A Gold Backed Cryptocurrency? Not So Fast

By michaelsuede, libertariannews.org

A recent Yahoo Finance press release by NoFiatCoin claims that a new gold backed cryptocurrency has been created that can act as an alternative to bitcoin. The article reads like a news article, but it is actually a self-promotional advertisement written by NoFiatCoin.

The article reads, œTraded on the Ripple Network, this next generation cryptocurrency released by NoFiatCoin | XNF is the first coin in the digital currency market to be backed by precious metals. The coin was released on the 6th of January and saw its value rise almost 50% to $2.10 in just one week.

The article goes on to state that, œNoFiatCoin wants to avoid problems associated with mining: waste of computing power, energy and the possibility of a mining pool taking control of the market by acquiring 51% of all available mining capacity. Therefore XNF, like XRP (currency of the Ripple Network) are pre-mined and can be directly obtained on the Ripple Network or through XNF Exchanges.