Cryptosphere Continues Its Love Affair With Gold-Backed Tokens

The cryptocurrency world is seeing a boom in the number of gold-backed tokens being issued, with some of the industry’s biggest and most controversial getting in on the trend.

While Bitcoin has been referred to as “digital gold” since 2009 cryptocurrency participants have been emphasizing the hedging possibilities of actual precious metal. This has shown in the fact that Bitcoin has traded in a rather narrow range since June. Bitcoin isn't the only one effected, some Bitfinex-listed coins have dropped in volume by as much as 10% since early summer.

This latest trend of precious metal backed coin seems to be brought on by weakening real interest rates and weakening national currencies causing uncertainty among consumers. These events combined with the increasing regulatory clarity around non-security options lead people to choose the historically safer option, gold. Gold backed coins offer the safety and security of precious metals like gold and combines it with the flexibility of blockchain.

By Ramsey Baker

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