCoin to move up in market cap as more and more investors seek to combine the best of crypto with the world's most popular safe-haven asset.