Digital Gold - The role of gold in the modern and world of gold investing
Introduction
Technology is an unstoppable reality and continues to evolve despite everything. In a process accelerated by the addition of blockchain to our lives, development continues with the addition of new cryptocurrencies into our lives.
Over time, gold has occupied entire communities, forcing them to endure terrible hardships in hopes of gaining instant confidence. Over the centuries, gold has represented strength and wealth through its emotional impact and aesthetic qualities. In addition, for a long time he played an important role in the circulation of money in various countries.
In modern gold history, the 1970s are the most important starting point. So far, the global gold market has been free from government interference.
However, it cannot be said emphatically that after the signing of the Gold Treaty Jamaica ultimately lost its monetary function. Gold has lost its main function - it is an indicator of the value of goods and services and the medium of circulation. However, the monetary function as a means of accumulation, payment, savings, and the function of world money did not disappear, but only transformed.
This is due to the fact that during the appearance of the first world wide web, it became possible to use it as a means of payment. For example, the international payment system E-Gold, correspondent funds in some precious metals, especially in gold. This system is very efficient for international payments. Thus, with the help of this payment system, the function of gold as a means of payment is realized.
Inflation
Inflation means the amount you can buy with some money in your pocket continues to decrease. Inflation, especially in underdeveloped or developing countries, causes people's savings to be meaningless and disappear in a very short time. For example, a year ago, you could buy a new Mercedes GLA with 200,000 Turkish Lira in your pocket. If you still have 200,000 lire today after a year, you can't even buy half of the Mercedes GLA. The same applies to the price of fruit and vegetables or the price of houses and land.
Even though the amount of money in your pocket is the same, the amount you can buy, that is, your personal purchasing power, has dropped dramatically due to the high rate of inflation. The public has switched to various investment instruments in order to avoid this value loss, namely inflation. So what's the best investment tool?
Make your days as a financial asset.
Until recently, countries contributed to the preservation of precious metals how to trigger activation for a number of reasons:
- Diversification of official reserve assets.
A reserve diversification strategy is usually more robust than a strategy that focuses on a single asset type. - Physical protection
Foreign securities and funds can be burdened by foreign exchange controls, which completely or partially restrict their movements within the territory of the initiating country.
In this situation, we can talk about restrictions on access to their own resources, which are placed in the form of bank deposits and securities, on the territory of the country that initiated currency control. As a result, gold in the reserves of the national central bank has become a more reliable asset. - Economic security
In terms of the level of economic security, gold continues to dominate financial assets. Gold has more liquidity than any other "defensive" financial asset, because it can be sold at any time without major costs. - Insurance
Gold reserves can be considered as a kind of insurance compensation in situations of financial crisis, war, the collapse of the world monetary system, and natural disasters. Historically, gold has been an indisputable tool against unfavorable macroeconomic and political conditions. - Trust
Most people today have not lost the belief that gold is a valuable financial asset. Central banks in many countries also view gold as the most stable asset. Ownership of gold strengthens people's confidence in the currency.
Gold Shop Reliable Value
Due to its limited chemical structure and properties, gold has always been used as a store of value throughout human history. According to known history, people have protected their investment by investing in gold for more than 5000 years. Unlike many other stores of value on the gold market, the dollar continues to gain value even against leading currencies such as the euro. Crisis occurs in the world, everything decreases in value, but even in times of crisis, people's interest in gold never diminishes.
If we want to give an example by price, when you look at the gold / dollar chart for the last 30 years you will see that gold has gained more than 3000% against the dollar. In other words, it has increased more than 30 fold in 30 years. The FED dollar policy is also important here. The dollar was overprinted in 2008 and a similar crisis period led to high inflation and naturally people turned to gold as a safe haven. Since the Covid-19 pandemic and related crises began, we have seen that public interest in gold has increased. As of today, the price of gold has reached $ 411.
How Do You Store Your Gold?
There are various known methods of preserving gold. The first is to hide gold under the pillow in the house we love so much. After paying a number of pieces and getting the gold from the jewelery shop, you hide it where you think the thieves won't be able to find at home, but the results are often disappointing. Thieves today find your gold easily with the help of a detector and you lose all your investment.
Another widely used method is to store gold in a bank vault. The biggest disadvantage of keeping gold in bank vaults is that banks do not offer any collateral for this vault. This process is far from transparent and you have to pay high fees to banks for safe deposit boxes every year. Another method of storing gold in a bank is to buy gold grams specified in your bank account. The gold bet here consists of a digital number fully reflected in your account, which is far from being transparent. And the bank charges you high fees every time you want to make a transaction.
New Method of Investing in Gold: Digital GOLD
Digital Gold has made contracts on the ethereum network so you can invest in gold easily and at low cost and create ERC-20 based GOLD tokens based on this contract. The blockchain network is basically a very transparent network. Every transaction made on the network can be seen and controlled by anyone. At the same time, you don't have to share your credentials, because only the wallet address can be seen on the network, no one will know that the wallet belongs to you unless you reveal your identity. This is an important privacy feature that the ethereum network offers us.
Each GOLD token created has a value equivalent to 1 gram of gold with a purity of 99.99%. When you buy a GOLD Token, one gram of gold exchanged for this GOLD token is added to the vault contracted from the company Digital Gold, which I mentioned in my previous article. These numbers of vaults and GOLD Tokens are audited monthly by law firms that have agreements with the company and are shared publicly.
How to Buy GOLD Tokens?
If you want, you can buy and sell GOLD tokens in minutes through the Digital Gold marketplace itself, https://gold.storage/tr/market. You can also trade through contracted exchanges, but I prefer to trade on their own market.
What you need to do to buy or sell GOLD Tokens is very simple and doesn't require any technical information, so you just need to have an ethereum or bitcoin wallet.
Stages of purchasing GOLD Tokens:
- You have to buy ethereum or bitcoin by getting an Ethereum wallet.
- Enter the amount you want to buy via https://gold.storage/tr/market (BTC / ETH)
- Send money to the address given to you within the specified time after pressing the trade button
- After that, the smart contract will send your GOLD tokens in seconds. As long as you don't share your wallet private keys with anyone, your gold investment will remain safe.
Conclusion
As stated above, gold tokens are designed to function as stablecoins pegged to the price of gold. Stablecoins are usually pegged to assets or currencies, but are backed by collateral.
That is, the number of coins issued into circulation is directly supported by purchases stored on company resources. As such, gold tokens are protected from high market volatility, and their value remains constant over time.
For many people, precious metals alone cannot play the role of money very well.
But precious metals seem to have all the characteristics one would expect from money: a stable account, long-term reserves of value, and a good exchange interface. These metals are complex and resources are limited.
They don't disappear over time, which is why they are a good investment vehicle: by buying virtual gold from a reliable company like Digital Gold, you can easily access your capital.
Link Address:
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► Author: Gedang_goreng
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