There are many ‘gold-backed’ tokens out there, and frankly they all sound very similar.
With MINER token however (which is NOT a gold-backed token, for the record) we offer something very different and unique that no-one else is offering…
The Miner Network pledges responsible gold mining practices and a leading crypto-asset – MINER – based on sound socially and environmentally-driven ethics.
The (real) gold we’re talking about is still in the ground, not locked in a bank vault.
What we tokenise is the service of mining that gold for you on demand, when (and if) you redeem your MINER token. Each MINER token represents the averaged value of one minute of labour across all of our mines.
You could almost call it green-backed gold – not US dollar green-backs in this case, but ecologically-sound human and earth-friendly values backing this token all the way…
How’s that for a literal breath of fresh air?
Gold Has Always Been on the A-List for Black Tie Investments
Whether due to its:
historical long-haul (with the first signs of gold mining and gold artefacts discovered over 7000 years ago in the ancient tombs of the Varna Necropolis in Bulgaria),
status-affording rarity, or
more recent starring-role as a key non-corrosive conductor in the manufacturing of electronics (with growing global demand, as more people have a smartphone than a functioning toilet)…
Gold has always been on the A-list for Black Tie investments.
Gold has always been on the A-list for black tie investments
What’s a Gold-Backed Crypto?
Gold-backed cryptocurrencies – tokens and/or coins – are digital assets pegged to gold. (MINER is not a gold-backed crypto – more about that later.)
These tokens allow for increased market opportunities in accessing stable gold investments, but with lower volatility than the general crypto market. They are also built on the scaffolding of blockchain technology.
Gold-backed cryptocurrencies are often referred to as a special kind of stablecoin.
What are Stablecoins?
Stablecoins are tied in the crypto world to the market-agreed value of either one fiat currency like the US dollar, or a ‘basket’ or variety of fiat currencies.
Fiat currencies are commonly referred to as ‘cash’ or ‘money’, printed by central banks and regulated by governments (think dollars and cents).
“Gold-backed cryptocurrenciesare special forms of stablecoins, the value of which are pegged to that of gold. Combining the innovative capabilities of blockchain technology with gold offers a convenient solution to the highly volatile cryptocurrency market.”
A Borderless Version of Gold Investment Powered by Blockchain and the Internet
With gold-backed cryptocurrencies, gold is no longer necessarily tied to a single nation, especially when purchasing digital currencies like the gold-backed yuan, for example.
Instead, gold-backed crypto-tokens represent a reliable and borderless version of a new gold-standard – powered by blockchain technology and the internet. (Though some nations’ jurisdictions may not permit gold acquisition.)
Gold in a Vault, But Whose Gold Is It?
The issuer of classic gold-backed cryptos, in order to preserve a 1:1 ratio of digital value to gold, must maintain a gold inventory with a trusted third-party.
Gold in a vault, but whose gold is it?
So, in theory at least, these organisations must back up their token offerings with physical gold stored in vaults. But whose gold is it? And is that gold ever obtainable by you, the customer? We’ll return to this question shortly…
The Highs and the Lows of the Crypto Market
Investing in gold-backed tokens may mean you won’t experience the highs and the lows of the crypto market. Instead you’ll see your token asset’s price moving in accordance with the price of gold.
This is because gold is considered a safe-haven asset (not a *when-moon-Lambo token) that’s either negatively correlated or alternatively correlated with the general market.
*when-moon-Lambo: more crypto-speak meaning, roughly, ‘is this coin going to go up in value 10000-fold so this exponential growth ‘to the moon’ will be enough to buy me a nice yellow (golden) Lamborghini?
(Strange bunch, these crypto-heads.)
When moon Lambo!?
So, while you might not experience the dopamine-hit highs of an exploding crypto bull run, when the market dips/crashes/corrects/collapses (the threat of which is more than imminent in our current global circumstances) you’ll feel at ease.
