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A Growing List of Gold-Backed Cryptocurrencies

3 min read
Gold-Backed Cryptocurrency

Will 2021 Be The Year For Gold Backed Tokens?

It’s no secret that NFTs are one of the hottest segments of the cryptocurrency marketplace of late. While NFTs are all the craze right now, a growing number of investors are turning their attention towards what might become the next hot segment of the crypto market: cryptocurrencies backed by gold.

While gold-backed tokens have received precious little fanfare from the mainstream financial media, the truth is there are dozens of gold-backed cryptos currently in existence. Asia Broadband’s AABB Token is the most recent addition to a sizeable – and growing – list of gold-backed cryptocurrencies.

With inflation poised to increase this year, it would seem to be only a matter of time before gold-backed cryptos take center stage in the mind of crypto investors worldwide.

The following tokens are stated to be 100% backed by physical gold:

The following tokens are only partially backed by gold:

Asset-Backed Cryptocurrencies

An asset-backed Cryptocurrency is a type of Cryptocurrency that is backed up by – and exchangeable for – an asset. This asset can be in the form of currency, such as the US dollar, or a stock, or even a warehouse.

Cryptocurrenices backed by assets are able to provide both asset value and safety to investors. Because these cryptos are backed up by physical things, they are often times used as guarantees for loans.

This type of investment is very attractive to both individual investors and larger companies. Because the value of an asset does not decrease over time, it is a good way for businesses to hedge their exposure to inflation. For a company, it gives them the ability to attract and retain high quality employees by offering them the ability to purchase assets. Finally, for individual investors, it allows them to purchase their favorite Cryptocurrency without having to worry about losing all of their initial investment.

Gold Backed Tokens

If you have been following the development of cryptocurrencies, you will notice that there are now gold backed tokens. These are also called gold-backed coins or cryptos. The fact is, you can invest in gold without having to actually carry any physical metal. This could be a very big advantage, especially if you want to be mobile. However, keep in mind that even though the market has gold backed tokens, they are still not the real thing and should be treated as such. They are merely a claim on the actual, physical metal.

Gold Backed Crypto