What is nanogold?

Nanogold is a gold-backed sovereign cryptocurrency issued by the nation of Bougainville in the South Pacific.  Nanogold combines the safety and security of physical gold with the convenience and innovation of blockchain technology.  In other words, you can trade and spend nanogold just like other cryptocurrencies but it is gold-backed, meaning that in the future you will be able to exchange nanogold for real physical gold at any time.  For more information about the nation of Bougainville and its history, please visit the About section.

    What is the advantage of gold-backed cryptocurrency over other kinds of cryptocurrency?

    Other cryptocurrencies like Bitcoin are not backed by anything physical.  They exist only in the virtual world and are not anchored to any object in the real world, making them very volatile.  Cryptocurrencies such as Bitcoin, Litecoin, and Bitcoin Cash are competing with each other to convince people that they are an effective way to store value over time.  Gold, on the other hand, has been a store of value for thousands of years.  The price of gold is very stable, which makes it very useful in everyday commerce and as a base currency for the world.  Indeed we believe that all items should be priced in gold.

    What is the advantage of nanogold over other gold-backed cryptocurrencies?

    1. Sovereign.  Nanogold is issued under the authority of HM King David Peii II of Bougainville and backed by the mineral wealth of Bougainville Island.
    2. Charitable.  Profits realized will be used for the sustainable development of Bougainville Island and for the benefit of humanity as a whole.
    3. Free.  There are no transaction fees or asset management fees associated with nanogold beyond the underlying blockchain fee which is less than one cent per transaction.  Some gold-backed cryptocurrencies are charging up to 1% per transaction or up to 2% per year in management fees.
    4. Permissionless.  Anyone is free to use nanogold.  Some gold-backed cryptocurrencies are fully permissioned and controlled by central authorities.
    5. Fast and Scalable.  Nanogold is built using the fastest and most scalable blockchain algorithm in the world.  Transactions complete in seconds.

    What are the reasons to buy nanogold?

    1. Diversification.  Most investment advisors recommend that a portion of all portfolios be allocated to gold.  Recommendations vary from anywhere to 5% to over 25%, depending on individual risk tolerance and other factors.  In general, investors with a lower tolerance for risk should hold a higher percentage of gold in their portfolios.
    2. Profit-Taking.  Cryptocurrency investors may use nanogold as a refuge from volatile trading markets.  For example, in a cryptocurrency market downturn, nanogold could be considered a safe haven as it is equivalent to physical gold.
    3. Profit-Making.  Nanogold investors may profit in the sense that the price of gold may rise over time relative to other assets such as paper money.  Some gold market analysts such as James Rickards calculate that the price of gold should rise to as high as $10,000 per troy ounce if the world reverts to the gold standard.  This is the price level of gold required to provide backing for the massive amount of fiat currency in the world.
    4. Trading.  Cryptocurrency investors may use nanogold as a currency against which to trade other crypto-assets.  We expect the number of markets in which nanogold is a counter currency to increase over time.
    5. Commerce.  Nanogold should be more useful in commerce than volatile crypto-assets such as Bitcoin.  The primary reason is that consumers and merchants should not be as heavily impacted by exchange rate risk due to the relative stability of the price of gold.

    When will nanogold launch?  What is the roadmap?

    Nanogold will launch progressively throughout 2018.  Initially, 3.3 kilograms of nanogold will be airdropped into blockchain accounts.  Following that, $33 million dollars worth of nanogold will be sold onto decentralized exchanges at an 11% discount to the spot rate of gold.  Please monitor our News Feed for important updates as the Nanogold Project progresses.  The high-level roadmap is described below:

    • 2018 H1:  Nanogold Launches and Completes Airdrop
    • 2018 H2:  Provide Liquidity, Trading Expands to Multiple Exchanges
    • 2019 H1:  Partnerships with Gold Dealers and Refineries
    • 2019 H2:  Alluvial Gold Exports Resumed

    On which blockchain(s) will nanogold be built?

    Nanogold will be released initally on the Waves blockchain.  We may consider releasing nanogold tokens onto additional blockchains in the future.

    Are there any transaction fees or asset management fees?

    No, there are no transaction fees or asset management fees associated with nanogold.  Nanogold is completely free to use.  The underlying blockchain charges a nominal fee for enabling transactions, but there are no additional fees associated with nanogold.  At time of writing, the fee for a transaction on the Waves blockchain is less than $0.01.

    What are the units of nanogold?

    One unit of nanogold is equivalent to one centigram of 99.5% pure physical gold.  Thus, at a spot gold price of $43 per gram, one nanogold is worth approximately $0.43.  And likewise one hundred units of nanogold is equivalent to one gram of gold.  Nanogold units are divisible up to seven decimal places, or up to one nanogram of physical gold.

    Is nanogold redeemable for physical gold?

    In the initial stage nanogold will not be directly redeemable.  We are working hard to ensure that it becomes redeemable for pure physical gold at the earliest possible date.  Our goal is to enable the smooth delivery of physical gold to all locations globally via insured global carriers.  In addition, we are working to ensure that nanogold can be easily traded for other cryptocurrencies on decentralized exchanges.

    Is nanogold environmentally friendly?

    Yes.  Nanogold is built on the Waves blockchain which uses the Bitcoin-NG scalable blockchain protocol from Cornell University.  In technical terms there is a very big difference between energy-consuming Proof-of-Work algorithms like the one behind Bitcoin, and more scalable Proof-of-Stake alternatives.  In addition, with regards to physical gold mining, the Nanogold Project is dedicated to the use of new technologies and sustainable mining practices that minimize impact on surrounding environments and communities.

    What is the target reserve ratio for nanogold?

    We are targeting a net liquid asset to outstanding nanogold ratio of 100%.  Modern banks typically only keep a 10% cash reserve.  We are targeting a 100% reserve ratio, making nanogold orders of magnitude stronger than most banks.  The sovereign wealth fund backing nanogold will hold a combination of gold, crypto-assets, and traditional assets with a target of outperforming the price of gold over time.  That is achievable over the long term because gold is a store of value and not a yield-bearing investment.  Thus nanogold is a cryptocurrency backed by both a sovereign wealth fund and by the mineral resources of Bougainville island.

    What is the target exchange rate for nanogold?

    One unit of nanogold is equivalent to one centigram of physical gold.  At time of writing, one centigram of gold is worth $0.43 cents.  After an initial 11% discounted sale on the first $33 million dollars worth of nanogold, additional nanogold units will be created and sold into the market at or slightly above the spot price of gold.  If the opportunity arises we may also choose to buy back nanogold from the market below the spot price of gold.

    Do you have the gold?

    The islands of the South Pacific including the Philippines, Indonesia, New Guinea, and the Solomon Islands are some of the richest gold-mining areas of the world and have been since Biblical times.  The Panguna mine in Bougainville was the largest open pit copper and gold mine in the world for decades, and it is only one of many gold mines in Bougainville.  Yes, we have the gold.  For more information on the history of Bougainville, please visit the About section.

    How do you protect the private keys?

    We cannot provide details about our IT security procedures but can say that the nanogold project is advised by former high-level CIA and NSA professionals.

    What is that symbol?

    The logo for nanogold is a special geometric shape called the Vector Equilibrium.  It is the only geometric shape in which all of the vectors are of equal length, and in that way it represents a state of perfect balance.  We chose this symbol because of the balance that gold and the traditional gold standard brings to human interaction and economics.

    How can I contact you?

    Please email contact@nanogold.com