If you’re looking for a sold investment that will offer stable gains over a long period then look no further then gold. If you’re looking for an investment that could deliver you serious short- and long-term profits then you might want to look at cryptocurrencies.
The average man on the street is excited but often a little nervous when it comes to investing the family silver in digital currencies such as Bitcoin, Ripple or Ethereum – and who could blame them? The wild price swings and almost impossible price predictions mean that most people you know will only ever want to put a few hundred dollars into their crypto portfolio.
However, traders see it differently; wild fluctuations in price and major volatility give bankers great opportunity to make money – an opportunity that gold and even Wall Street can’t offer. Remember, bankers make money in bull and bear markets, so they are more than happy to bet on a rise or fall of any asset, including Bitcoin.
Volatility aside, there are many reasons to be nervous when it comes to long-term price predictions for digital currencies such as Bitcoin, and one very simple one is regulation. It’s often said that Bitcoin and its underlying technology of blockchain is digital currency 1.0. It may have been first but it may not be the best or the biggest crypto in the future.
For a start, it would seem naive to believe that governments and banks would allow a decentralised and unregulated currency to ever become mainstream and used in daily life. The idea that the UK, US or Chinese government would allow people to move money without paying tax and without any information in how that wealth has been acquired is pretty unrealistic.
It’s been said by many early adopters that Bitcoin is the new gold. You don’t pay for bread using gold bars, and you probably won’t ever pay for bread using Bitcoin. Bitcoin, like gold is a store of value; in the future, Bitcoin may be the asset to which newer cryptocurrencies’ price is determined. Who knows?
With all this in mind, the UK’s Royal Mint, the institution responsible for producing all the physical money in the United Kingdom, has today launched its own gold-backed, Blockchain-based cryptocurrency called RMG, a project first announced by the Royal Mint back in 2016. The Royal Mint Gold (RMG), is a digital representation of the gold stored in The Royal Mint vault, so, unlike Bitcoin, it is backed by something that has been regarded as valuable for thousands of years.
Tom Coghill, commercial lead for RMG, stated in an interview that one RMG coin is equal to one gram of gold, adding that “it’s real gold you’re holding when you’re holding our RMG”.
David Janczewski, director of new business at The Royal Mint, had previously explained the benefits of moving the value of gold onto a digital currency.
“Distributed ledger technology is a game changer and supplying gold on a Blockchain has been on our minds for some time,” he said in a recent interview.
It’s fair to suggest that Bitcoin investments are more uncertain than investments in cryptocurrencies. As a result, the RMG coin should sit more comfortably with your parents.