Gold-Backed Cryptocurrencies in recession
The recession is a difficult and trying time for individuals, businesses, and the economy as a whole. It can be especially challenging to navigate financially, as unemployment rates may rise and markets may fluctuate unpredictably.
In uncertain economic times, consider turning to these top 5 gold-backed cryptocurrencies as a way to hedge against recession and protect your wealth.
Gold-backed cryptocurrencies are digital assets that are backed by a physical reserve of gold. This means that the value of the cryptocurrency is tied to the value of the gold reserve and can potentially offer a stable store of value.
Some investors see gold-backed cryptocurrencies as a way to diversify their portfolio and hedge against inflation, as the price of gold tends to be less volatile than other assets such as stocks or real estate.
Having fiat cash or liquid cash is important since it enables you to live well. But in times of recession, liquid cash can become useless very fast. The same applies to volatile assets. Getting pure physical gold can be quite difficult and that is why diversifying into gold-backed crypto is the next best thing. So here are 6 top gold-backed cryptos to try out in 2023.
Tether Gold (XAU₮) is a digital asset that is issued by Tether on the Ethereum blockchain. It is backed by physical gold, with each XAU₮ token representing one troy ounce of gold. Tether Gold is designed to allow users to store, send, and receive gold in a digital form, and it can be used as a store of value or a medium of exchange like any other digital currency.
Paxos Gold (PAXG) is a digital asset that is issued by Paxos, a financial technology company based in the United States. Like Tether Gold, Paxos Gold is backed by physical gold, with each PAXG token representing one troy ounce of gold. Paxos Gold can also be used as a store of value or a medium of exchange like any other digital currency.
The GoldCoin is an ERC-20 cryptocurrency backed by physical gold. GoldCoin is unique from other gold-backed cryptocurrencies because 1 GLD is equal to 1/1000th of an oz of pure gold. This effectively makes it the first-ever fractionalized gold-backed asset.
You can buy GLD directly in national fiat currencies or you can exchange it for other cryptocurrencies. The price of GLD is $1.85
Algorand is a public blockchain platform that is designed to be scalable, secure, and decentralized, and it has been used to issue a number of digital assets including Meld Gold. According to Meld Gold, MCAU is the world’s highest-performing digital gold token.
Apart from Gold, Meld Gold also has digital assets for Silver, Platinum, and Palladium. 1 MCAU is equal to a gram of pure gold and is fully redeemable for gold bullion.
Perth Mint Gold Token (PMGT) is a digital asset that is issued by Trovio in collaboration with The Perth Mint, a government-owned mint in Australia. It is backed by physical gold, with each PMGT token representing one troy ounce of gold.
Perth Mint Gold Token is issued on the Ethereum blockchain and is fully collateralized and redeemable for physical gold. Additionally, PMGT is fully backed by the Australian government, which adds an extra layer of security and trust to the asset.
Digix Gold Token (DGX) is a digital asset that is backed by physical gold. It is issued by DigixGlobal, a blockchain company that is based in Singapore. DigixGlobal uses blockchain technology to create digital assets that are backed by physical assets.
Each DGX token represents one gram of gold, and the gold is stored in a secure vault in Singapore. DigixGlobal uses the Ethereum blockchain to issue and track the ownership of DGX tokens. Moreover, the company has implemented a number of security measures to ensure the safety and integrity of the tokens.
In addition to DGX, DigixGlobal also offers other digital assets that are backed by physical assets. A good example is DigixDAO (DGD), which is a decentralized autonomous organization that is backed by DGX.
Hedging using gold can be wise because gold is considered a safe haven asset, meaning that it tends to hold its value or increase in value during times of economic uncertainty or market volatility. Additionally, gold has a low correlation with other asset classes, which means that it can provide diversification benefits and help to reduce the overall risk in an investment portfolio. Invest wisely and do your own research before investing in any project.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.
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