Cryptocurrency has taken the investment world by storm. With blockchain technology promising to make international business so much more efficient, investors, from small individuals to giant institutions, are clambering for a piece of the crypto pie. The demand has been insatiable, leading many would be crypto investors wondering if they have arrived at the party too late.
For wise investors willing to mine the initial coin offerings (ICOs) for the ones with outstanding concepts, the party has just begun. The bitcoin billionaires seen on the news made their money by investing in bitcoin before it became a household name. They saw its revolutionary potential and they bought in early. In just a few short years, they enjoyed one of the steepest price run ups in history. Investors looking for a cryptocurrency with the potential for bitcoin level appreciation need to look at Karatgold Coin.
Karatbars International launched Karatgold Coin through an ICO in March 2018. With the coin still new to the marketplace, current investors are getting in on the ground floor of something special. The coin is the first ever cryptocurrency backed by gold. The coin’s developer, Karatbars International, backs the coin by making it exchangeable for gold. This way, holders of Karatgold Coin know that the price of their Karatgold Coin remains pegged to gold, which provides stability by ensuring users of the coin that their investments always remains valuable.
Karatgold Coin: Why a gold backed cryptocurrency makes sense
The trouble with many ICOs has been that they are backed by nothing except an idea. This makes them risky speculative investments, like the old-style pink-sheet stocks sold over the counter. Too small for listing on the stock exchange, pink-sheet stocks were sold over the counter literally using pink sheets. Most of these stocks failed quickly, leaving the investors with little or nothing of their initial investments.
Many ICOs will go the same way as pink-sheet stocks. They simply lack the fundamentals needed for long-term growth and success. Investing in many of these ICOs is equivalent to speculating in penny stocks.
Karatgold Coin breaks that mold by design. Its gold backing not only provides security, it also makes the coin useful as a store of value and a medium of exchange. Bitcoin, despite its appeal and incredible valuation, remains a poor store of value and medium of exchange. The price fluctuations that make it so attractive as a speculative interest also destroy any possibility of using it for an exchange of goods and services. Both the buyer and seller would be subject to so much currency risk that either could lose a great deal of money on any one deal, just from the volatility of bitcoin.
By pegging Karatgold Coin to gold, the problem of volatility is solved. Gold serves as one of the most stable stores of value on earth. In the days of the gold standard, before fiat currencies came to rule the financial markets, gold provided the stability that made people believe in the value of currencies. Much of the demand for cryptocurrency has come from a mistrust of fiat currency.
Karatgold Coin brings back the gold standard, providing cryptocurrency investors with the word’s first cryptocurrency backed by gold. Now, cryptocurrency holders can feel secure in a store of value through the purchase of Karatgold Coin. As the coin gains in popularity, appreciation will also benefit holders of Karatgold Coin. Backed by gold, demand for the currency as a medium of exchange will grow, driving its value upwards.