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RE: Royal Mint trading gold using blockchain technology.
what you have to understand is the RMG coin is 1 coin = 1 gram of gold, gold at the moment is £30.91 per gram, say it goes to £50 per RMG or £500 RMG thats what price it is a gram, so if it takes of so will gold, simple, that what I see thats the salesman in me better than sliced bread.
Right. Tied to spot.
But can the gold-backed RMG ever become more in demand than its physical counterpart, gold itself? Could the crypto version of gold pull real gold up by its own boot straps, so to speak? And drag the physical per ounce price higher?
I wonder if RMG will always be anchored to the gram cost as its parent, rather than the other way around. Even if the alternative isn't a direct causality, but more of a popularity based demand increase.
From what I understand from the factsheet, RMG can have a premium over gold.
What I don't understand is "Royal Mint [...] will endeavour to buy back any RMG if the trading price falls below the spot [...] for more than 24 h". Does that mean they can forcibly buy back your RMG even if you don't want to sell because the price has been manipulated??