For investors of cryptocurrencies, a new one, GoldMint, offers to back its cryptocurrency with gold of 99.9 percent purity as well as gold exchange-traded funds (ETFs). Thus, investors who are interested in both gold and digital currencies will have a special opportunity to participate in both through GoldMint.
Throughout history, gold has maintained its value due to its scarcity and high demand. Gold has been in demand universally due to its beautiful yellow luster, rarity, durability, divisibility, and malleability. Because it is so rare, it has intrinsic value. Unlike paper currencies, gold cannot simply be printed, which causes paper currencies to lose their value as their supply grows over time. Also due to its rarity, it is highly sought after as a store of value among investors.
Bitcoin and other cryptocurrencies, while generating enormous interest in recent years, have received criticism among some investors as they are perceived to lack intrinsic value. By underpinning the GoldMint internal token — MNT — with gold, those who own GoldMint tokens can feel confident that their ownership of the cryptocurrency has intrinsic value. Owners of GoldMint tokens can also invest in other competing digital coins or investments, with the knowledge that their investment in GoldMint potentially offers them a hedge to uncertainties or volatility from other investments.
Services to GoldMint Customers
GoldMint along with financial partners will offer to its customers a credit card allowing customers to use it wherever Visa and MasterCard are accepted. GoldMint customers will thus be able to use it at millions of locations worldwide, bringing extra convenience. Credit card limits will be based on the stored gold of customers.
Customers interested in a loan can send gold items to GoldMint’s “Custody Bot” for inspection to be used as collateral. The Custody Bot will analyze the gold using spectral analysis and hydrostatic weighing to determine its purity and value. Before the gold is placed into the Custody Bot, a specialist will review the gold. When gold is accepted and withdrawn, it is timestamped on the GoldMint blockchain. Custody Bots will be distributed to select pawnshops and trading centers.
GoldMint will also allow investors to earn significant interest when lending their gold. Thus, for such investors gold will function not only as a store of value — maintaining its purchasing power despite inflation or deflation of paper currencies — but also potentially as a means of earning income from savings. Because GoldMint uses “proof-of-stake,” holders of MNT tokens will be able to mine the cryptocurrency and receive extra amounts in proportion to how much MNT they own. However, those who wish to mine must download and launch the GoldMint client and must meet a certain threshold of computational power. Those with insufficient mining power can rent it from other miners. The amount of MNTs will never exceed 10 million.
Users will also be able to access their GoldMint accounts using a desktop or mobile client, allowing them to see how much gold they own as well as their transaction history and other account information. By providing a user-friendly and secure software platform, more people are likely to be drawn to gold investing through GoldMint.
At a time when central banks all over the world continue printing paper money unbacked by gold, causing it to be devalued and driving prices for goods and services up, GoldMint offers its customers a potentially better alternative to spend and store their wealth.
*I am receiving GoldMint tokens for the growth of the community.