OneGram is a gold-backed cryptocurrency, that seeks to revolutionize the cryptocurrency world, as well as the monetary system of the Islamic world. In this article, I will summarize some of the key features that make OneGram unique, and I will also address some of the problems it may need to work out in the future. Feel free to watch the video, if you happen to be a auditory learner, or are too cool for reading stuff.
Each Coin is Backed by At Least One Gram of Gold
OneGram has partnered with Gold Guard, to house the gold that backs each OneGram coin (OGC). Initially, each coin will be backed by one gram, but that will eventually change. With each transaction that uses OneGram, a 1% transaction fee will be charged. 30% of this fee will go towards administration fees, charity, and a few other uses. The other 70% of this fee (.7% of each transaction) will be reinvested in more gold. This means that each OGC will be progressively backed by more and more gold, but will never be backed by less than one gram of gold. The maximum transaction fee is equal to 1 OGC.
Solves the Problem Inherent to Most Cryptos
I've long said that the number one problem with cryptocurrencies, is that they, like fiat currencies, have no intrinsic worth. Their true value is essentially zero. OneGram solves this problem, by introducing a coin that is backed by a metal that has been used for thousands of years as money and as a store of real wealth. I'm sure that this fact, will make it highly attractive to silver and gold stackers.
As outlined in the whitepaper, it can be argued that the fiat money used throughout the Islamic world (and the rest of the world) is not Sharia compliant. Since OneGram is backed by actual gold, it is Sharia Compliant. This means the coin has a huge potential for use in the Middle East, and by Muslims in general.
Supply is Limited After ICO
The maximum number of OGCs in existence, is the total bought up during the currently active ICO. This is approximately 12 million OGCs. This would equal a market cap of roughly $500 million. This market cap would need to grow, perhaps through a greater amount of gold backing each coin, or through the eventual introduction of more coins, if this coin is to gain widespread usage in the Middle East, and elsewhere. Currently, it would appear that only a small fraction of those 12 million coins will be in existence after the ICO. Furthermore, if you cash out, and take physical possession of the gold that backs your coin, those coins will be destroyed forever.
OneGram Still Requires Trust
If you choose to own OneGram, you must understand that it still requires a level of trust that is inherent in gold or silver backed currencies. You have to trust that they have the gold they say they have, and that you will be able to take possession of that gold, even during tumultuous times.
Image Source for OneGram Logo: https://onegram.org/wp-content/uploads/2017/02/logo_onegram_no_shadow. png