Precious metals, including gold, generally tend to act in an opposing trend to what the rest of the market is doing because buyers from collapsing cash markets rush in at this time in an attempt to protect their wealth from fiat devaluation and destruction.
What’s MINER? (What It Is And What It’s Not)
Is Miner a gold-backed cryptocurrency? No it’s not!
But you can get physical gold if you redeem your MINER tokens? Yes you can!
OK, confusing.
What’s the diff?
What Makes MINER Different from Gold-Backed Tokens?
Let’s unpack this one, as it requires some precision thinking and mental acuity at first…
Photo by Marta Wave from Pexels
MINER is a crypto token that tokenises the labour of active gold mines, which are part of The Miner Network. Each token is the averaged value of one minute of labour across all our approved, managed, in-network gold mines. MINER token is not backed by gold, or pegged to gold. It’s pegged to the service of gold-mining measured in minutes… One MINER token = one minute of mining labour.
MINER token plays the role of giving members a protected place to park their wealth assets – especially important in these times of extreme global market volatility.
MINER token’s a crypto-asset, not, strictly speaking, a currency.
MINER is an ERC-20 token (built on the Ethereum blockchain). As a Miner Network member, you can HODL** (GODL in this case) MINER tokens, holding them as a crypto-asset in your electronic wallet for safe-keeping and wealth-protection.
**HODL: reference term in the cryptocurrency space originating from an apparent tipsy online conversation by a certain Bitcoin talk forum member, GameKyuubi. It’s become part of the common online parlance meaning, in reality, ‘hold’, as in ‘buy-and-hold’ as an investment strategy. It’s gone on to become a meme of various iterations including “Hold On For Dear Life” equating to gripping on tight during crypto market volatility and rollercoasty-type investment experiences…
HODL on!
MINER can be exchanged for Bitcoin (BTC) or Ether (ETH), and then subsequently for other tokens or currencies, and vice versa on our dedicated Miner Network member platform.
MINER tokens can be redeemed for the service of mining and delivery of the products of the service: 24 karat gold bars. As little as 1 oz and up to any amount you wish can be sent to you, almost anywhere in the world. (If your country allows delivery, we’ll send you your gold!) Other cryptos that promise gold delivery have a minimum of 430 oz physical gold product delivery, if they back up their token offering with real gold at all!
What Else Makes Miner Different to the Others? (A Pleasant Ecological Surprise in a Toxic Industry)
Mining practices at The Miner Network are backed by strict ethical and responsible actions towards humans and the planet.
Environmental, Social and Governance Principles (ESG)
No other gold-related token in the cryptosphere gives a Flying Farquhar about ESG principles (social, environmental and governance principles) despite this being a requirement of the UN’s Sustainable Development Goals. (Oh, and the small matter of actually having an earth on which we’ll be able to enjoy our gold-backed lifestyle…)
Planet Earth – home to many humans and lots of other life forms. Image by Lutz Peter from Pixabay
A joint report dated 23 September, 2020, from the Responsible Mining Foundation and the Columbia Center on Sustainable Investment at Columbia University concludes that:
“…as a whole, the mining sector is falling short of the United Nations’ Sustainable Development Goals, or SDGs, a common metric related to ESG themes.”
The mining sector is falling short of the United Nations’ Sustainable Development Goals
These goals range broadly from creating and maintaining humane living and working conditions to education, equality, sustainability, and climate action.
Any gold producer or gold-backed crypto that does not reference these humane and environmental principles is not in alignment with responsible and ethical mining.
MINER on the other hand, DOES pledge to change the face of the mining sector.
We at The Miner Network choose to hold ourselves to the highest standards of ethical mining practices. In doing so, we hope to lead by example and invite mining companies across the globe to join us in the Miner Pledge.
MINER Tokens Offer Net Positive Environmental Impact
As part of The Miner Network, MINER tokens offer net positive environmental impact, due to our stringent Miner Pledge. This means ethical mining: excellent human labour conditions, earth-friendly gold processing methods, and regenerative land practices for mines whose gold source is exhausted.
