What are bitcoins backed by

In addition, miners are unlikely to continue expanding their mining operations at the current rates indefinitely. The Bitcoin protocol subsidizes mining, but those subsidies have built-in checks on their growth. Today, miners receive small fees for the transactions that they verify while mining (accounting for around 10% of miner revenue), as well as whatever profit margins they can get when they sell the bitcoins they have mined. Live Launched by Pax Gold, a trusted American company, the PAXG token represents one troy ounce of a London Right Delivery bar of gold. Launched in 2019, PAXG is stored in Brink’s vaults, one of the approved storage facilities of the London Bullion Market Association. The creators of the gold-pegged cryptocurrency created the token to make buying gold easily, and most importantly, digitized. By buying PAXG, the token owners hold complete ownership of the portion of gold and can also use it for trading purposes.

Likening his plan to cities founded by Alexander the Great, Bukele said Bitcoin City would be circular, with an airport, residential and commercial areas, and feature a central plaza designed to look like a bitcoin symbol from the air. Content from our partners Overall, gold-backed cryptocurrencies can offer investors an alternative to traditional cryptocurrencies and a way to gain exposure to the price of gold. However, it's important for investors to carefully research the specifics of the gold-backed cryptocurrency they're interested in before investing, as there can be differences in terms of security, transparency and regulations.