Gold Backed Cryptocurrency and How it’s Changing the Way We Think About Finance
Gold, as a precious metal, needs no introduction. Dating back to the ancient Roman and Greek empires, gold was the standard payment method for products and services all along the original Silk Road. Years later when modern banking came to be, paper money backed by gold helped create a more efficient process known as the “gold standard.” Eventually, we abandoned that concept and since 1971, gold has been nothing more than a hedging mechanism against financial volatility. However, this long standing precious metal is having a renaissance of sorts due to gold-backed cryptocurrencies (e.g. PAXG) that are more relevant than ever in today’s global economic crisis.
Today, gold-backed cryptocurrency offers a safety net from inflated fiat currencies in addition to a powerful platform bridging the gap between those interested in moving out of fiat markets to the new world of digital assets.
Why would one want to own gold?
The above picture is Peter Schiff, an American stockbroker, financial commentator, and renowned “Bitcoin hater.” The point of this popular Twitter meme is to show that while Peter Schiff has been talking negatively about Bitcoin, it’s grown from $1 to $9,000 for 1 BTC. That is true, but meanwhile, he was right about the price of gold that remains the same, a true testament to the precious metal’s stability.
Simply put, gold is one of the most stable assets one can have, making it an incredibly safe place to store funds over the long term. Currency debasement and large scale financial collapse have happened many times in the past and we could potentially be on the brink of another bad event in the coming months. In times like these, it’s smart for people to keep their savings in gold compared to fiat money in a bank account.
On YouHodler we take this concept to the next level with tokenized gold savings accounts that allow for safe, stable growth along with the ability to play with those savings and earn even more via our Multi HODL tool.
Gold-backed cryptocurrency: the best of both precious metals and digital assets.
Thanks to the innovations of blockchain technology, it’s now more convenient than ever to own gold without the challenging aspects of actually owning physical gold. Popular gold-backed cryptocurrencies such as Pax Gold (PAXG) place legal titles to specific amounts of authenticated, real gold into a digital token. Hence, when someone buys a PAXG token they get the following:
1) Quick and affordable gold transactions across borders
2) Direct exposure to the price of real gold
3) Accessibility and cost-efficiency of traditional financial assets.
In the past, the challenges of buying, transporting, and storing physical gold were so vast, it scared many people away from exploring the option and thus, investors were missing out on all the benefits of gold ownership. Now today, with stablecoins such as PAXG, investors get all the benefits of gold prices without the laborious effort.
Try the Barbell Strategy with Gold and Bitcoin on YouHodler
With fiat currencies currently struggling to gain investor confidence, tokenized gold assets may be the new paradigm for hedging. On YouHodler users can earn interest in gold with our PAXG savings accounts. Here, users earn 8.2% interest each year with weekly payouts. Think of it as YouHodler giving you a small piece of gold every single week to add to your gold collection. In addition to PAXG savings accounts, users can also enjoy the benefits of crypto market volatility to profit.
- Use the Barbell Strategy to keep 80% of your PAXG assets in a savings account
- Convert the other 20% to Bitcoin (BTC) and open a Multi HODL position
- Capitalize on BTC’s volatility in either direction and profit. Then you can take the profits and convert back to gold (PAXG) to earn more interest.
Unlike owning physical gold in the past, owning PAXG on YouHodler has NO storage fees, NO additional expenses, NO insurance fees, or anything else. For people who are not yet fully knowledgeable of cryptocurrency but have a desire to move away from fiat, then a PAXG savings account is the perfect first step towards a renewed financial future.
This is a terrific opportunity to expand the digital asset community since gold transcends traditional and blockchain industries. To open up your PAXG savings account and start earning on digital gold, visit us at YouHodler.com today.