What is GoldMint (MNTP) Crypto Beginner’s Guide
There was once a time in economics when currencies were back by actual gold. This was what was called the “gold standard” and made the value of gold skyrocket. Despite many fiat currencies abandoning this standard, some nations still attempt to use it as a means to control inflation and exchange rates.
Historically, before the collapse of the former Soviet Union, many citizens were required by law to follow the gold standard when exchanging Soviet rubles into United States dollars. This had its perks and drawbacks. There are many other nations such as Japan, United States, United Kingdom and the various countries of the European Union who also used gold standards.
The main drawback was all foreign currency exchanges were controlled and monitored and were vulnerable to mass gold dumping onto the markets. The perks were that all conversion rates were kept fairly stable on the basis of gold’s value, and it prevented drug trafficking into the various Soviet republics.
But what makes the gold standard so valuable if so many countries fail to reinstate it? The fact of the matter is, when fiat currency is compared to gold, the value of that fiat currency becomes almost worthless due to the sheer amount of inflation. Gold holds more value and can easily stabilize a country’s currency value which thus can help improve a countries overall economic status.
When a currency value is stable it then permits a stable economy to a certain degree. This is why you will see many countries, political parties, and organizations constantly speak of wanting to return to the golden standard.
So how does this relate to cryptocurrency? Isn’t cryptocurrency stable enough with its secure blockchain networks, trustless-based community and decentralized control on cryptocurrencies production?
GoldMint: Going Back to the Original Gold Standard Currency
While cryptocurrency does hold value in the digital world and can convert to fiat currency, it still faces some complications. One such complication is the risk of poor conversion rates and total loss of cryptocurrency due to the devaluation of fiat currency.
The developer team of GoldMint hopes to completely rip cryptocurrency away from fiat currency by having it backed by a gold standard. The only drawback to this project is since gold is a stable method it will not give much profit to potential investors.
This would make cryptocurrency, in essence, hold more value than fiat currency thus making it a reliable tool for conducting secure financial transactions. This would also allow cryptocurrency to avoid inflation to a certain degree.
How Does GoldMint Work?
GoldMint works by utilizing two major altcoins. One is the GoldMint coin, which will be backed by gold and run on Ethereum. This cryptocurrency is intended to be used for peer to peer transaction, buying and selling of goods and services, and investment purposes.
The second altcoin is a utility token called Mint (MNT). This will be an Ethereum-based coin that is used for conducting smart contracts, operations, block creation and transaction confirmations, and so on. All who take part in owning Mint tokens get a 75 percent commission from all processed Gold transactions.
The benefits of using a golden standard for cryptocurrency are enumerable and definitely open doors for a better financial system. This is definitely a cryptocurrency worth watching and investing in.