GOLD — the new gold cryptocurrency standard
12.08.2022 | mnalilovich
For many centuries, gold has acted as an instrument of wealth accumulation, as well as a means of payment and confirmation of its status. Now this precious metal has found its application in medicine, electronics, and other industrial fields. However, gold has not lost the role of reserves and accumulation of value. If we take into account that the amount of metal on the planet is limited, and the need for it is only increasing, then we can say with confidence that in the future the value of gold will only grow.
How to accumulate a gold reserve
Back in the first half of the last century, many national currencies had the so-called “gold standard” in their collateral. Relatively speaking, each unit of money could be exchanged for a previously known amount of gold. However, with the development of industry, economy and global trade, financial regulators decided to abandon this approach.
Now there are several ways to create your own “gold reserve”:
- buy gold bars,
- investment coins,
- depersonalized bank accounts,
Each method has its advantages and disadvantages. Only an impersonal account allows you to buy fractions of a gram of precious metal, while the rest are limited to measuring units. And if we talk about jewelry, then there are fewer problems with their purchase, however, the cost of their sale on the secondary market may be several times lower than the original price.
Digital GOLD — secured ERC-20 token
With the development of cryptocurrencies, another opportunity has appeared — these are secured cryptocurrencies, where gold acts as a reserve. There have been several attempts to create a stablecoin of this kind, however, most of them failed for one reason or another.
One of the main problems of the cryptocurrency gold standard was security. The peculiarities of the organization of cryptocurrencies did not allow, for example, to attract enough computing power to ensure the smooth operation of the network, which led to 51% attacks. And here Ethereum came to the rescue, with its token standard ERC-20.
This is how the token from the Digital Gold company appeared. The peculiarity of this cryptocurrency is that each of its units is provided with physical gold of 999 samples, located in a secure vault in Singapore. The actual collateral can always be viewed on the official website, where the documents confirming the deposit are posted.
Thus, users have the opportunity to purchase depersonalized physical gold without having to resort to the services of banks. The storage of precious metal is also simplified. The wallet address, as in other cases with cryptocurrencies, can be stored in various ways that prevent the possibility of access by third parties.
Features of Digital Gold
The main advantage of the GOLD token is the transparency of the collateral, which not all secured cryptocurrencies can boast of. You can also highlight:
- the possibility of buying a part of an ingot of almost any size,
- no commission for storage and transfer within the limit,
- ease of diversification of the investment portfolio,
- a fairly large amount of liquidity available around the clock.
You can see the current information whether the GOLD/USD trading pair is available for purchase or sale on our exchange here.
Official website: https://gold.storage/ru/home
White paper: https://gold.storage/wp/White_paper_en.pdf