Going Dutch: What the Gulden Altcoin Does
What is Gulden, the platform that allows flexible payments and movement between fiat and Bitcoin
If you looked through the long list of altcoins and tokens, sometimes a familiar name pops up. Gulden (NLG) certainly sounds appealing next to less serious coin names. But does it have anything in common with the old Dutch gold coin with similarly named equivalents in Germany and Austria? And Gulden has nothing to do with physical gold, and is not related to gold-backed cryptocurrencies.
The Gulden certainly relies on nostalgia and history for its appeal, and it targets European buyers by trading on LiteBit.EU and is easily exchanged for Euros. So there is little surprise that the appeal and usage of Gulden are centered on the Netherlands.
Gulden is related to the app Nocks.co, which handles payments to merchants. This is one of the main advantages of Gulden, as the project strives to become popular for everyday use. The Gulden team is focused on the Dutch market and Gulden adoption is rather high compared to other cryptocurrencies.
What is Gulden
Gulden is a cryptocoin, but the project also involves an app and a payment system that allows quick conversion between fiat and Gulden.
As an asset, Gulden is among the top 100 on CoinMarketCap.
Gulden is a Scrypt-based cryptocurrency that uses Proof-Of-Work. It is mined similarly to Litecoin and other altcoins based on the same algorithm. Blocks are created every 150 seconds, the miner that discovers the next block receives a reward of 100 Gulden.
or now, there are very few user-friendly mining pools for Gulden.
Buying Gulden is easier for European clients. Besides using LiteBit.EU, the official site offers to sell Gulden. But the banks listed are not available in every country. Most are Dutch, and some don't have an international presence even in the Euro area.
The Gulden project promises you can send funds directly to an IBAN, but there are limitations- being in the SEPA European banking area would help much. The problem is, if you have so much access to banking, where is the need to use a cryptocurrency. And there are limitations of sending funds, up to 500 EUR per transaction.
Gulden gives one advantage- the app has a hidden conversion engine so you can pay Bitcoin merchants in Gulden coins. Given that the historical Gulden was an internationally recognized means of payment, the new blockchain version shares some of the features- it is portable and convertible, available through an intuitive mobile app that anyone could use.
But it still has the limitations of a cryptocurrency, such as a long waiting time to synchronize with the network. And the Gulden wallet will eat up your processor power as it tries to synchronize with the network- the app is not that friendly.
Despite the availability for European clients, Gulden remains an asset pretty much limited to the Bittrex exchange. More than 93% of trading is concentrated on Bittrex against Bitcoin, which means that the NLG coins is vulnerable to pumps, whales and speculation.
The Gulden team claims Gulden rises in value as the system adds more users. But the more likely reason is trading and speculation. And that is why the market price chart for Gulden looks like that:
The Gulden was almost flat and unknown before the general boom in cryptocurrencies in 2017.
Investing in Gulden
The Verdict on Gulden
If you are in Holland specifically and in Europe in general, buying Gulden may make sense. But this coin is too localized to be meaningful to a large user base, at least for now. The app and interface are user-friendly enough and Gulden is sometimes compared to Dash for being a cryptocurrency that strives to appeal to older, less technically-savvy users.