What Is Gemini Dollar (GUSD)?

The Gemini Dollar is the native cryptocurrency of the Gemini exchange. This cryptographic token is built on the ETH-20 standard of the Ethereum blockchain as a stablecoin and is represented by the symbol GUSD.

Released in 2018, this stablecoin allows for commission-free trading of the two currencies on the Gemini exchange. Compared to their conventional dollar coin standard, the GUSD currency provides additional features, including the ability to conduct transactions more quickly and without incurring any costs.

How Gemini Dollar (GUSD) Works

The Gemini dollar is based on smart contracts, which can be used to store and send money premised on the developer’s guidelines. The Ethereum network meets these needs, and it also provides a technical standard for tokens called the ERC20 standard, which is widely used.

More specifically, whenever a user decides to convert their holdings into Gemini Dollars, the Gemini exchange will issue a GUSD for that user. Once a confirmed Gemini user has purchased a Gemini Dollar, the user is permitted to send that currency to any address on the public Ethereum network. Because of this, the user can do whatever they like with the token, including holding, transferring, purchasing, and selling it. 

What Is Gemini Dollar (GUSD) Used For?

On the Gemini exchange, you can buy and sell various cryptocurrencies using GUSD. This eliminates the need to convert your cryptocurrency holdings into USD first.

Moreover, if you want to reduce the volatility of your assets while still enjoying the benefits of cryptocurrencies, like rapid transaction speeds and minimal transaction costs, GUSD is a perfect investment option.

The GUSD whitepaper states that the currency was created to function as a reliable alternative to the US dollar by being tied at a 1:1 ratio. Therefore, the value of GUSD mirrors that of the  US dollar. 

All potential buyers of Gemini’s coin can rest assured of their investment’s stability thanks to this proposal. First off, Gemini keeps US dollars in secure accounts at U.S. financial institutions insured by the Federal Deposit Insurance Corporation (FDIC). Also, the money market funds are backed by short-term US Treasury bonds and kept under custody. 

As an added measure, BPM Accounting and Consulting monitor the GUSD value regularly to ensure it remains stable relative to the US dollar.

Where to Buy Gemini Dollar (GUSD)?

The Gemini exchange is by far the most popular destination for GUSD investors. However, you can also acquire this coin on several other well-known exchanges, such as Binance, Crypto.com, or Coinbase.

A functional email address is mandatory when creating an account on any crypto trading site. Some exchanges may also ask for your identification or phone number.

If you want to buy GUSD using your national currency, you will have to complete the Know-Your-Customer (KYC) user authentication check.

The next step after establishing your identification is to activate two-factor authentication (2FA) before making a deposit. The safety of your money and the account itself will both improve as a result of this step. 

When it comes to acquiring your GUSD, Instant Buy orders are the quickest and most convenient way to acquire GUSD once you have registered your trading account on an exchange that trades in GUSD. Only some cryptocurrency markets provide this service, though.

The other typical method of buying cryptocurrency is opening trade on the spot market, where the buyer sets the price. Please note that while the Instant Buy option is convenient, it is often more expensive than purchasing on the spot market.

How Long Has Gemini Dollar (GUSD) Been Around? 

Creating a trustworthy stablecoin was the ultimate goal of the Gemini Trust Company, LLC (Gemini), founded in 2014 by brothers Cameron and Tyler Winklevoss. For this, they came up with the idea of minting the Gemini Dollar (GUSD). 

In 2018, Gemini was granted authorization by the New York Department of Financial Services (NYDFS) to launch its stablecoin.

What’s Controversial About Gemini Dollar (GUSD)?

Issuing tokens is risky, as is the case with all stablecoins. This is because the supply of Gemini Dollars (both newly created and already in circulation) must always stay above the underlying U.S. dollar reserve balance.

How Many GUSD Tokens Are There?

Due to the fact that the Gemini exchange issues a GUSD token whenever a user converts their holdings into a GUSD, the total quantity of Gemini Dollars (GUSD) is unknown, but you can always check the current circulating supply on CoinMarketCap.

Can GUSD Be Mined?

Yes. If you want to try Gemini Dollar mining, you must first determine whether your current setup will be profitable. Both the price of Gemini Dollars and the number of miners have significant effects on the venture’s profitability, so make sure you take this into account. It’s also advisable to think about how profitable it would be to invest in a mining rig at the current pricing of GUSD.

Although it is feasible to mine Gemini Dollar with a personal computer, dedicated cryptocurrency miners should consider purchasing ASIC mining equipment. ASIC miners are, however, very expensive at the moment. A graphics processing unit (GPU) will not produce a lot of hashes when mining with a computer, but it could be helpful for getting started with Gemini Dollar. Ultimately, you can decide to join a mining pool to enhance your potential earnings from GUSD mining.

Given that the profitability of mining Gemini Dollars differs from miner to miner, providing an average is difficult. There are a lot of factors to consider, such as the price of power, the price of a mining setup, taxation, etc. The best option is to look at the profitability graphs for the Gemini Dollar. They’ll let you know how much money can be made mining Gemini Dollars based on your location.

Market Cap and Price History of Gemini Dollar (GUSD)

Market capitalization for the Gemini Dollar as of this writing is USD 334,564,977 with a 24-hour trading volume of USD 465,267, making it the 105th most valuable cryptocurrency overall, according to CoinMarketCap. 

Centre Consortium, a joint venture between Circle Internet Financial and Coinbase, introduced the USDC in 2018, almost at the same time as the GUSD was launched. The value of a USDC is set at parity with the US dollar. This stablecoin is issued and redeemed by Circle, but other members of the Centre Consortium can do so as well. Also, USDC can only be issued by officially recognized financial entities.

What Does the Gemini Dollar (GUSD) Project Road Map Look Like?

In essence, the Gemini Dollar functions like cryptocurrency on the Ethereum blockchain in a manner analogous to the transfer of Ether. The fact that the Gemini Dollar is a smart contract that operates on the Ethereum network also means that its owner is free to spend the token anyplace that Ethereum is accepted. Since it is a native token to the Ethereum ecosystem, the GUSD token can be used with any Ethereum-based app or service. 

As the supporting infrastructure grows, the practicality of this token will also improve. That’s why many dApps and platforms are ready to help consumers get their hands on and use tokens that conform to the ERC20 standard, including GUSD.

Pros and Cons of Gemini Dollar (GUSD)

Pros

• A regularly audited, regulated, stable, and backed cryptocurrency;
• No fee when you buy it on the Gemini exchange;
• GUSD can be used for staking and trading on decentralized exchanges;
• Defi’s algorithmic market makers provide ample liquidity;
• DeFi exchanges and the Gemini platform are great options for earning a high-interest rate on GUSD.

Cons

• You’ll need to go through a lengthy KYC procedure before you can buy your GUSD tokens through Gemini.