Blockchain and Gold: A Match Made in Heaven for Investors

Blockchain and Gold: A Match Made in Heaven for Investors

Gold and blockchain are two words that have become increasingly popular in the world of finance and investment in recent years. While gold has traditionally been considered a safe asset, blockchain technology is a distributed ledger that allows for secure and transparent record-keeping of transactions. The intersection of these two fields has the potential to revolutionize the way gold is bought, sold, and traded, offering several potential benefits to investors.

One of the most significant potential benefits of using blockchain technology in the gold market is increased transparency. Earlier, the transprency of Gold has been not so much open to the owner with little information available about the origin or history of individual gold bars. This situation lacks the transparency and has made it difficult for investors to ensure that their gold is pure or ethical, or that it has not been involved in money laundering or other illegal activities.

Ultimately the concept of buying Gold with the help of Blockchain came into the spotlight in 2017 when Bitcoin and Gold has the same price. The gold pegged cryptocurrencies experiences less volatility when compared to the other famous cryptocurrencies. So the interest of investors has been shifted to opt for something which is as stable as Gold. There are many gold blockchain crypto’s which you can buy for the stability.

Benefits of Gold & Blockchain Combined

– By contrast, blockchain technology allows for instant settlement and the reduction of transaction costs. Digital gold platforms like Paxos and Tradewind Markets use blockchain technology to facilitate the trading of digital gold tokens, which are backed by physical gold stored in a vault. These tokens can be traded 24/7, allowing investors to buy and sell gold whenever they wish.

– Another potential benefit of using blockchain technology in the gold market is increased accessibility. Gold has traditionally been seen as a luxury asset, with high barriers to entry in terms of cost and availability. By contrast, digital gold can be bought and sold in small fractions, making it more accessible to a wider range of investors.

– Furthermore, digital gold can be held in a digital wallet, making it more convenient and secure than holding physical gold. This accessibility and convenience make it more likely that investors will consider gold as part of their investment portfolio, potentially increasing demand for the precious metal.

Famous Gold Backed Cryptocurrencies –

– Tether Gold

It is also conmsidered as the most famous Stable Coin in the world. It was introduced in 2020 and currently having the Market Cap of US$160 million. The Tether gold also offers the services to exchange their crypto for physical gold or cash.

– Meta Gold

Meta Gold is an Australian tech start up which has partenered with the ALgorand. It can be traded in the company platform and integrated into the gold supply chain running currently. This enables the users to obtain the instant gold trading and settlement via the tokenization. One can also trade virtual gold token without buying physical gold.

– Anthem Gold

It has been developed by the Anthem Vault Inc. It offers tokens which is backed by 1 gm of physical gold. It is fully secure and transparently monitored by the operator. It was launched in April 2019 and avalable in Anhthem Gold Edge Wallet.

The above mentioned are the most used gold backed crypto’s. There are other gold backed crypto’s also available like- DGX, CTLX, PAXG, GLC etc.

Conclusion

In Conclusion , these are recommended by the investors who are interested in owning the gold. As the revolution of gold and cryptocurrency has just been started, there are many aspects of it which needs to be talked in the world by the people.

Leave a Reply

Your email address will not be published. Required fields are marked *