According to Longman explanatory dictionary, the “currency” is the system or type of money that a country uses. In the modern world, there are different types of currencies: fiat currency and digital currency or cryptocurrency. Currently, there is no fiat currency in 2019 backed by gold since the gold standard was abandoned a long time ago. On the other hand, there is some digital currency backed by gold.
In simple words, a cryptocurrency is a form of electronic cash. All cryptocurrency is either BITCOIN or ALTCOINS. Altcoins fall within such groups as forks, stable coins, and so-called “coins with no value”. The name “altcoin” comes from an “alternative coin.” We use this term to describe any cryptocurrency, which is not Bitcoin. Altcoins appeared after Bitcoin started gaining popularity, and it has become clear that crypto is here to stay. Thus, Bitcoin’s success as a digital currency has paved altcoins the way to follow.
The rise of technologies like Bitcoin is the attempt to mimic gold’s properties and create “digital gold”. On the one hand, the desire to develop easily tradable digital gold has been a long-standing one. On the other hand, the experts still claim that Bitcoin can hardly replace gold. But what if these two can work together? After all, both gold and Bitcoin have overlapping characteristics. Besides, price movements for both assets are independent of the stock market.
A stable coin is cryptocurrencies holding stable values. Real-world assets such as fiat (e.g., USD, EUR, CNY, JPY) or gold and oil usually back them. Consequently, these currencies keep their value stable, unlike BTC, which is highly volatile. Stable coins function as a bridge between the world of crypto and the world of fiat currencies or tangible assets. As a result, there is a merger between the digital currency and a tangible asset like gold.
Novem Gold aims to make the dream of digital gold come true by merging gold and blockchain. We believe that disrupting the trillion-dollar gold industry using blockchain is possible. Novem Gold tokenizes gold and offers an effective ecosystem of secure gold trading. We want to revolutionize the way investors buy, store, and sell gold across the globe in the most fundamental way.
Novem’s gold-backed coins (NNN 999.9) function on NEO’s blockchain. They enable investors to have secure storage of their physical gold and access it easily. From over 50 existing gold-backed coins, NNN definitely stands out since it’s fully redeemable with physical gold, and Novem Gold’s gold storage is one of the most secure worldwide.