Everyone in the crypto community has heard Bitcoin’s alternative name of ‘digital gold.’ However, it is worth noting that there are nearly 80 other projects that are active right now, that are backed by actual physical gold.
More and more crypto projects continue to emerge with claims that their assets are backed by physical gold. According to recent data, there are around 77 active projects backed by gold right now, while around 30 others that claimed the same have failed.
Some examples of gold-backed projects that still around include Digixglobal’s DGX, Darico (DEC), the recently-announced Tether Gold (XAUt) Blockstock (BSO), GoldMint (MNTP), GramGold Coin (GGC), AurusGold (AWG), Cash Telex (CTLX), and many others.
Is gold the future of money?
Still, these projects only scratch the surface of the gold-backed altcoins in the crypto industry today, as many others were launched with the same idea in mind, some of which have even managed to fail already. As mentioned, around 30 such projects were launched over the years.
Despite this, many token developers are still not discouraged, and such coins continue to emerge, such as the coins launched by Coinshares, MKS, Blockchain.com, and Tether. Coinshares, headquartered in the UK, supposedly launched a coin backed by $20 million in gold.
Tether, the company behind the controversial stablecoin, USDT, also launched its own Tether Gold (XAUt) only last week, and it already got listed on Bitfinex on January 24th. According to the trading platform, XAUt owners enjoy the benefits of digital and physical assets alike.
The platform claims that this is a way for people to invest in gold without having to worry about issues like limited accessibility or storage costs.
However, some have already questioned projects like these, such as a known crypto supporter, John Paul Koning, who noted that these projects do not charge custody fees, but only redemption and trading fees. Koning wonders whether or not this is sustainable. Some have also questioned whether gold and not Bitcoin might be the future of money once more.
Attempts to pull it off were already made back in 1996 when they failed. Now, with decentralized technology that cryptocurrencies themselves utilize, gold might be getting another chance to take its old place as money in the e-gold form.