How To Buy Gold using the Blockchain
So probably you will like to invest in some asset like gold,when you say gold is valuable and you will like to invest in gold and wait,have you weighed the pros and the coins
Pros
A lot of people say gold is ,stable,some say it’s valuable and you can give it to somebody and the person will truly appreciate you for giving them a gift,how about the high liquidity for gold and the potential for high profitability
Cons
Where can I buy gold? Is it really easy to locate a place where you can buy gold?
Who will sell to me? Unlike cryptocurrencies and other items,there is really no P2P market for gold.
When can I buy? can I buy gold at any point in time, or are there time constraints on users.
Security? If I bring gold to my house,can I safely store it without the fear of been robbed
Privacy? Can I keep my privacy and still keep my gold safe
Kyc ? the issue of filling a lot of documents,
Time and cost constraintsIt takes a lot of time and cost to do this
That prompted the digital gold project,it’s a project that centres on how do we bring technology to make the purchasing and trading of gold very very seamless and to accomplish this the team went about employing the blockchain technology,
To someone who is not familiar with blockchain technology,it’s the engine or technology behind cryptocurrencies like bitcoin,ethereum,ripple XRP and a host of others
While cryptocurrencies are very good ,they still have a few drawbacks
Pros of cryptocurrencies
Speed : they are fast
Cross border :Transactions are not affected by borders and country limitations
Cheap : offer cheap transactions at almost the fraction of the cost
Profitable : investing in cryptocurrencies can sometimes be very profitable and sometimes not profitable
Cons
Volatility : What if you bought a digital asset few months ago for $10 and today it’s worth less than $1,will you be happy with such change,the answer definitely is NO
Storage : Also there is the problem with the storage of digital coins,there is always the fear of been exposed to hackers and thieves,another issue centers around the possibility of losing one’s own secret keys
According to the fundamental design of cryptocurrences,assets on a blockchain platform are visible to all(the user have a public key,also called a wallet address) where anyone across the world may send them messages,payments or data and a private key where only the owner of the wallet address can make changes to the account like spending the received coins,sending out messages etc
According to a recent study,over 20% of all bitcoins are held in wallets whose owners have either died without transferring their private keys o their heirs or relations or the owners have lost their private keys
So how do we marry the benefits of blockchain with an asset like gold,the answer is digital gold
The digital gold platform builds on the ethereum blockchain platform using the ERC 20 token standards,we map 1 gram of gold to 1 gold token,,meaning if you have possession of 1 gold token you have 1 gram of gold securely stored in the digital gold vault
Apart from been a token for gold,it’s a stablecoin,a careful introspection of the stablecoin ecosystem,one will see that there exists different types of stablecoins,we have the likes of USD TETHER pegged to fiat currencies,those pegged to other crypto assets like MakerDao and those pegged to real world assets like gold,silver or precious metals with the digital gold token been one of them.
Features of the digital gold token
1.Low cost : You can actually get to purchase gold at a very very low cost and low transaction fee
2.Safe haven : it provides to you a safe haven where you could diversify your investment portfolio with one of the safest and less volatile manner
3.Secure ownership : It gives you secure ownership of gold,it takes away the fear that comes with owning and keeping gold at home,you get to purchase and own gold virtually
4.Privacy : it offers you privacy and you get to own gold with less paperworks and legal hurdles
5.High liquidity : when it comes to the selling of gold,there is high liquidity for the gold token
Now,you can purchase gold from the comfort of your home using only an internet connected device like your laptop,tablet or mobile phone
Exchanges
Gold token is currently been actively traded on the Bitforex cryptocurrency exchange
Learn more
https://gold.storage/en/home
https://gold.storage/wp/White_paper_en.pdf
https://t.me/digitalgoldcoin
https://twitter.com/gold_erc20
https://steemit.com/@digitalgoldcoin