Anyone who knows anything about cryptocurrency will tell you that it is extremely volatile in value. You do not have to be an expert or even really involved in the space to see that the prices have been on a rollercoaster ride from the start.
Many investors and especially those who are heavily in favor of mass adoption and the everyday use of cryptocurrency want to see this volatility dissipate and citizens of countries facing financial crisis and inflation are desperate for cryptocurrency to stabilize and help them rebuild their respective economies.
Countries like Venezuela and Turkey are examples of places where the national currency is heavily sinking are in a need of stable ways to store their savings and purchase goods and services they need on a daily basis.
Gold has always been a pillar of stability for investors. In times of economic recession, gold is relied upon to be a steady and secure store of value, but it is also not best used as a currency because it is does not have the level of liquidity that a currency that the dollar has and is often traded for different values on the street from commodities dealers.
A gold backed stable coin could be the exact formula for stability that is so desperately needed in many countries around the world. Gold can act as the stabilizing force behind the new blockchain technology that will allow cryptocurrencies to provide the urgently needed stability to go along with its important use cases and abilities.
In the UK, The Royal Mint jumped into the crypto game when they decided to issue a gold backed cryptocurrency called RMG. Gold is an obvious link to taking volatility out of the equation, but startups are experimenting with other precious metal backed cryptocurrencies as well and the movement is spreading to the point where we are witnessing the tokenization of all kinds of precious natural resources.
The Swiss company Open Mineral announced their plans to develop a blockchain system for trading minerals, and they believe it will simplify their entire process. Precious metals and other valuable natural resources can engage in a symbiotic relationship with the cryptocurrency sector and they provide each other with their respective benefits.
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