Bitcoin has had a bumpy ride this year. In March, during the height of coronavirus fears, a market panic and crash led to a dramatic drop in its value to $4644 per coin. Since then, it gained 275% in its price, and bumped up 8% higher after news broke that PayPal would begin accepting Bitcoin. It is now trading above $12,000 per coin as of this writing – its highest price since June 2019.
The last time Bitcoin held onto a price above $12,500 for an extended run was in 2017. It reached close to $20,000 per coin during a crypto bubble and then crashed hard in 2018. While this current bull run seems to display a less volatile upward climb, one can’t help but wonder when gravity will once again bring the price crashing back down again.
One can argue that these ups and downs are part of the natural cycle of markets. And that, even with temporarily downward moves, there is still an overall upward trend long term. That may be true, and fine for investors with a long-term horizon. What about those who need to access their money sooner?
While there is an element of risk in any venture, one can take steps to manage risk while pursuing financial gain. With much respect to Bitcoin and its journey, it is a cryptocurrency that isn’t backed by any tangible asset and is fueled purely by speculation. It is known for its massive volatility, sending its coin holders on dizzying rollercoaster rides as its value skyrockets and plummets capriciously.
It was this desire – to develop a crypto coin that is gold-backed, and which provides a sense of stability – that led to the launch of META 1 Coin. There is a reason why governments and civilizations used gold-backed currency for millennia. Regardless the circumstances – whether governments were stable or not – the gold that backed traded currencies served as a form of immovable value that reinforced public confidence.
Even if people’s faith in governments or markets faltered, they knew that the paper and coins they traded served as tokens in place of gold reserves that could be accessed if needed. The rarity of this precious metal has withstood the test of time that outlasted mighty empires of the ancient world to this modern day.
That’s why we chose gold as the asset backing of choice for META 1 Coin. It bolsters trust and increases stability in the coin that serves as a digital token representing verified gold assets. The Smart Contracts that are part of the META 1 Coin framework ensure that third parties validate all assets and there is a built-in algorithm that facilitates an upward trend in value.
While there is no way to completely eliminate risk, one can take steps to manage it while pursuing financial gain. Rather than investing in purely speculative coins, one can buy gold-backed META 1 Coin and appreciate the greater potential for stability that it offers.