Digital Gold: Face-lifting the Gold Market

in crypto •  5 years ago 

Welcome to today’s review and in today’s review, we will be taking a keen look at the Digital Gold platform.

Gold remains a prized asset in the financial market most notable for its low volatility and its age-long history as a remarkable store of value and a means of barter. Gold is renowned for its bright reddish color, malleability, and ductility which make it a good fit for making jewelry. The attractiveness and rarity of the precious metal is responsible for its use as a means of barter and store of value as early as 550 BC. Today, with the advent of more liquid fiat currency and other payment options, Gold’s use as a currency might have plummeted but it is still of remarkable value to investors seeking a less volatile asset class for portfolio diversification. However investment in the Gold financial market has been impeded by a couple of lingering issues including a high interest rate, strong dependency on the US dollar , security risk associated with storage at physical outlets, inability to properly track and account for the supply of gold in circulation, geographical restrictions and series of limitation associated with gold ETFs.

image from https://gold.storage/wp.pdf
The Digital Gold platform aims to provide the much-needed solutions for the gold market and encourage inclusiveness by considerably lowering the barrier and limitations most users often face when investing in gold ETFs or purchasing Physical gold. Due to the security risk associated with storage and the several restrictions imposed on gold investments, gold ETFs for a while looked like the best option but issues such as the limitation on purchase, constant inquiry into personal information’s and a host of others have further discouraged many from investing in Gold. The Digital Gold platform adopts blockchain technology hence offering tokenized tokens backed against 99.99% percent fine gold. The implementation of blockchain technology supports accountability, traceability and easy storage of the tokenized Gold tokens hence making the use, storage, transfer and trading of physical gold possible, efficient and available to all and sundry.
Core values of Digital Gold

  1. The Digital Gold platform token simply is known as GOLD allows users of the platform to seamlessly store the GOLD token in any ERC-20 compatible wallet. Each GOLD issued on the Digital Gold platform is backed by an equivalent of 1g of physical gold stored in the company vault, and the amount of gold in circulation is readily accountable and traceable with an insurance cover put in place to protect holders of the GOLD token. The use of GOLD token protects investors in gold from the dangers associated with storing physical gold themselves and as well avail them the opportunity to seamlessly transfer, buy, sell and invest in Gold without having to comply with local legislation, put up with trade limitations and rendering too much personal information.

  2. Liquidity has always been an issue when dealing with physical gold, this doesn’t imply that there is no active market for physical gold but rather the process of selling physical gold is slow, unprofitable and bedeviled by a host of local legislations. Unlike other financial markets of same valuation, selling off physical gold is most arduous but with the Digital Gold platform and use of the GOLD token, one can seamlessly sell-off even large amount of GOLD at any time and from anywhere in the world in a market open 24/7 without having to battle with restrictions. Asides from being available on notable Crypto exchanges such as livecoin, catex and coinsbit, the GOLD token can also be traded on Digital Gold Marketplace. The digital gold marketplace utilizes the Digital Gold company history as a liquidity supplier to provide the much-needed liquidity to facilitate the seamless purchase or redeeming of GOLD tokens directly on the website.

    The image is courtesy of https://gold.storage/en/market and it shows how easy it is to trade gold on the Digital Gold Marketplace

  3. Digital Gold also proposes an ideal way for crypto enthusiasts to hedge funds in a less volatile market. The advent of stable coins which are equivalent to fiat currency at the onset looked like a remarkable inclusion to the crypto market but with the latest discovery that USDT (which happens to be the most utilized stable coin) isn’t completely backed by its equivalent in fiat currency (dollar) has raised a lot of eyebrows. The lack of transparency and the constant issuance of USDT without a proper auditory system further reduce trust in the stable coin. In time past physical gold has outperformed fiat currencies in terms of market stability, hence making hedging in gold a more lucrative option for crypto enthusiasts in highly volatile market cycles. The digital Gold platform allows crypto enthusiasts to seamless move from the crypto market into the more stable market of gold with a highly transparent and verifiable system in which every single Gold token in circulation is accountable to physical gold held in the Digital Gold company vault.

In conclusion, the GOLD token will allow all and sundry to anonymously, securely, cost-effectively perpetuate transactions using physical gold without fear of limitations, government censorship and divulging personal data. Hence it’s safe to say the Digital Gold platform reduces the risk, difficulties and as well as barriers associated with investing in gold while also serving as a much-needed bridge between the crypto and gold market.
To learn more about Digital Gold, check out the links below;
Website: https://gold.storage/
Whitepaper: https://gold.storage/wp.pdf
Twitter: https://twitter.com/gold_erc20
Medium: https://medium.com/@digitalgoldcoin
Telegram: https://t.me/digitalgoldcoin
Author: mrsparks
Bitcointalk Profile Link; https://bitcointalk.org/index.php?action=profile;u=1197564;sa=summary

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