AUSTIN, Texas – As governments worldwide continue to show signs that they want a cashless society, and, like Cyprus, are willing to take their citizens’ money without permission through electronic means, self-reliant families wonder if there are ways to protect their earnings without giving up control to the government.
In that line of thinking, some families are examining the benefits of cryptocurrency – digital money that supposedly is not held or controlled by any government or nation.
Of course, the digital nature of currencies like Bitcoin leads to many doubts about whether it is even real, much less an independent source of money that is untouchable by lecherous governments. A much more interesting question these days is how do independent entities that are non-government run or backed create a valuation for a completely digital currency? And how do you actually buy the “coins” and buy stuff with the “coins”?
Consider the short videos below as introductions to cryptocurrency.
How Cryptocurrency Works?
Despite the video above that makes the most popular version of cryptocurrency – Bitcoin – seem more like a game, it is real. And here’s what some on Wall Street think:
Follow The Yellow Brick Road
Now that the currency seems to have some legitimacy, at least until the North Koreans hack the systems, do self-reliant families really want to trust their earnings to an all electronic system?
Enter OZcoinGold, the company that claims to have the world’s first 100 percent cryptocurrency backed with gold – 100,000 ounces of 24 karat gold, to be exact.
“OZcoinGold offers the security of a commodity such as gold and the increased investment return potential of forces like market premium,” Ira Carlin, OZcoinGold president, said. “As an example Bitcoin has no asset backing and is trading more than the price of gold. Thus Bitcoin’s value is totally market premium. The fixed number of OZcoinGold units (linked to and backed by 100,000 ounces of 24 karat gold) prevents the production of more OZcoinGold coins. This means that unlike fiat currencies and cryptocurrencies, OZcoinGold cannot be devalued by the production of more coins.”
Currently 100,000 ounces of gold is valued in excess of $123 million.
The new cryptocurrency was announced in March at the South by Southwest Conference and Festivals in Austin, Texas. The company expects its limited-issue next-gen cryptocurrency to reshape financial markets and cryptocurrency models alike.
Initially each 100 coins is backed by 1/3 of an ounce of gold bullion stored in Australia’s Perth mint (in continuous business since 1899) and 2/3 of an ounce of secured gold reserves. The verification of the gold certificates and security guarantees are uploaded to the blockchain and audited every 90 days and can be viewed at www.ozgld.com.
The company allows investors to trade OZcoinGold coins on the open market and exchanges, like other cryptocurrencies, or to hold onto their investment while seeking capital gains on both the increase in gold value and the market premium driving factors. “All of Bitcoin’s value is driven by market premium. OZcoinGold benefits from both market premium and gold value increases,” said Johannes Breytenbach, founder and chief technology officer.
OZcoinGold claims to offer its users complete privacy. This means coin distribution and transactions on the blockchain are anonymous. Unlike conventional banking, accounts can “never” be frozen by external third parties like banks or government entities attempting to exact financial retribution. Most importantly, many of the costs associated with conventional payment methods including banking fees, currency conversion fees and international transaction fees are eliminated.
Unlike most cryptocurrencies, this company’s products can be purchased directly from the website via the OZcoinGold wallet as well as from select cryptocurrency exchanges.
The Man Behind the Curtain
Investments of all kinds need to be researched extensively, especially when it comes to new and untested types of investments like cryptocurrencies. At least this new currency has a backing most people believe in – gold – instead of the mythical/paper backing of the stock market like Bitcoin. However, with new entities that involve cash and investments, let’s hope the “Oz” refers to the Australian origins of this company (Aussies, sometimes pronounced as Ozzies) and not a charlatan “behind the curtain” pulling strings.
(Editor’s Note: By no means is Paratus Business News endorsing this or any cryptocurrency. We simply know that many readers are interested in these developments and may be investors themselves. This article is purely for information purposes only.)