4u Created
Image default

What is a gold-backed token and how does it work? By Cointelegraph

What is a gold-backed token and how does it work?

A gold-backed cryptocurrency is a type of digital currency that is backed by physical gold. The currency’s value is based on the current market price of gold and can be used for transactions just like any other type of cryptocurrency.

Some cryptocurrencies are backed by gold in order to tie the derivative asset (crypto) to a tangible asset (gold), thereby preventing excessive fluctuations in price. Thus, gold-backed cryptocurrency is often more stable than other digital currencies. This is because the price of gold is generally less volatile than the prices of other assets, such as stocks or cryptocurrencies.

Continue Reading on Coin Telegraph

Source link

Related posts

Biden flubs bike dismount, falls, but uninjured By Reuters

Sylvia Franklin

Biden administration denies Cheniere’s request to sidestep LNG pollution rule By Reuters

Sylvia Franklin

Hotel Stocks Upgraded by Berenberg on ‘Accelerating Recovery’ By Investing.com

Sylvia Franklin