OzGLD as a Cryptocurrency
One of the benefits that OzGLD as a cryptocurrency shares with other cryptocurrencies like Bitcoin includes “Limited issue”. This Built-in Scarcity supports long term value.
1. Unlike most cryptocurrencies OzGLD are hardwired for scarcity
The source code specifies how many units can ever exist. In this way, OzGLD, as a cryptocurrency, are more like precious metals than fiat currencies. Like precious metals, they may offer inflation protection unavailable to fiat currency users. OzGLD has the 100% backing of 100,000oz of gold, so the “mathematical” and precious metal scarcity guarantees value and stability’.
2. Loosening of Government Currency Monopolies
Cryptocurrencies offer a reliable means of exchange outside the direct control of national banks, such as the U.S. Federal Reserve, the Reserve Bank of India and European Central Bank. This is particularly attractive to people who worry that quantitative easing (central banks’ “printing money” by purchasing government bonds) and other forms of loose monetary policy, such as near-zero inter-bank lending rates, will lead to long-term inflation.
3. Self-Interested, Self-Policing Communities
Mining is a built-in quality control and policing mechanism for cryptocurrencies. Because they’re paid for their efforts, miners have a financial stake in keeping accurate, up-to-date transaction records – thereby securing the integrity of the system and the value of the currency. The added value of the 100,000oz of 24k gold adds tremendous value and price stability to OzGLD.
4. Robust Privacy Protections
Privacy and anonymity were chief concerns for early cryptocurrency proponents, and remain so today.
5. Harder for Governments to Exact Financial Retribution
Governments can easily freeze or seize domestic bank accounts, or reverse transactions made in local currency. That’s not possible with cryptocurrencies, whose decentralized nature effectively prevents state seizure.
6. Generally Cheaper Than Traditional Electronic Transactions
Cryptocurrencies’ security features eliminate the need for a third-party payment processor – such as banks, International wire transfer services, Visa or PayPal – to authenticate and verify every electronic financial transaction.
7. Fewer Barriers and Costs to International Transactions
Cryptocurrencies don’t treat international transactions any differently than domestic transactions. Transactions are either free or come with a nominal transaction fee, no matter where the sender and recipient are located. Direct international money transfers can be very expensive, with fees sometimes exceeding 10% of the transferred amount.
Some of the negatives of other cryptocurrencies that have been eliminated by OzGLD include:
1. Potential for High Price Volatility and Manipulation. OzGLD is coin for coin 100% backed by gold.
This ensures a more stable value and less market fluctuation. It is also based on the world’s largest 3rd generation blockchain environment. This makes manipulation by miners impossible.
2. Cryptocurrencies Can Often Not Be Exchanged for Fiat Currency.
Each 100 OzGLD is backed by 1oz of 24k gold. When you purchase OzGLD it is handled as a forward sale of gold. That means that once the redemption date* is reached, any OzGLD owner can redeem their OzGLDs for the actual 24k gold. They will receive proof of gold from the Gold Storage ficility via OzGLD, which they can then use to redeem the actual gold at Bullion dealers world-wide. This makes OzGLD one of the most widely accepted forms of payment in the world. Gold is the only universal cash.
OzGLD as a Gold Investment Instrument
There are several conventional ways you can invest in gold.
1. Buying the physical metal. This poses a range of problems and costs, including the question where you’re going to store it safely to what third party security and fees are like. Once you have the physical metal, transferring it across borders also becomes a serious regulatory issue. Buying physical gold also incurs quite high transaction fees, particularly for high worth investors trying to put a portion of their portfolio in the metal.
2. OZcoinGold (OzGLD)– Gold backed cryptocurrency:
- The OzGLD release price is set at that of the prevailing gold price.
- There is only one set price, when purchased through www.ozgld.com.
- Transaction fees are lower that any alternative way of purchasing gold and zero fees payable on initial purchase from www.ozgld.com.
- Although the physical gold is stored in an Gold Storage facility, no storage fees, administration or holding costs apply.
- Your ownership of the OZGLD is 100% anonymous and freely transferable over any borders.
- You have no “margin” account at all and should the price of gold drop substantially for whatever reason, you can simply wait the fluctuation out at no cost or risk to you. You cannot receive a margin call on your account.
- Once the redemption date is reached, your OzGLD coins are as good as 24k gold. You can redeem them from anywhere in the world for the actual 24k physical gold.
- In 2014 more gold futures were traded than the total quantity of gold ever mined in history. Futures are nothing more than paper transactions of concepts and ideas, 100% controlled by central organizations and governments. Once you own your OzGLD it is on the blockchain and 100% decentralized. This also means that your own actual gold set aside and secured only for OzGLD and that nobody can get their hands on your gold in any way or form.
The blockchain is the most secure online environment in the world.
Proof of Asset Verification
OZcoinGold coins are minted (issued) via a central OZcoinGold administration account on the blockchain. Every one hundred (100) OzGLD coins represent one (1) ounce of gold of which one third is physically stored in an Gold Storage facility and two thirds are part of the Company’s registered reserves. Proof of Asset for both are as per the Proof of Asset (PoA) process described below.
The Cryptocurrency is one hundred percent (100%) backed by gold and they are redeemable for physical gold after 1 March 2022 (five years from the date that the first OZcoinGold coins are issued). The resource backing the currency consists of two components:
- One third (1/3) of the resource is in the form of 24 karat gold that is stored at a Gold Storage facility with documentation issued by the Gold Storage facility as proof of authenticity. This facility is recognised as one of the most trusted of its kind in the world.
- Two thirds (2/3) of the gold forms part of the Company’s gold reserves and resources. This portion of the resource will be extracted and processed and delivered to the Gold Storage facility in tranches over a period of one to five years from the date of the release of the first OZcoinGold coins. On or after 1 Mar 2022 one hundred percent (100%) of the physical gold can be redeemed with OZcoinGold coins. As Proof of Asset the company has issued a Gold Security to OZcoin Inc. for 100,000 Oz of gold, with the future delivery date of 1 March 2022. As extraction progresses, the 24 karat gold will be delivered to and stored in a Gold Storage facility. Quarterly audits will be conducted to confirm (1) The Gold Storage facility documentation and records are current, and (2) all additional gold has been recorded correctly.
The Proof of Asset (PoA) Verification process records and provides an audit trail of the relevant assets backing the issued OZcoinGold coins. The coins’ authenticity and correct asset value backing are certified using sequential digital signatures from the entities in the chain of custody, namely, the Gold Mine Company, the Gold Storage facility, OZcoin Agent and Independent Auditor, which are further validated with proof of delivery to the Gold Storage facility through the provided issued gold documentation and uploaded onto the blockchain for permanent record.
Delayed Transfer Trigger
When a person registers for their wallet the first time, they can enter a transfer delay time of their choice. This means that whenever any OzGLD is transferred from their wallet for any reason, the coins will be held in a separate “holding” account for the stipulated period, before being released to the recipients account. This gives a coin owner time to notice any irregularities in their account and request an arbitration before the coins can be redeemed or traded by the recipient account owner.
Any OzGLD owner can request arbitration over any unauthorized transactions at any time. This may trigger a freezing of the particular account(s) in question pending investigation by the arbitrators. The OzGLD arbitrators consist of the OZcoin Inc. CTO, the Escrow Agent Principal and the Auditor’s Office Principal. They only have the ability to freeze and unfreeze accounts that have specifically requested arbitration and may in extreme circumstances reverse specific individual transactions. This arbitration process has been designed as an option of last resort.