New Gold-Backed Cryptocurrency Introduced
OZcoinGold is the self-proclaimed first next-gen cryptocurrency backed by 100,000 ounces of 100 percent 24 karat gold. Currently, that amount of gold is valued at roughly $123 million. OZcoinGold, which is associated with an Australian publicly-listed and regulated goldmine, launches on March 10, 2017, at the South by Southwest (SXSW) Conference in Austin, Texas. The Company expects to reshape financial and cryptocurrency markets with a limited-issue gold-backed cryptocurrency.
"Conventional cryptocurrencies like Bitcoin experience significant market volatility and other technology, investment and commercial disadvantages. OZcoinGold is our response to these disadvantages," said OZcoinGold President Ira Carlin.
The OZcoinGold cryptocurrency, which is built on the Ethereum blockchain, is available for trade on exchanges and the open markets like other cryptocurrencies, or can be held as an investment, that fluctuates with the price of gold and other 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 founder and CTO Johannes Breytenbach.
As Carlin explained:
"As an example Bitcoin has no asset backing and is trading more than the price of gold (6Mar2017). 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."
Every 100 OZcoinGold coins will be backed by 1/3 of an ounce of gold bullion stored in Australia’s Perth mint and 2/3 of an ounce of secured gold reserves. Verification of the gold certificates and security guarantees are uploaded to the blockchain, audited every 90 days, and the records are available on the OZcoinGold website.
"A further benefit of OZcoinGold is its post March 1st, 2022 capacity for immediate conversion into 24 karat gold," said Carlin. "The Australian publicly listed and regulated goldmine provided security over 100,000 ounces of its proven reserves to OZcoinGold. With 1/3 of the gold already being stored in the Perth mint, the security agreement ensures the delivery of the remaining 2/3 of gold to the Perth mint in tranches over the next 5 years. After March 1st 2022 all 100,000 ounces of 24 karat gold bullion will be available via certificates from Perth mint. If they so wish, OZcoinGold owners may redeem their Perth mint gold certificates and present them to gold bullion dealers world-wide for their 24 karat gold."