by Stephen Flood
GoldCore
The debate between relatively new digital cryptocurrencies versus ‘tried and true’ gold has dominated most precious metals related websites. But what if gold and cryptocurrencies were combined? According to a Bloomberg article a NYC Real Estate Mogul, after learning about cryptocurrencies from his son, is putting this concept to work by securing a minimum of $6 billion in gold reserves to back his new cryptocurrency.
The concept of pegging a digital currency to an external reference is not a new one. Called stablecoins the idea is to back the currency with something permanent. Using gold reverts currency back to the origins of how our traditional banking system started and helps ‘stabilize’ price instability.
In the future, will digital currencies (when combined to physical gold or physical silver) offer a new opportunity for re-inventing the old banking system? Today banks and governments rely upon one another.