The concept of gold-pinned stable coins is as old as the cryptocurrency industry. History is riddled with attempts to make this elusive task a reality. While many of these platforms had the right business model, they failed due to various reasons. These failures led to the push for more fiat-based stablecoins in the market. However, as of late, gold-pinned coins are making a huge comeback.
Why Gold over Fiat
The reasons why someone would want to invest in a gold-pinned stable coin rather than a fiat-backed coin are pretty obvious. For one, fiat currencies come and go. They fluctuate in value and they can experience crushing inflation for various reasons.
One of these reasons being bad monetary policies on the part of lawmakers. These policies can change at whim and at the change of a political party. It’s exactly these monetary policies that birthed Bitcoin and the entire crypto market nine years ago.
Fiat-based stable coins do serve a valuable purpose in the market as a reliable means of payment. These coins are better suited for accounting and payroll purposes. It’s easy to calculate a fiat-based crypto payment’s value when it comes time to claim your taxes.
Fiat-based coins are not as stable as their commodity-based counterparts. Today there exist all types of commodity-based stable coins. From diamonds to silver, there is a token to help simplify your investment processes. Amazingly, the country of Venezuela even launched an oil-backed stable coin known as the Petro.
Sadly, US investors were unable to participate in the coin’s launch due to sanctions placed on the country by the US. Cryptocurrencies help investors to avoid becoming pawns in these political games.
Gold Operations over Gold
Another new trend that emerged this year was the pinning of coins to more than just the physical gold. Coins like GSX provide token holders with ownership over an entire mining operation. Not just the gold in the vault. GSX holders are the owners of all the equipment, gold, and even the land where the mines reside. As owners of these assets, they receive yearly dividends.
These dividends are paid out in proportion to your GSX holdings. The best part is since gold and real estate are both appreciating assets, GSX is inherently the world’s first exponentially appreciating stablecoin. Gold continues to hit new record highs in the market as uncertainty would be the best way to describe 2020’s trading conditions.
Transparency is another reason that investors are looking towards gold-pinned stablecoins over fiat coins this year. Operations like GSX provide full transparency of their operations. The platform allows third-party audits of all of its assets. These audits are conducted frequently and the data is broadcast to every GSX token holder.
Fiat-backed stablecoins have a history of not being “fully-backed” in the past. For example, when Tether USD, the world’s largest and most successful fiat-backed stablecoin entered the market, developers claimed a full 1:1 backing. However, these claims began to come under question as billions of USDT began to flood the market. Eventually, it came to light that the exchange Bitfinex and Tether shared many of the same executives.
This revelation caused even more suspicion in the market. Eventually, the SEC stepped in and accused Tether of attempting to try and cover up losses. Eventually, Tether changed its platforms backing from full 1:1 fiat currency over to fiat and loans. The change is major but the market accepted it because Tether is at the core of many investors’ trading strategies.
Another advantage that gold-pinned coins have over fiat-backed predecessors is security. GSX is the only quantum-resistant stablecoin in the world. Quantum computers are able to topple entire blockchains at will. Analysts have warned that these computers are on the verge of a price breakthrough. When their prices become more affordable, blockchains that are ill-equipped for these security concerns could find themselves at a severe disadvantage.
GSX is the first stablecoin issued on the Apollo blockchain. As such, this project continues to receive heavy media coverage. Apollo is considered by many as the most advanced blockchain in the world currently. This platform combines the best features from a variety of platforms with proprietary technologies to create a next-level decentralized experience for everyone in the market.
GSX will get to enjoy interoperability within the Apollo ecosystem. This platform provides developers with unlimited programming space via sharding protocols. In this way, Dapp developers can create new and previously unimaginable platforms using Apollo as their foundation. There are currently multiple Dapps and pilot programs under development within the Apollo camp.
Better Than Gold
It’s easy to see why GSX is far better than a fiat-backed stablecoin. It’s also easy to recognize why this asset is more valuable than its underlying asset in many ways. For example, GSX can function as a day-to-day payment system. All payments are made in a decentralized, peer-to-peer fashion that enables you the most flexibility and privacy. It’s also very easy to store GSX using the platform’s wallet feature.
Gold Beats Fiat Every Time
It’s easy to see why so many people have turned away from fiat-backed coins and embraced their gold-pinned brethren. These futuristic coins embody the openness of the decentralized economy, but they retain the security of the world’s oldest world currency. In this way, GSX acts as a bridge between the two worlds.
Good as Gold
It doesn’t take much research to realize that gold-backed stablecoins are the wave of the future. The key for anyone interested in investing in these tokens is to stick to reputable platforms. You need to be sure that your coin is backed, fully by the asset it claims to derive value from.
Platforms such as GSX provide investors with the tools they need to stay in touch with the latest developments as they occur. GSX is only available at GSXCDE at this time. The platform offers nice discounts of up to 50% for early bird investors.