The Future of Cryptocurrency Mining

Crypto currencies have taken the world by storm. Especially Bitcoin, which saw a rapid increase in its valuation since the last few months and has got hooked several major industrial players as well as governments to it. Besides, others such as Litecoin, Ethereum and others are following its lead. This has created a crypto currency boom where people are seeing a positive feedback being given to major cryptocurrencies as they keep getting further acceptance by the global commercial fraternity. Japan even passed a law earlier this year to legalize the Bitcoin.

Cryptocurrencies are backed by the ‘mining’ process where crypto ‘miners’ invest time in solving mathematical, algorithmic problems that eat up a lot of power, hardware that runs 24x7 and other costs that go into helping create an individual coin. However, there are some issues with this process.

1.How Secure are these Cryptocurrencies.

First, what if a team of sophisticated hackers infiltrates malware into the Blockchain system that infects all the computers that are a part of the system. This can damage the value of the Blockchain on several levels. It can deflate or inflate the value of that cryptocurrency, or it may even destroy all the records.

While it the data on who wields how many coins may be recovered, such a threat may create discrepancies about the value of the said cryptocurrency.

Although we would do appreciate that all the cryptocurrencies have a robust science and tech to back them up, having something like gold to back up a currency is being on the safe side. Let us take the example of fiat currencies. Currencies that were valued by the US dollar were subject to its ups and downs. This emphasizes the need for having a robust system to back up for any monetary system.

2.Top Reasons to Trust Plus Gold Union Coin.

As said earlier, dependable currencies are backed up by gold, which is the one and only system of backing up currencies today. However, there is a good reason why we trust gold so much. And that’s where the answer lies, TRUST.

Let us delve into the history of gold. Throughout the ages, gold has always been considered as a precious metal that was never used generously like iron or copper in the making of tools and implements. The form and rarity of gold rendered it as a metal of the elites, a metal of luxury that is used in ornaments and jewellery.

3.How Well Does Cryptocurrency Technology Gel With A Robust Gold Backing?

So comes the question, how does being backed by gold exactly provide a cryptocurrency with a robust backing? Fiat currencies that were previously backed by gold until Uncle Sam took over show us how stable they can be, even during times of volatility. Even America’s own Federal Reserve used to hold a gold standard before it went all bad in the early 1970s.

4.Less Price Volatility:

Price volatility puts a currency, and it’s stakeholders at a lot of risks from time to time. Especially during unpredictable times such as wars, disasters or when market bubbles are burst, currencies tend to fall in value. Gold, on the other hand, does change its value according to the times, but on a greater level, gold’s value keeps growing at steady rate. This is what makes the difference. When you back up your currency with something like US dollar, it’s going to slump. Gold, on the other hand, keeps a currency stable.

5.High Liquidity:

Cryptocurrencies backed by gold can also be redeemed as they can be converted into gold, having been backed up by it. Cryptocurrencies that are gold backed have a physical equivalent which the owner can decide to store in banks or his safe in the prospect of a digital uncertainty. Similarly, a cryptocurrency backed by gold can also be paid in gold for transactions that are high in volume.

6.Scarcity Builds Real Value:

A scarce source code, coupled with the intrinsic value of gold creates an even rare value for this cryptocurrency. Therefore, there is an assurance that the number of ‘coins’ in this cryptocurrency is always going to be limited and hence cannot be subjected to manipulations and inflation, thus keeping it ‘real.’

Any cryptocurrency that is backed by gold is the best when it comes to funding businesses and start-ups. Many cryptocurrency enthusiasts fail to understand that a cryptocurrency can fall as fast as it rises through the months. Therefore, when a start-up receives a backing from any cryptocurrency, there is always the possibility of having to fall back on lower exchange rates, thus face a slow funding.

However, when your cryptocurrency of choice is backed by gold, you can be sure that there is going to be a steady flow of funding.

Explore Opportunity Now.!!

Author at www.goldunioncoins.com