Gold bugs are launching a gold-backed Bitcoin... again
Yet another cryptocurrency altcoin may be coming to market, HayekCoin, and this one is backed by gold. Anthem Vault, a Las Vegas based precious metals company, will be launching the Bitcoin-like on May 25th, and each HayekCoin will be backed by 1 gram of gold at market price.
The idea is that gold would act as a hedge against Bitcoin’s* volatility, notoriously declared the worst investment of 2014. While gold has been volatile, it hasn’t been as unstable as Bitcoin which rocketed up to $1,200 before crashing to $250. This launch comes after the initial run of a prototype altcoin known as “INNCoin” back in July 2014.
The Bitcoin community on reddit is already skeptical. The centrality and opacity of HayekCoin has many scoffing as they value the decentralization of the current Bitcoin network. HayekCoin will also face competition almost immediately with the launch of BitGold, a Canadian digital currency startup that has successfully closed a $3.5m Series A with a similar premise that says they also offer a BitGold MasterCard.
(*Bitcoin is an online payment system and digital currency invented by pseudonymous programmer Satoshi Nakamoto. Proponents claim its the future even though it's just a fringe currency with little transaction volume, it requires a huge distributed "supercomputer" to operate, used primarily by criminals, and is intensely hostile to the consumer and merchant alike.)