Been waiting on coins to come out backed by gold, I see some real issues with this as typically institutions that back their currency with gold often "HAVE" gold on hand. I highly doubt this group will be able to sustain the gold on hand to match the currency output from it's blockchain. I also am not 100% certain i want my crypto tied to the price of gold which is much more conservative. Either way, interesting article
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@brutalboris thanks for the reply. Can you explain me what do you mean with "gold on hand"?
Xaurum is not 100% tied to the price of gold, because it has a growing gold base. What does this mean? For example if you have bought 1 coin excatly 1 year ago, you would pay for it 0,05$ and in this price you would get 0,01 $ of gold. Today each coin has 0,06$ of gold behind and the market price is between 0,22$ and 0,3$. This basically means that the price of coin can't fall under 0,06$, because the gold is backing this price. So once the gold exceeds your investment you basically can't lose any more, you can only make additional profits.
How is this possible is explained in detailes here www.xaurumfundation.com :)
"because the gold is backing this price" means that they are backing the value with Gold they have. Backing the value of the coin to just the "value" of gold is pretty much useless honestly. And if you are suggesting gold quantities will continue to grow, that is true to a very minimal extent. There is a limited amount of gold to be found on earth, and as the population grows there will be less to go around per person.
Kinda makes sense but kinda doesn't as well. Either way, interesting approach and I will keep an eye on it.
Who am I?
BORIS!
The price of 1 Xaurum consists of approximately 20% of gold and 80% supply and demand from the market. Currently all Xaurum coins are backed with just 129kg of gold, so they are still in the very beggining. Every kg of gold that is being added is pushing the price of Xaurum coin up. And this is the real beuty of this coin, because it has a real and constantly growing value. Currently Xaurum is arround 80th position on coinmarketcap and with a very big potential, so it is a good idea to keep an eye on it :)
The problem you are not getting is when you say "backed by" you literally mean they have gold stored away, and they do not. You can not "back" a currency by something you do not own... sorry, but I'm afraid you are not understanding.
Who am I?
BORIS!
How do you mean they do not own?
Of course they do. The gold is from Nadir, one of the biggest raffinery of gold in the world (if not the biggest) and it is stored in Loomis (the biggest company in the world which stores gold). And if Xaurum holder wants to receive the gold in his/hers hand, he/she can get it. See the pictures :)