GoldCoin Review: Why Invest in Gold-backed Cryptocurrency

UTC by staff writer · 4 min read
GoldCoin Review: Why Invest in Gold-backed Cryptocurrency
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GoldCoin is the first fractionalized gold-backed asset that is available for purchase directly with a national currency. 

The concept of ‘digital gold’ is not new. In the 1990s, E-Gold emerged as the world’s first virtual currency backed by physical gold. Millions took advantage of the service at its peak before E-Gold eventually shut down.

Today, there is a wide range of cryptocurrency projects looking to capitalize on a digital gold rush by issuing gold-backed coins. Many wonder why they should invest in a gold-backed cryptocurrency when there is an array of alternative coins in the virtual currency world.

Well, gold-backed cryptos like are attractive for a few reasons.

Gold has long been seen as a legitimate and trusted store of value. Coins backed by a physical product like gold can serve as a stable investment that remains unaffected by volatility in the cryptocurrency world and across traditional fiat markets.

Even if the gold-backed cryptocurrency starts to decline in price, it will never dip below the spot value of gold. There is even a chance popular coins could eclipse the spot price of the gold underpinning them.

The world of gold-backed cryptocurrencies continues to evolve as many stablecoin projects develop and mature.

GoldCoin is an ERC-20 gold-backed cryptocurrency built on Ethereum. Keep reading to understand more about the cryptocurrency and understand the features and strengths of GoldCoin.

GoldCoin: Letting Users Store and Control Gold

According to the project’s litepaper, the GoldCoin team launched in 2010 due to “civilization’s intimate connection with the precious metal [gold], seeing it serve as a store of value, fully-functional currency and the most coveted asset to last throughout the centuries by all cultures of this planet.”

The team believes investors have the “best of both worlds” with GoldCoin – access to 99.9% physical gold with the ability to use the precious metal as a functional currency. Each GoldCoin is worth 1/1000 of an ounce of gold that is fully redeemable for the physical product.


Security and accountability for gold-backed cryptocurrencies are of utmost importance. Coins not backed by a proper amount of physical bullion lead to massive consumer distrust and potentially make the cryptocurrency worthless once news gets out there are no reserves.

GoldCoin provides a wide range of information about security on its website, linking to an audit report of physical gold holdings carried out by GDA Capital. A 24/7 live stream of the vault is available on the website.

GDA Capital (Global Digital Assets) is a well-known financial institution that has provided merchant banking services to a range of Fortune 500 companies, governments, and cryptocurrency projects. Audits by organizations with a great reputation, like GDA Capital, are a strong positive for gold-backed cryptocurrency projects.

GoldCoin also makes the process of physical gold redemption explicitly clear on its website. In contrast, some projects make it difficult for holders to understand how they can secure and redeem physical gold.


GoldCoin is based on Ethereum, a stable and popular platform for building cryptocurrencies.

The project’s website clearly states and allows for easy Etherscan viewing of GoldCoin’s smart contract address, along with a recommended Gas Limit and information about Ethereum compatible wallets. Transparency with technological information benefits any cryptocurrency project as users reassured about stability are often more apt to invest in a particular coin.


Roadmaps and a future vision are an important element of a cryptocurrency project. Teams with no goals or desire to innovate run the risk of watching their project stagnate or even collapse, potentially leaving investors with worthless assets.

The GoldCoin team clearly lay out a development plan through Q2 2021. Plans across 2020 are achievable amid the uncertainty with COVID-19, emphasizing expanding the influence and notoriety of the coin.

Attracting new investors and attention is a good sign for the lasting success of a project, especially as people change spending and investing patterns in light of financial turbulence in 2020.

Plans to add GoldCoin to in 2021 and expand the ability to purchase the cryptocurrency is a positive sign for the coin’s future viability.

Roadmaps from Q4 2019 to present have been achieved on time. This inspires confidence in the current team’s ability to make realistic plans and properly stick to deadlines.

Future of GoldCoin

GoldCoin is the first fractionalized gold-backed asset that is available for purchase directly with a national currency.

This feature, combined with the project’s clear roadmap, attention to security, and strong technological foundation, appears to give GoldCoin a strong future in the gold-backed cryptocurrency world.

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