Precious metals dealer Anthem Vault in the United States has just recently announced the launch of its new altcoin dubbed “Independence Coin,” otherwise known as the “INNcoin.” What makes this coin different is that it is the first digital coin entirely backed by physical gold. The founders of the coin are taking their stab are restoring what was stolen by the Nixon administration in the early 70’s. They want to reinstate the use of real money for transactions as opposed to today’s worthless paper currency printed by central banks and governments.
“It should make gold more acceptable as a form of currency by combining its appeal as a store of value and a much more efficient medium of exchange.”
– Anthem Hayek Blanchard, Founder of the INNcoin.
The Gold-Backed Digital Coin
The currency was symbolically launched on the 4th of July, hence the name “Independence coin.” The coins will be backed by 100 grams (3.5 oz.) of gold that is stored at Anthem Vault. This digital coin can be mined for free much like Bitcoins, however, unlike Bitcoins, the INNcoin will be mined for only one year for a maximum total of ten million possible coins. In other words, all possible coins will be in circulation by July 2015. As the total supply is known, each coin will have an intrinsic value backed by 1/100,000th of a gram of gold. To provide you with an example, if someone transferred 100,000 INNcoins to your account, you would receive 1 gram of gold in your Anthem vault account—gold which you could sell at market value and have currency deposited into your bank account.
Anthem Vault also stated that this launch was a promotional offering and that other coins are planning to release a complete suite of digital currencies backed by larger gold and other precious metal reserves by the end of September. It is free to create an Anthem Vault account and users are not required to make a purchase or submit their financial information. Users must create an account, however, as it is the only way to get your hands on an INNCoin wallet to store these new gold-backed digital coins. Moreover, the dedicated wallet includes mining software that makes it easy for everyone to “mine” INNCoins right on their computer.
Right now, the INNcoin is in its early stages as an experimental currency. Nevertheless, this new digital coin could set a precedent on how precious metal bullion can be used to back cryptocurrencies in the future. This could potentially also solve the biggest problem of digital currencies: its store of value. By combining blockchain technology with the world’s oldest form of “real money,” a gold-backed digital currency could become a fully-fledged global commerce solution and asset class that can facilitate the ownership, storage, and transfer of precious metals. It also has the potential, interestingly enough, to bring in a new monetary and financial system from a currently broken one. Instead of a form exchange that is worth less every year because it is printed to oblivion by government and politicians around the world, we could use these types of coins to preserve our sweat and labor for immediate and future use.
If you would like to get started mining Inn coins you can do so here