Miner Network best practices include legal operation, fair labour and ecologically sound extraction
Miner Network Gold Mines Are All Currently Based in the U.S.
The Miner Network’s initial gold mines are all based in North America, and each one exceeds the most stringent North American standards of practice. We are currently creating alliances based on The Miner Pledge with other global mining partners in order to ‘clean up the dirtiest business in the world’ around the world.
Hold Your Horses! If MINER’s an (Eco) Utility Token, How’s That Different from a Security Token or Stablecoin?
1. Utility Tokens
Utility tokens are service-based crypto-tokens or digital vouchers that finance the network and deliver a service and/or product(s) created by the service.
Think of using a token book to gain specials at your favourite restaurant or even the drycleaners. In the case of MINER token, the service is gold mining.
“Utility tokens are integrated into an existing protocol on the blockchain and used to access the services of that protocol. They are not created for direct investment like security tokens, but can be used for payment of services within their specific ecosystems.”
2. Security Tokens
Security tokens are designed to adhere to existing traditional securities’ regulations, and are seen as creating a digital connection between cryptocurrencies built on blockchain technology and more traditional financial markets.
a tradable financial instrument that has some form of monetary value
a financial instrument issued by a company or government in order to raise capital
a financial vehicle purchased by investors looking to profit
“Securities can represent an ownership position in a publicly-traded corporation, a creditor relationship with a governmental body/corporation, or rights to ownership as represented by an option.
A security token is therefore a tokenised security, most likely one that is built on a blockchain, and commonly regarded as the evolutionary development of blockchain-based crowdfunding.
3. Stablecoins
Stablecoins, as we noted above, are tied in the crypto world to the market-agreed value of either one fiat currency, like the US dollar, or a ‘basket’ of fiat currencies.
Gold-backed tokens are considered a type of stable coin as the token is pegged to gold.
“The primary purpose of a utility token is to access or use a product or service.
“The primary purpose of a security token is to create financial gain from the use of a product or service that doesn’t require holding/consuming the token.
“The purpose of a stablecoin is to mirror the price of another asset (usually USD).”
~ Kieran Mesquita, early Bitcoin developer
The MINER Token Is a Utility Token (Not a Security nor a Stablecoin)
MINER token is a utility crypto token that tokenises the service of gold mining. Its inherent value comes from gold production. Each token represents one minute of mining labour by a mine employee in the Miner Network.
MINER token holders are able to access this service by redeeming their tokens for MINER’s products: gold bars, from just 1 ounce up to banker’s bars.
Delivery of Real, Physical Gold (by the Ounce)
Eric Phillips, on hisMoney Today ShowYouTube and ClubHouse channels, discusses various types of gold crypto tokens including MINER token.
Most companies allow only for collection (not always delivery) of a minimum of 430 ounces of gold, which in today’s market equates to approximately $764,591.60 USD.
That’s probably more than most of us are willing (or likely) to part with in order to ‘get the gold’, even if we did have that much stashed under the mattress…
That’s more than most of us are likely to part with in order to ‘get the gold’, even if we did have that much cash stashed under the mattress…
What’s More, You’d Need to Cross the Globe in Order to Collect It!
With offices and vaults in varied locations from Switzerland to Singapore to Canada and Australia, it isn’t always straightforward to get the ‘gold’ part of the supposed ‘gold-backed token’.
Many companies allude to gold in their often vague ‘gold-backed’ promises, but in fine white paper print it can be difficult to find actual means of redeeming your token for physical gold.
Miner Network Members Receive Real Gold
MINER really is the only utility token that delivers real, physical gold by the ounce.
The service of mining ethically responsible ‘green’ gold, measured in minutes, is the best option for you, however much wealth you’re looking to protect, and for the planet.
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MINER Launch Phase 1 (soft launch) is completely sold out!
