What Investors Should Know About Gulden

Despite Bitcoin’s widespread reputation, it isn’t used by the common man. Many cryptocurrencies have popped up that aim to address this, but Gulden does this in a unique way. Rather than being purely “technological” in their innovations, they are target Holland and doing their best to remain Dutch-centric.

Introducing Gulden

Gulden (NLG) is the name of the now defunct Dutch currency, and bears a sense of pride and familiarity with natives of the Netherlands. Rijk Plasman is the founder of Gulden and the difference between Gulden and other cryptocurrencies is well-illustrated by the fact he is a UX designer first and foremost.

Gulden can be viewed as trying to answer the everyday payment problems we face, rather than just targeting the geeks who are looking for an elegant, but difficult to apply, solution.

There are several key technological differences between Gulden and Bitcoin (the coin it is meant to be an innovation on. On its most basic level, it has two main differences. First, the block reward never halves, which changes the incentives for miners considerably. Additionally, the supply isn’t as limited as Bitcoin’s, because the goal is to serve the Dutch people. Mr. Plasman hopes to have the Gulden and Euro reach parity in a few years, which is aided by these tokenomics.

One of the core problems Gulden solves that plays well to its goal of being more “for the people” is its vertical integration. Bitcoin is mostly a barebones program that required other companies to build wallet and trading solutions on top of the protocol, but Gulden has this all packaged into one solution. There is an iOs and Android application in circulation, and the creators proudly declare that “no manual is required” to use it.

Vertical integration could be considered a plus or a minus. Although it makes it easier for crypto-noobies to use, it also limits innovation and transparency. However, it could prove to be a very helpful aspect when marketing towards the Dutch people.

Thinking about cryptocurrency on a geographical level rather than trying to build a “new global payment system” is a perverse form of innovation in the blockchain space. Most companies are aiming for largest scale possible, whereas Gulden is very geographically focused.

Gulden’s Unique Existence

Up till now, we have seen some countries (such as Canada) propose the idea of an electronic currency, but those would be run by the government, which defeats the political and ideological reasons some people are for these cryptocurrencies. Gulden is the first mainstream cryptocurrency that is geographically targeted in this way, so it will be interesting to see what happens.

Currently ranked #215 in terms of market capitalization, NLG should be notable to traders right now because of how it is correlated to certain currencies. Over the last month, it has traded relatively even with USD, while appreciating against BTC. This is likely due to its use case being viewed as a replacement to Bitcoin rather than being purely dependent on it.

Gulden is tradeable on Bittrex and has been showing a clear uptrend against Bitcoin over the last month. Volume has remained relatively stable, but if it were to kick in, we could see Gulden take off. Even with a potential dip in the future, this could be a good buy as a hedge against Bitcoin.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.