The month of June began pretty well for Gulden cryptocurrencyholders. They saw the value of Gulden double from six cents to nearly thirteen eurocents in just a few days. Nice return! And since the beginning of March it has not been the first time that the rate had made great progress. Where it went up with tens of a cent a few months ago, it’s been going up with whole cents now. Where does this end? Is there any more to come? Can you anticipate it or should we believe the AFM. That warns of doom scenarios, while they themselves pump 80 billion into the euro every month through the ECB! How ironic.
But well, it’s interesting to have a look at Gulden. Why has that rate been rising for months, and more importantly, why should you expect it to continue to rise?
First, let’s dive into Gulden. What is Gulden, what does it stand for and where does it wants to go?
Gulden is digital money based on the blockchain technology, also called a cryptocurrency. Many people think blockchain is the same as cryptocurrency, but it’s two separate things. Where the blockchain is the railroad, the cryprocurrency is the train on the rails. That being said, obviously you can put different trains and wagons on those rails. Think of other applications on the Gulden blockchain network. Like apps that use the network, but more about that later.
Let’s get back to the Gulden train. Gulden was devised by Rijk Plasman and is a decentralized currency, which means that nobody is the owner of Gulden. So neighter does Rijk. And if he or other members of the development team would stop, the train will continue. This because Gulden is an open source project. The code is public. Can not somebody then take a copy and start his own coin? In theory this could be done, only in practice this is very difficult. First of all, it would be very much time consuming. Someone who does or has to do with software development knows what I mean. On the other hand, you must also have the ability to program the blockchain. And the latter is, now that banks and governments worldwide are massively attracting blockchain programmers, becoming scarce.
Gulden is mainly intended to pay with, for example in shops, restaurants, online and between relatives. Boundless, fast and safe. It is also much cheaper than keeping a bank account with its quarterly costs, because you manage your money yourself.
People often forget conveniently that you are transfering an amount to your bank every quarter just to being able to hold a payment account. Because this is often payed automatically you do not notice it so much. Clever thinking of those banks. But it can be done differently! Not paying anything at all to keep your money safe. Just manage your money on the blockchain yourself. And which train you choose to do so is of course up to you. But Gulden is definitifaly a great choice.
So there is no bank involved, is that safe?
Yes, as safe as you are. If you save money on the blockchain, it registers on many computers worldwide. All those computers check each other, so it can not be tempered with. No Ice-Save or Malta scenes! Only with your special recovery sentence/key you have access. This key consists of twelve words and is in your payment application, the wallet. Properly storing this key is crucial. And the securer you keep it, the safer your money. So, where you previously paid the bank to keep your key, with all corruption, risks and bank scandals free of charge, you can do it yourself now. Gives a much beter feeling doesn’t it, being able to arrange it yourself!
Are there any more benefits to using Gulden?
Well, do you have a moment?
Let’s start with that it’s just super fast too. If you transfer Gulden, it will be credited within seconds. So also on weekends an up to date balance, worldwide! And to zero costs! Ever tried to transfer money abroad? Apart from the days it takes, its pretty costly. Transfering hundred Euros from any european country to America will already cost you twenty-five Euros transaction and administration costs using regular banks. And why? Because somebody still has to pay those high salaries, logically.
But let’s be honest, even Gulden costs a little money. For each transaction, a small fee is deducted. This is in the order of cents. This fee is distributed among the people who use their computers worldwide to keep the Gulden network up and running, the ‘miners’. Pretty fair.
Will this fee remain that low in the future? Good question, since indeed with for example Bitcoin these fees are rising on a daily basis. Fees as high as a few Euro are very common today. In fact, Bitcoin has therefor become unattractive as a means of payment. Imagine you want to buy an ice cream in the stations store for three Euro, then you have to add another two Euros for the Bitcoin transaction. And then you also have a big chance that your payment confirmes long after the ice cream has been melted. Gulden is prepared for this. Not only is the transaction capacity many times bigger, it has been taken into account from the outset. Vision, they call it at Gulden. Everything is done to make Gulden an easy and regular means of payment. The ultimate goal is to be able to pay at the local supermarket. The fun is that Guldens are already accepted at more and more places.
Entrepreneurs take note
I mentioned it shortly above, Gulden would like to be a low-threshold payment method that will allow you to pay anywhere in the world. Currently there are about 65,000 Gulden users. And that number is growing faster and faster. Where using it is virtually free of charge , there are also great advantages for the entrepreneur receiving Gulden payments. I do not need to explain to an entrepreneur what his monthly costs for payment terminals are. Or the cost of an online/iDeal transaction. Gulden does not have these costs. But how do you get into Gulden as an entrepreneur? Simple. In many areas Gulden works closely with the payment provider Nocks BV. Within a few steps, you can sign up as an entrepreneur and download the free app. In the app tapp in the amount the customer has to pay in Euros. The app automatically shows the amount in Guldens with a QR code. The customer scans this code with his phone and the transaction is done. Nocks will sent the entrepreneur a detailed overview of the transactions for his accountant. For this service, only a few Eurocent will be calculated for the transaction, no further costs! No bank can compete with this!
Are there any companies working with Gulden?
In short? Yes! For example, you can pay with Guldens (video) at Taxi Noord in Groningen, have a drink on Curaçao or take a sandwich at the Subway restaurant in Leeuwarden.
