Gold Backed Coin (GBC) is the world’s first virtual currency fully backed by gold – and it could change the way we think about virtual money.
A relatively short period of time ago, the term cryptocurrency did not mean anything to most people. But this has changed since a virtual something named Bitcoin has entered the scene, managing to catch the eye of the public and to inspire investors and developers all over the world.
Currently, the next revolution seems to be already at the doorstep, with the potential to shake up the community and open a new chapter in the history of virtual money. It could be a revolution that distinguishes itself by connecting the virtual world far more closely with the real world than Bitcoin does: “Gold Backed Coin” or GBC is the world’s first virtual currency that is fully backed by physical gold, promising security and opportunity at the same time.
“GBC is a new-level cryptocurrency”, its developers, Chris Glatz and Wolfgang Weinmann, say. While Bitcoin has been thriving and a bunch of copycats came into existence, the question may have arisen where the development of virtual currencies is actually heading. For Mr. Weinmann, the answer is crystal clear: “Virtual currencies have entered the scene as a means to respond to the Financial Crisis and the underlying structural deficiencies. But most of these coins have not offered stability against a drop in value. GBC tackles exactly this problem.” And Mr. Glatz adds that GBC has borrowed from history: “For a long time, gold backing was a successful way to stabilize the monetary systems around the world. In its current stage, virtual money really needs a trustworthy gold backed alternative.”
As its name says, the full gold backing of the coin constitutes a crucial advantage for the investors in GBC. Every Gold Backed Coin is worth one tenth of an ounce of gold. The issuers will build up gold reserves equivalent in value to the coins issued. These reserves, stored in Switzerland, will enable them to give a price guarantee to the holders of GBC. So while the market price of the coin is not limited upwards, there shall be stability downwards, as the appropriate part of the gold reserves will, if necessary, be used to push the market price back above the real, gold backed value of the coin.
Gold Backed Coins can be ordered during book buildings on the website http://www.GBC.is. Prospective buyers hand in their orders by choosing the desired amount of coins and offering a price within a given span. On April 9, the initial book building will open, lasting for thirteen days. The coins are then issued within the Ripple network, an advanced online money transaction system where GBC will be traded against a range of other real and virtual currencies.
The issuers of GBC emphasize that their virtual coin has a very high potential because it emerges into a world where instability has gained ground: “GBC holds an intrinsic value that is stable. It is impossible to drop to zero, as the backed value is there, and the backed value is assured by the equivalent value in gold reserves. Presumably, the market for GBC is excellent.” But Mr. Weinmann and Mr. Glatz have a goal beyond pure financial interest: “We want to push the development of cryptocurrencies forward. The virtual space has become an integral part of life, and in life, security and opportunity are both very important. With a fundamentally strong backing, we can overcome the critical downside most other virtual currencies have. Naturally, that is what endows GBC with a worldwide competitive advantage.”
It seems that a new era has begun in the world of cryptocurrencies. Many investors may turn their attention to this new virtual coin that promises higher security standards in a market renowned so far for its sheer unpredictability.
Interested individuals can find further information on GBC’s website: http://www.GBC.is