DIGITIZATION OF GOLD FOR THE MODERN MARKET

rosemary4u (33)in #gold • 5 years ago

Cryptocurrencies are valued at billions of dollars that are transferred across multiple exchanges everyday. In modern practice, it is very common to see some big exchanges providing fiat pairs for trading, other exchanges only offer crypto-crypto trading pairs. The main reason for this is simply due to the fact that providing fiat trading pairs involve an extensive time and resources to meet regulatory protocols. Since the introduction of the first cryptocurrency, the market has been growing steadily, with several digital coins being listed on exchanges on a daily basis. The crypto market has always been a volatile space. The situation on the centralised markets such as the global stock exchange market can easily affect the happenings of the crypto market. This can easily affect the coins and cause most cryptocurrencies to witness massive depreciation in value and price.

Stable Coins

On the crypto market, stable coins play a very critical role acting as the bridge or medium for both crypto-crypto and crypto-fiat pairs. Stablecoins also act as a shield against the fluctuations of price on the cryptocurrency market

In order to overcome the fluctuations on the market and to offer real solution to the challenges involved in the traditional regulations in providing fiat-crypto pairs, The majority of exchanges now offer Stablecoin trading pairs. This practice is very common with popular exchanges that have high trading volumes on a daily basis.

In simple terms, Stable coins are the group of cryptocurrencies that are usually pegged to $1. This implies that; the value of a stable coin is structured to have usually an equivalent of a dollar. As an advantage, stablecoins provides crypto users the chance to trade any cryptocurrency for a dollar equivalent without the use of a physical dollar or credit cards. This allows crypto exchanges to avoid all the regulatory clearances and protocols required to set up an actual fiat trading pair for traders.

DIGITIZED GOLD

For ages, gold has been used as a medium of exchange for goods and services. As civilization across the globe advanced, people begun to adopt fiat or coin & paper currencies. Fiat currencies offer convenience and ease. Especially the paper form of currencies are easily transported compared to gold coins. With the application of advancing knowledge and technology, there is still the challenge where most countries around the globe issue complete fiat currencies that are not guaranteed by any stable form value except people’s trust in the central government that prints them.

DIGITAL GOLD provides solution to the challenge of fiat currencies while maintaining the ease of transactions. The gold backed coin follows the concept of value-backed digital currencies. However, as the token is represented by GOLD, a means to transfer gold value through digitization. Hence, GOLD is one of the few asset backed digital currency.

As countries around the world may be careful in adopting the use of cryptocurrencies, the crypto markets is already in high spirit.

Unlike the common stable coins that are placed on the value of fiats, GOLD is backed by one of the most precious assets. The interesting thing about this coin lies in the resistance to political changes, that will ensure that it can easily be paired against many coins for trading without any challenges.

Digital Gold provide blockchain enabled transparency over the assets that are released in circulation. Popular stable coins like USD Tether face scrutiny over its security, this will be a pioneering step ensuring a stable coin is easily under adequate credibility and transparency.

CONCLUSION
Digital GOLD is changing the old-fashioned storage of gold into a modern utility through digitization. This would make gold readily available on the market for trading purpose.