What is Crypto Gold (and should you buy it?)
For centuries, gold has been the primary global asset to hedge against risk and in 2020, investors are interested in it more than recent memory. However, creeping behind all the gold hype is a new player in the game, called it crypto gold, digital gold or whatever, gold-backed stablecoins are an ushering in a new era of fiat-haters looking for a convenient hedging alternative.
What is crypto gold?
Simply put, crypto gold is just a cryptocurrency backed by gold. Pax Gold (PAXG) is one of the most popular options among investors. Each PAXG token represents one fine troy ounce of a real London Gold Delivery gold bar stored ina highly secure professional facility. If you own PAXG, that means you now have ownership rights to that gold verified by the Paxos Trust Company. Since PAXG is backed by gold then it means its value is also tied to real-time marker value of real gold.
What is the benefit of owning digital gold?
If owning real gold isn’t cool enough, then think of it this way. Owning digital gold gives you the amazing benefits of being a real gold owner without the physical burdens of gold itself. Think about it. Carrying, storing, and paying with gold is just not that convenient. Hence, digital gold offers you more speed, efficiency, and mobility since it’s entirely digital and exists on the blockchain like other cryptocurrencies (e.g. Bitcoin (BTC). If you want to convert your gold to fiat (e.g. USD, EUR) or other cryptocurrencies, that can be done in seconds on any major crypto exchange. That’s much easier than exchanging gold in real life.
Earn interest in gold via stablecoin savings accounts
Another cool feature that’s catching the eye of many investors is gold savings accounts. FinTech platforms like YouHodler offer PAXG savings accounts where users can earn 8.2% interest in their PAXG deposits. Interest payments are sent out every week, which is like receiving a little pile of gold each week to add to your new gold collection.
Unlike owning physical gold, earning PAXG on the aforementioned platform has NO storage fees, NO additional expenses, NO insurance fees, or anything else. For people who are new to cryptocurrency but have a desire to move away from fiat, then a PAXG savings account is the perfect first step towards a renewed financial future.