The Digital Gold: A Stable Coin Backed by Gold
From the beginning of human civilization, humans searched for a trustworthy “Medium of exchange.” Since then, we have seen many media for exchange. We can name for metals, paper, cowry, etc. In 2009, Bitcoin familiarized us with cryptocurrencies. After the success of Bitcoin, many stable coins are introduced. Most of them are backed by US Dollars. Few of them are backed by Gold and has no popularity. Today I am going to introduce you to Digital Gold. Before learning about Digital Gold, we will read a summary of Gold history.
History of Gold
Gold is one of the Noble Metals in the Periodic Table. In the early history of humans, humans worshipped gold. They equated Gold with God. In 700 BC, gold appeared as currency for the first time. Ancient Greeks, Romans, Egyptians rushed for gold. In modern times, we don’t see gold as a currency. But almost all currencies by the central banks are backed by Gold.
Gold in CryptoCurrency World
It’s late, but many Gold tokens were introduced to us. Though most projects failed, they couldn’t prove their word. Let’s know some details about some Legit projects backed by Gold.
Probably the world’s most used token, which is backed by Gold. The issuer of fiat-pegged USDT tokens issues XAUT. To invest in XAUT, you must need a verified account in TG Commodities Limited, and their minimum investment amount is 50 XAUT, which is equivalent to 95000$. This enormous amount of investment is not friendly for investors with a limited amount.
- PAX Gold(PAXG)
Currently, PAXG is a competitor for XAUT. They have a minimum investment of 0.03 PAXG(0.02 PAXG conversion fee). At the current exchange rate, it’s equivalent to about 5$.
- Digital Gold(GOLD)
The Digital Gold is the first 100% Liquid stable coin, which is backed by Gold. There is no need to put any email or other personal information to invest in Digital Gold. Their minimum investment amount is 0.001 BTC and 0.01 ETH.
Let’s dive into details about Digital Gold and it’s advantages.
Digital Gold: The First Liquid Stable Coin
Digital Gold is an ERC-20 token. It is a blockchain-based project which empowers users to store their assets in physical Gold. They also enable you to buy and sell their token through their marketplace. Each GOLD token represents one gram of 99.99% fine Gold stored in their vault. They store Gold in Bullionstar’s vault in Singapore. Singapore is well known for its substantial legal property rights.
Let’s look at some vital information regarding the GOLD token.
Name: Gold Storage
Ticker: GOLD
Explorer: https://etherscan.io/
Contract Address: 0x0d16450d347c12c086d6c94c76c5aaac35ea07e0
Official site: https://gold.storage/
Decimals: 3
Total Supply: 19,177.058(Changes by time)
Features
Digital Gold has several unique and attractive features to consider. Let’s discuss some key features.
- No Extra Fees
There are no fees for transactions except Ethereum Gas Fees. You can hold GOLD as much as you wish to hold. You can also do an unlimited transaction. To provide sustainability, they charge a 0.99% annual storage fee.
- Secure
Digital Gold is an ERC-20 token. All transactions are stored on Blockchain. On the other hand, Digital Gold is 100% backed by pure gold. The total supply of GOLD tokens and the total value of stored pure gold can be verified in real-time with BullionStar’s Live Audit Reports. Visit the following sites and compare both Total Supply and Total Value stored in the vault.
https://etherscan.io/token/0x0d16450d347c12c086d6c94c76c5aaac35ea07e0
- Privacy Conscious
I have already discussed it. Other stable coins require your private data if you want to invest. But Digital Gold doesn’t want any information. Even they won’t take your Email if you buy GOLD through their marketplace. You need your Bitcoin/Ethereum wallet to pay and receive. This feature differs from Digital Gold to other competitors.
- High Liquidity in the Market
Digital Gold LTD, the token issuer company, provides liquidity in the market. So you can buy or sell a large number of tokens without worrying about price volatility.
- Secure and Anonymous Ownership of Gold
If you want to hold gold physically, you have to worry about the store, safety, etc. But if you hold GOLD tokens, you don’t need to worry about these problems. All of your tokens are insured by one of the world’s largest insurance specie underwriters, Chubb Insurance. Also, you can hold tokens in your Ethereum wallet without disclosing your identity.
These extraordinary features tell you why you should invest in Digital Gold.
Why do you need to Choose Digital Gold over USDT and other Stable Coins?
After reading the previous points, you might ask this question. USDT is accepted in all exchanges available now. You might not be interested in choosing another stable coin. But you need to know the history. What happened with the USDT holder? Tether’s parent company Bitfinex failed to show audits from time to time. On 30 April 2019, Tether’s lawyer claimed that each USDT is backed by 0.74$ only. On 20 November 2018, Bloomberg reported that US federal prosecutors are investigating Tether in the acquisition of manipulating the price of bitcoin. Even Tether admits that they don’t fully back USDT by USD.
The controversy does not end here. Your Tether can freeze your asset or reverse your transaction upon request by the government or other institutions. In September 2020, Tether froze $33 Million worth USDT hacked from Kucoin Exchange. Almost all of the stable coins can freeze your assets. You can watch a short review of them in the image.
Disadvantages or Difficulties
Nothing in the world is free from disadvantages. Also, you may feel the process too difficult for you. Let’s discuss them.
- You mind the process difficult if you are new in the Cryptocurrency world.
- You can’t buy GOLD with fiat currency. But they can’t ensure anonymity if they want to add the option to buy with fiat currencies.
- They have 0.99% annual storage fee(0.0027% per day). This fee will be automatically deducted from the holder’s wallet by the secure and audited smart contract.
After Comparing all the features, the disadvantages are ignorable.
Conclusion
If you want to hold your asset for a long time, Digital Gold is the best choice. But if you are a regular trader, you might not be interested as GOLD is not listed in big exchanges. However, it would be best if you considered the past controversy of your favorite stable coin. Digital Gold Coin will be your first choice if you want a fully backed, audited, secured stable currency.
Reach Digital Gold
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Ethereum Address: 0x645Cbd7621eEe817d568aF1c8cd4EF8ca27976Cb
