Explaining the concept of digital gold to a layman would be telling them that instead of the conventional way of transporting gold to and fro from different locations and receiving payments for it through cash or a cashless means, tokens that represent real gold are purchased instead by digital gold users and this purchase is carried out online on the Blockchain network.
This is because users prefer hiring a third party that will take care of the complexity of buying and storing actual gold. Each coin of the gold tokens purchased is equivalent to 99.99% of physical gold stored in the company's vault. In previous times, an average person could only hear about gold and aspire to own it. This aspiration unfortunately could not be backed by the means to acquire the asset.
The chances of purchasing this gold were relatively low, with the high cost attached to it. It could be said, then, that only the rich, wealthy, and powerful individuals had the means to acquire gold and secure it in a safe place; this is a result of the fact that procuring, storing, and even transporting physical gold can be very stressful and complicating.
In tackling these issues, digital gold has made known that the best alternative for exchange-traded funds is purchasing tokenized gold. And this can be easily purchased on the Digital Gold Marketplace. And through this method, users are assured of not losing their accounts and are allowed to trade without revealing their identities.
What do users stand to gain when purchasing this gold?
When gold is purchased through its tokens, users gain the following advantages:
- Assurance of stability in the long run and coverage in physical gold can serve as a protection against future poor market changes and conditions.
- Trading at a low cost: The gold tokens are purchased at a less expensive price compared to what an actual gold would be acquired at and there's also the zero cost of transferring the gold tokens all thanks to the Ethereum ERC-20 support which users can use to transfer tokens to anywhere in the world.
- Safe sense of ownership: The challenges of owning gold which may include the inability to find a trustworthy distributor, unavailable storage space, complicated legal procedures that require much paperwork, etc, are being tackled by digital gold as the gold purchased for every token acquired is secured by the company in vaults and being that all physical gold is insured, users are confident that the risk will be reduced or kept at bay. Blockchain technology has also inspired trust as its system has been able to provide security for users against cybercrimes and issues that may want to occur.
- Available liquidity on-demand as trade can be carried out 24/7 round the clock with its price rates always in sync with the gold market price range.
- Guaranteed longevity as users can bask in its survival through the years hoping that it will remain valuable for years to come.
Conclusion
It will be negligence to see a good opportunity and let it go because we are unsure and uncertain. The digital gold has simplified the acquisition of gold and has even ensured that its security will be guaranteed. The unique idea behind Digital gold has given room for people who could only dream of being gold owners to aspire more, this time with the means for acquisition as well so it will only make sense to take advantage of this and create a future with gold in the digital market place.
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Author: Lordrift