Britain’s Mint is trying to make gold act more like bitcoin

Britain’s Mint is trying to make gold act more like bitcoin

Britain’s Royal Mint (RM) is taking a new turn when it comes to gold trade. As bitcoin persists to gain value, RM considers creating a new digital cur

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Britain’s Royal Mint (RM) is taking a new turn when it comes to gold trade. As bitcoin persists to gain value, RM considers creating a new digital currency, Royal Mint Gold. Royal Mint may partner up with CME Group in order to see this enterprise complete.

Britain’s Royal Mint seeks to take advantage of Blockchain, the very technology that allows bitcoin to exist. The idea is to allow the customers to trade gold fragments stored in the Mint’s vaults. The fragments will be digitally presented as Royal Mint Gold tokens, with each RMG equating 1 gram of gold. Thus, reducing the expenses of storage and management. With Blockchain, there will be no need to follow the ownership of gold pieces in trade. The Nakamoto consensus allows Blackchain to be shared among users, and that’s just what the Royal Mint will do.

The connection between gold and bitcoin si very strong. As gold, bitcoin has a limited supply, new altcoins need to dag and then put to the market. The main difference is that bitcoin is open source, anyone can become a bitcoin digger. On the other hand, commodities market is different and controlling it will be a whole other thing. One thing is sure, not gold nor bitcoin come easy. Both resources need recourses.

Trading gold in RMG will have its up sides. The costs of the trade will be lesser, so the charges for gold storage may go down, as they are currently standing at 0.5-1% of average value of the customers’ holdings within the vault.

This situation show us that the Blockchain has its future. Other than bitcoin, this technology has never been commercially used before. This means that by the next year, Royal Mint and CME Group could start the first commercial project using this technology. They plan to put a billion dollars’ worth of gold on Blockchain.

The creator of bitcoin, a man known as Satoshi Nakamoto, says that same as the gold miners are spending resources to add more gold to circulation, so are bitcoin diggers. That makes a great analogy between gold and bitcoin. But it also poses a question: “Could, and for how long, the gold act like bitcoin?”

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