Aurus Gold crypto currency

By I_g_o_r | Gold backed crypto currencies | 8 Jun 2024

1. The main problem of fiat based cryptos

The most famous and popular cryptos (btc, eth, etc.) are based on fiat money (see [1]). Even the title of the famous paper has the following meaning: “bitcoin is a digitized on blockchain fiat currency”.

Here is the famous paper https://bitcoin.org/bitcoin.pdf"

Let us look on the title “Bitcoin: A Peer-to-Peer Electronic Cash System”. Cash means -fiat currency. Electronic cash means -digitized fiat currency. Peer-to-peer system means -blockchain. If we put all pieces of the puzzle together then we get that bitcoin is a digitized on blockchain fiat currency. In other words, all cryptos (over 27 thousands), which are not backed by hard assets (gold, etc.) are FIAT money in a digital form. For this reason, they can not be a hedge against inflation of other fiat money (in variety of different forms).

People buy cryptocurrencies using fiat currencies and wait for their price to rise. They will be disappointed, because when cryptos reach millions in fiat money these millions will be worthless, like in Germany during hyperinflation on in Zimbabwe (when many people had useless millions). Think about a crypto coin as a bag with fiat money. The amount of money in the bag is equal to the price of this coin. The higher the price, the more fiat money is in the bag. But, when fiat money are useless (hyper inflated) it does not matter what amount of useless fiat money is in the bag. Therefore, it does not matter if bitcoin price will be million or billion in fiat money if fiat money will be useless.

Only cryptos backed by hard assets (gold, etc.) will preserve wealth, because if you redeem gold backed crypto on physical gold you will have the physical entity (gold) with intrinsic values, which can not be inflated to zero as fiat currencies. See [7] on historical performance of gold during long periods of inflation.

2. Advantages of gold backed cryptos over physical gold

The first obvious advantage of gold backed cryptos over physical gold is portability/transportability. You do not need to take with you bags with gold when you are moving, relocating, or traveling.

The second obvious advantage of gold backed cryptos over physical gold is a speed of conversion to fiat or other crypto currencies.

The third advantage of gold backed cryptos over physical gold is availability of two ways to increase wealth. The first way is from appreciation of gold over inflated fiat currencies. The second way is from profitable trading during speculative bursts (see [2]).

3. Disadvantages of gold backed cryptos over physical gold

The first disadvantage is a counter party risk. This is a risk that the counter party will not deliver gold to you.

The second disadvantage is a technological risk. This is a risk that due to an error, malfunction, etc. some or all of your cryptos will disappear and then you will not be able to redeem them to real physical gold.

4. Aurus gold crypto

In this post we look at Aurus GOLD (https://aurus.io/ ). On the official website, it is stated:

“Aurus precious metal tokens are 1:1 backed by one gram of gold, silver and platinum respectively, produced by trusted bullion refineries and dealers globally. AurusX (AX), our ecosystem token, earns rewards in tokenized gold, silver and platinum.

After buying tokens you can store them safely in the digital wallet of the Aurus mobile app and in the Vault Card, a highly secure and affordable hardware wallet.

Access liquidity, fiat-on & off ramps to buy, swap and sell your assets on both centralized and decentralized crypto exchanges.

You can earn rewards paid in tokenized gold, silver and platinum via the AurusX token.

Create your own gold and silver backed NFTs and use your tGOLD tokens in blockchain-powered video games, such as Play2Earn.

Aurus was founded in 2018 on the belief of opening the precious metals market to everyone, with the conviction to collaborate with traditional market participants, empowering them with the tools and technology necessary to make precious metals accessible assets worldwide.

Today, Aurus is leveraging metal-backed blockchain technology to help gold, silver, and platinum businesses democratize these assets via the digital economy while earning passive rewards in the digital assets & DeFi space.

Together with our partners, Aurus seeks to become the global leader in precious metals tokenization, helping the traditional industry to drive innovation and increase accessibility to precious metals globally.”

5. Red flags

A) Fees on redemption are not disclosed in advance

There is no information about fees on redemption. Users need to send request to Aurus’s partners (local distributors) to get such information.

B) Not responded to my request

On May 22, 2024 I had sent them my request with questions.

I have not received any response, as of today.

C) Not ready for post quantum era

The majority of credible experts made public statements that the Q-day is very close (see [3-5]).

I have not found on https://aurus.io/ site any document which gives answers on the following important questions:

1) Which post-quantum encryption algorithms will be used to secure their post-quantum blockchain?

2) When the post-quantum blockchain will be operational?

There are no answers on these questions on Aurus Gold website. All blockchains which will not be ready for post quantum era before the Q-day will disappear after the Q-day.

D) Negative comments on social networks and internet forums

There are many negative comments about Aurus on internet (see [8-10]). People accuse Aurus in loses of tokens, lack of liquidity and “atrocious way to treat a customer!”. I also had observed that some negative comments were deleted from or moved to the end of search queries.

E) Token are lost if the Aurus cards are lost or tokens are sent to unsupported wallets

It is stated that if tGOLD or Vault card will be lost then the tokens will be lost.