More Physical Gold Moving Into Cryptocurrencies
More Physical Gold Moving Into Cryptocurrencies by Rory – The Daily Coin
We have been reporting on several changes in the digital gold space. It all began with GoldMoney/BitGold almost three years ago. This was one of the first widely accepted and widely used forms of digital gold.
This past February, WeChat, an app that operates in China, had the idea to allow people to move digital gold through their phone for the Chinese New Year celebration. This app allows a person the option of using digital gold to make purchases or send gold as a gift but also allows a person to walk into any bank in China and convert the digits-on-a-screen into physical gold.
With the blockchain technology moving out of the basement and into full view it seems everything is changing. Just this year, 2017, we are seeing the introduction of five (5) different gold backed cryptocurrencies. ZenGold and OneGram, which were the first to be fully capitalized and operating, with three others, Orocrypt, Royal Mint Gold and, now, BullionCoin being under development and should come to market within a few weeks.
Where is all this new gold going to originate? Gold trading at just above $1,250/ounce is not producing a lot of gold from mines and most of the retail gold that comes back to market is not enough to satisfy anything outside of retail demand.
ZenGold states they will have 100 million grams of gold, while OneGramCoin (OGC) states they will offer 12,400,796 “tokens” during the ICO, which began on May 27, 2017. OneGram also states their gold holdings will continually rise through transaction fees generated on each transaction, which, over time could mean the volume of gold rises by 25-50% of their initial holdings. It will be interesting to see how many of the 1.6 billion muslims utilize this form of gold money and the overall effect it will have on the physical gold market.
Orocrypt is only bringing 500,000 tokens, of 1.1 million tokens, to the open market. Royal Mint Gold (RMG) coin states they will have a “limited number of coins” for the ICO, however, that number is currently unknown. RMG is following suit with OneGram and allowing the market to decide how much physical gold is required to back the number of “tokens” that are in the market place.
As many of you already know gold trader and whistleblower, Andrew Maguire, recently made two very high profile predictions regarding the gold market experiencing some type of shake up due to a “sovereign removing 250 tons of gold at one time”. While Andrew missed the original date of his prediction, he is correct in one aspect. BullionCoin (BCX) has plans to make a huge move in the gold market and we should see the effects of this move by the end of August – please do not hold me to any date, as most of us understand these are moving targets and can easily change. The important aspect of all this news is the sheer volume of physical gold that is going to be required to fill these ICO’s and ongoing programs of digital gold cryptocurrencies.
Think about it. These four physical gold backed cryptocurrencies are all coming to market in 2017. China and Russia are already in conversation with blockchain developers to bring to a digital currency to their nations. China has made it very clear they are going to have a gold backed currency. If you’re not holding physical gold, then you may want to reconsider that position. It appears gold is coming back to the monetary system one way or another. If the free market continues making the types of moves it has made in 2017 with these physical gold backed cryptocurrencies, 2018 should be a very interesting year for gold and silver.
Ken Schortgen, The Daily Economist provides a little more color as to what is happening with the new BullionCoin (BCX) along with his exceptional analysis of this past 72 hour news cycle.