A Gold-Backed Cryptocurrency is an issued coin or token that represents gold’s value, for instance, one physical gram of gold equals one digital coin. This gram of this safe-haven asset is kept in a safe and is allowed to be traded with other token holders.
Given that it may be taken as an equivalent of gold, Gold-Backed Cryptocurrency is considered a stablecoin. As this is the case, the coin bears less price volatility compared to Bitcoin or other altcoins.
What is seen as the most popular stablecoin is Tether (USDT) where 1 tether token is backed up by 1 USD. Bitcoin, on the other hand, is described by a number of crypto enthusiasts as the new gold. It had actually become a well-known way of buying gold online.