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RE: Beyond SBD: A Stablecoin for the World.
There are already other gold backed crypto tokens, such as DGX by DigixDAO on Etherem, as well as , KaratGold, and others. I'm not sure how this one will be any different other than it's on Stellar. Not a bad thing, but overall, the thing about gold backed, or any commodity backed crypto, you have to be able to prove that you have the asset that backs the token. The cool thing about crypto, is you do not need a physical asset to back it for it to have value. I hold some DGX, and it's good that it's held its value in the bear market lately, so I'll watch this one, but overall, I just don't see the difference in backing by gold versus backing by USD, or any other fiat. They all have risk because the peg requires trust.
This is not just tokenized gold.
It's a monetary system. The coins emitted will be spendable in the real world and ABX/Kinesis has already made merchant partnerships to make sure it is spendable across a wide array of PoS systems. These coins will have use beyond holding in a bear market. I will detail the differences in a future post.
The difference between fiat-backed and gold-backed is that fiat devalues constantly while gold beats inflation in the long-term. Other differences include limited supply. I will cover this as-well.