Golden Currency ” Global Private Currency Backed By Gold “
Golden currency is not exactly like most cryptocurrencies. No, it’s a little different. It is the first fully functional private currency that functions through modern technologies such as Blockchain.
Yes, like other cryptocurrencies, it is decentralized. That means, it is independent or government and any other form of political or economic situation of any country. However, there are other things that distinguishes it from cryptocurrencies.
There is a cash (paper) and non-cash form
It is 100 percent backed by gold
Now that you have a basic idea of what we are talking about, you have to be wondering what golden currency really means. So, let’s start with the basic question;
WHAT IS GOLDEN CURRENCY?
According to the whitepaper, Golden Currency is the first fully functional global private currency issuance which offers both cash and non cash and is completely backed by gold. This platform seeks to create and develop an infrastructure for the operation of this new currency which include;
• A global banking network (including banking infrastructure)
• Gold repository
• Crypto-fiat currency exchange
WHAT PROBLEM IS GOLDEN CURRENCY TRYING TO SOLVE?
Most cryptocurrencies were created to address one issue or another, Golden Currency is no different. It was designed to address some of the issues outlined below;
Volatility of Crypto and Fiat Money
Bitcoins and other cryptocurrencies show a high level of volatility. In fact, it can be as much as 30 percent in one day. What this means is that, they do not provide the chance to be effectively use as money i.e. a medium of circulation.
Rather than see them as money in the traditional sense, most users see them as an object of speculative investment which shows high probability of profit in the future.
It’s not just cryptocurrencies that have a problem of high volatility. Most fiat using countries experience a high inflation rate which has led to a rapid depreciation of their national currency. It is not just the developing countries that risk inflation. Historically developed countries have experienced a high inflation rate too. For example, the rate of inflation was 12 percent in the United States between 1979 and 1980.
Lack of Asset Based Crypto and Fiat Money
Bitcoins and other altcoins are mainly affected by the ratio of supply and demand. They lack any form of backing. This is one of the reasons some bankers criticize cryptocurrencies. Note that even fiat currencies are not 100 percent backed by assets.
Lack of cash crypto money
Cryptocurrency is a virtual currency. That implies that you do not need some form of cash in paper to make payments. In spite of this fact, 85 percent of all payments in the world still occur through cash. Yes, a cashless society is appealing. However, it is still just as elusive.
Based on this fact, cryptocurrencies, because they exist in electronic form are losing a significant portion of the market. Fortunately, the Golden currency will exist in paper form too.
Now that you know some of the problems Golden Currency is trying to solve, the next question is obvious;
HOW DOES GOLDEN CURRENCY WORK?
As said earlier, Golden Currency is a fully functional currency. However, it offers additional advantages. One of such is that, you can work into an exchange office to legally buy the currency with your national money.
Yes, it’s a lot like fiat like that. Yet, unlike your national money, you know the Golden currency in your wallet is not subject to inflation because it confers a fixed amount of gold. Furthermore, when the exchange value of said gold increases, so does the value of the money. Hence, serving as a good source of passive income.
And if you are interested in having your Golden Currency in electronic format, it is just as easy. These advantages offered by this gold-backed cryptocurrencies makes it more competitive than other fiat and cryptocurrencies. Users can enjoy the benefit of both without the drawbacks.
Since Golden currency will exist in different modes of payment, users will have access to a range of possible money transaction which include;
• Electronic Payment
• Wire Transfer
Also, each Golden is expected to be backed by approximately 0.02 gram of gold, that’s an initial equivalence of at least 1 USD. The details of the gold backing and denominations will be released before the initial issuance.
The main stage of the Initial Coin Offering is expected to take place between September 1, 2018 and October 15, 2018. Before that is the Pre-ICO stage where buyers can enjoy various bonuses. An ICO Golden Currency Token (IGCT), whose value is an equivalent of 1 USD, will be issued within the Initial Coin Offering.
The soft cap for the event will be 10 Million USD while the hard cap is expected to be 250 Million USD. The total amount of token that’ll be used for the Pre-ICO is 7,600,000. Without additional issuance, a limited 250,000,000 tokens will be provided for the ICO. Any unsold token during the Pre-ICO and ICO will be burnt.
The purpose of the ICO is to raise fund for the issuance of the Golden Currency. It’ll also be used for the establishment of necessary infrastructure for its use and development. As such, the fund raised during the ICO will be distributed thus;
DISTRIBUTION OF FUNDS
The distribution of funds differs based on the amount raised during the ICO. If the amount collected is from 10 Million to 100 Million USD, here is how the fund will be distributed.
The largest percentage of the fund, that’s 35 percent, will be used for the Initial Golden Currency issuance and gold purchases and 30 percent will be used for the establishment of Golden Bank network.
Technological development, which include Golden Exchange and operational expense, will receive 15 percent of the fund. Ten percent of the fund will be retained as founder’s reward and 7 percent will go to marketing. Finally, 3 percent of the fund will be allocated to advisors and as staff reward.
However, if the fund received from the ICO is between 100 Million USD and 200 Million USD, it will be distributed thus;
Forty-two percent of the total fund will be used for the Initial Golden Currency issuance and gold purchases and 30 percent will be used for the establishment of Golden Bank network.
Technological development, which include Golden Exchange and operational expense, will receive 10 percent of the fund. Ten percent of the fund will still be retained as founder’s reward and 5 percent will go to marketing. Finally, 3 percent of the fund will be allocated to advisors and as staff reward.
ANN Thread: https://bitcointalk.org/index.php?topic=3217315.0
Bitcointalk URL: https://bitcointalk.org/index.php?action=profile;u=1943421