But also the large business internet service provider Xenosite works with Gulden. The number of acceptants is growing ever faster. And that’s not all, of course, you can also pay with the app at the thousands of Bitcoin acceptors. Just scan the Bitcoin QR code, done. And if you want to transfer money to your energy supplier then that’s not a problem either. Fill in the IBAN number and go.
Gulden has an open community that is competent and helpful to answer all sorts of questions, if necessary in English, French and German. And the app is now available in Korean and Chinese to name just a few languages.
Now we are talking about the community. Here’s just a quote that I saw today: “That transparency and (Gulden)teams clear vision actually convinced me to buy Gulden.“. Especially people who are familiar with crypto coins are excited about the ease of use and speed of Gulden.
It can be very tempting to put all your savings in Gulden, but the community warns again and again. Just invest with money you can really miss. Not because one has no confidence, but more because one tries to prevent a hype. Gulden itself does not advertise or the like, even though the community itself is very busy promoting Gulden in a fair and proper way. Informing people, so they can make their own choices.
Where does Gulden go from here? Is it wise to invest? The big question of course. Usually asked by people who want to get rich fast. Gulden is different from the majority of crypto coins. Many of the crypto coins are strongly linked to the Bitcoin rate. The unique thing about Gulden is that there is a very large group of people who use Gulden but have never owned any Bitcoin. That’s because you can purchase Gulden directly through Nocks (in the app). Gulden has much more roots in the Euro rate than in Bitcoins’. This is getting stronger now that two Euro-Gulden exchanges will be opened soon. Price influence by bitcoin is then completely marginalized. Of course, it will still be possible to buy Gulden through Bitcoin but it will not be the main market anymore. Another effect of this is, that when Bitcoin price plummets, Gulden remains stable and even rises! Gulden is increasingly becoming a safe haven for crytousers, such as gold is for stock trading.
Nocks you say?
How reliable is that Nocks anyways? And why is a copy of your ID requested if you want to buy/sell for higher amounts?
The reason you have to provide your ID card is that companies that deal with money must comply with strict rules. The ID check ensures that Nocks can not be used for laundering practices. With this they try to make Gulden even safer. So no Bitcoin scam scenes.
By the way, blockchain accounts are not anonymous, which many people tend to think. Everyone can see what’s in your account, very transparent. However, it is difficult to find out who’s the owner of that account. And to make it even harder, your wallet automatically issues a new accountnumber after each transaction, with the old one still working of course. A bit technical but some users might like to know this.
Gulden has an impressive roadmap for developments. The apps and underlying techniques are continually enhanced and further perfected. As well as the Gulden network and developments at Nocks.
There is a roadmap for almost all major things that are currently being developed. I’ll shortly mention PoW2. That’s a big software update that comes about. This update makes Gulden transactions not only unprecedentely much faster, but also much safer. That is achieved by so-called ‘witnesses’. This means that you can create a deposit account in the Gulden app. And as a good deposit account entails, you will receive interest on this account. The next question is of course, where does this interest come from and how high is it. Simple. Previously I spoke of transaction costs. With each transfer, a small amount is retained for maintaining the Gulden network. This went until recently for the full one hundred percent to the ‘miners’. With the software update and thus the witness program, transaction costs are now allocated 20 percent to pay the interest on the deposits. How much interest or compensation you’ll receive depends a little on how long you deposite your Gulden, ranging from one month to a maximum of three years, and how many you store away. The small estimate is that it could yield about two percent. Here too, Gulden is a better choice than putting your money in the hands of a regular bank. But how does this make the network safer? This is something more technical, but it means that the depositor will help, automatically, to monitor the network. For this reason, the deposit app must be connected to the internet day and night. A small computer like a Rasberry PI will be suficient.
As stated, Gulden is just one of the many trains on the Gulden blockchain. More will fit on the railway. And Nocks is currently busy with it. Individual apps that have nothing to do with Gulden itself, are currently under development. And in November we will probably see the first ones appear. For example, think of an app for concert tickets. Never again you have the fear of buying a fake ticket through Marketplace or eBay, because the ticket itself ‘knows’ if it’s valid. And so there are countless examples imaginable on how the railway will be used.
But Gulden also stands for a beautiful future. Today, Rijk, founder of Gulden, shared the following: Most of (as far as I know all) cryptocoins use a blockchain system which is not very efficient, for example, many empty blocks are being mined (so without transactions). Or speed of transactions is achieved with just adding more blocks (ridiculous). With PoW2, a lot of these issues are being solved, but we are working on something else. Internally it’s called Sonic. It is an efficient and fast synchronization system. In the first version of this we will try to get the synchronization under one hour. In the next versions, it is even getting shorter than that.
We are very busy with this kind of long-term development, it has to be faster and better. We do not just add short-term features for hype, because then it will slow down or even break down completely.
About Sonic. If you install the app or wallet for the first time, synchronization takes place with the blockchain. This is approximately 600 MB for Gulden which is small compared to Bitcoin’s 119 GB. However, the first synchronization still takes up a couple of hours. By means of ‘Sonic’, The Gulden developers try to solve this problem and speed up this process.
Bitcoin was the first, something with inhibitory lead, the steam train as you like, with Gulden being the maglev train.
Is Gulden worth an investment? Let me say it like this: Any time soon people will notice that there’s a currency out there that’s leading in developments ……
P.S. for those really interested in ETF’s, Shares and Investment Companies looking at Gulden, just read this GuldenTrader partnership with Tatch Capital Ltd. article.