Cryptocurrencies have been around for quite some time. It has dominated a huge part of the cyber world. It has even reached real-world transactions, gaining purchasing power on various commodities. However, investors often question its stability. Thus, developers have conceptualised platforms where it is possible to directly link and buy silver with cryptocurrency. Of course, other physical precious metals like gold also comes into play.
What’s all about this Metal Backed Cryptos?
Although cryptocurrencies have amazing properties such as being decentralised, everybody knows that it is very unstable. Its value can rise and drop dramatically in just a blink of an eye, thus many investors see it as a very risky investment. People cannot even be so sure that the value of the top cryptos will remain steadfastly rising without falling back to extremely low values. After all, and no one has precise ideas on when could it happen.
As a solution to this, cryptos with physical counterparts have been developed. This gave way to the idea of backing cryptocurrencies with precious metals such as gold and silver, on such platforms, the value of the cryptocurrency will directly depend on the value of gold and silver on the market; hence, solving some key problems of most virtual coins. This can give the advantage of letting people buy gold and silver with cryptocurrency as well.
Cryptocurrency’s Physical Counterparts
Upon the advancement of metal backed cryptocurrency, the issue of stability has been resolved for good. This has resulted in huge perks to rise one by one.
Stability by Minimizing Inflation of Value
Since metal-backed cryptos’ value rely on physical precious metals, the sudden inflation and deflation of its value were controlled and minimised. Like the gold-backed cryptocurrency, for instance, 1 coin could be equal to the price of 1gm of gold. Needless to say, you can be sure that the value of gold will not fall or rise dramatically in the market, thus the crypto-coin will be the same as well.
Buying Real Precious Metal Using Cryptocurrency
Yes, people can buy precious metal using cryptocurrency. With the direct dependency of metal backed currency’s value to gold, silver and metal, it is safe to say that investors and owners of such cryptocurrencies have their own physical gold, silver, or metal. With this, they can easily buy gold and silver with crypto anytime they want.
Attracting More and More Investors
Now that one of the biggest loopholes of cryptocurrencies has been patched, investors can have an assurance of their investments being fully safe as well. Moreover, the factor of letting investors buy silver with cryptocurrency is quite alluring too. As a result, more and more investors are attracted to invest with metal-backed cryptos, making the capital grow. This means that the company running metal-backed cryptos can sustain itself and its operations.
With metal-backed cryptos, people can easily buy silver with cryptocurrency or have gold and metals for their own. Key is, they should find a reliable platform that could let them invest in such kind of cryptos to avoid frauds and other problems.
This should not be a problem since there are various companies that have started to open to the public regarding metal backed cryptos. For instance, people can use Kinesis to buy gold and silver and have their cryptos as well. For more details, visit at https://kinesis.money/en/