Cryptocurrencies and other digital tokens have always been opposed to fiat money for their inherent volatility. The reason for these constant fluctuations in prices lays in the fact that cryptocurrencies have no tangible backing. Despite fiat currencies are not backed by gold any more, their prices are still calculated against reserves and assets their government owns, while decentralized assets’ value is purely market based.During the whole history of mankind, there has not been anything more stable than gold. From ancient times to our modern reality, gold continues to be one of the most sought after precious metals. And thus, it’s hard to find a more reliable and stable way to hedge inflation, than owing gold or owing a currency backed by it. Moreover, gold still continues to be
Topics:
Eugenia Kovaliova considers the following as important: Altcoins, Companies, Cryptocurrencies, digital gold, Gold, gold stablecoin, News
This could be interesting, too:
Temitope Olatunji writes X Empire Unveils ‘Chill Phase’ Update: Community to Benefit from Expanded Tokenomics
Bhushan Akolkar writes Cardano Investors Continue to Be Hopeful despite 11% ADA Price Drop
Bena Ilyas writes Stablecoin Transactions Constitute 43% of Sub-Saharan Africa’s Volume
Chimamanda U. Martha writes Crypto Exchange ADEX Teams Up with Unizen to Enhance Trading Experience for Users
Cryptocurrencies and other digital tokens have always been opposed to fiat money for their inherent volatility. The reason for these constant fluctuations in prices lays in the fact that cryptocurrencies have no tangible backing. Despite fiat currencies are not backed by gold any more, their prices are still calculated against reserves and assets their government owns, while decentralized assets’ value is purely market based.
During the whole history of mankind, there has not been anything more stable than gold. From ancient times to our modern reality, gold continues to be one of the most sought after precious metals. And thus, it’s hard to find a more reliable and stable way to hedge inflation, than owing gold or owing a currency backed by it. Moreover, gold still continues to be recognized and accepted in every part of the world.
Now, blockchain-based platform Digital Gold is taking the most stable age-old asset to the digital era by launching its Ethereum-based GOLD ERC20 compliant token, which represents itself a digital version of gold.
GOLD is niether a new blockchain system, nor just anther token. It is a digital asset which is based by tangible physical gold, which, first of all, means that its price is totally stable and not affected by market fluctuations. The actual gold is stored in a vault owned by BullionStar, a precious metal holding company famed for its high-security vaults. Established and located in Singapore, users of the service benefit from national regulations that emphasize strong ownership laws.
Moreover, it’s can’t but be noted that owing GOLD tokens is for a range of reasons even better than owing real physical gold. Being totally equal to actual gold in price (1 GOLD equals 1 gram of actual gold), GOLD token represents itself a more secure way to store the precious metal. Also, the fact that it is digital eases the transactions, which means that GOLD holders can transact real gold as easy as any other crypto.
The platform for GOLD transactions offers lowest fees. Holders only need to pay a small annual fee of 0.99% for the physical storage of the gold backing their GOLD. And the team behind the asset plans to make it even less in near future.
The Digital Gold platform allows any user to audit the whole system, ensuring that GOLD tokens issued are fully backed by physical gold through smart contracts. And, finally, GOLD can be liquidated for money through the platform’s always online market.
Unlike other stablecoins, GOLD represents not fiat, but gold. Gold has one of the lowest volatility in value. Compared to fiat, users know that gold value tends to nearly always grow over the long term.
Other stablecoins that are pegged to fiat such as USD or EUR are vulnerable to economic aftershocks affecting the jurisdictions responsible for those currencies. Gold, however, behaves like a commodity. It nearly always rises in value and in case of economic turmoil, people tend to buy gold, further driving up its value.