For thousands of years, gold has been the most valuable physical asset of humanity, or at least the most popular. This is not only because it is scarce and unlimited, as is also the case with bitcoin. It is also a precious metal that shines on its own and is used by the best craftsmen in the world to create precious jewelry adornment that multiplies its value.
Now imagine for a moment that you can access and move this precious metal without taking risks involved in its movement and public display. Well, this idea is already a fact and a reality, since the Paxos company has launched the Pax Gold (PAXG) token. Which works as a digital title for each fine troy ounce of a London Good Delivery gold bar. This is how Chad Cascarilla, CEO of Paxos, points out:
“Each PAXG is not a representation of gold, it is the legal title for each asset. This is the exact point of Blockchain technology, the exact premise, where you can now make assets easily mobilizable and divisible, so they would not have to be tied to a physical process”.
In this point, it is important to note that the gold bars that physically represent the property of those who acquire the PAXG token are stored in the Brink vault in the City of London, guarded by Paxos Trust company and that it also has the approval of the Services Department New York Financiers.
Even the official PAXG portal adds that:
“At any time, PAXG holders can search for the serial number, value, and physical characteristics of their vaulted gold simply by entering their Ethereum wallet address in the PAXG search tool at Paxos.com/paxgold”.
Check out this Complete Guide to Ethereum Wallets.
Likewise, the PAXG token may be physically exchanged for gold through associated and authorized entities, such as “Bullion,” an exchange based in New York. The CEO of Paxos indicated that new business partners would soon be incorporated in other parts of the world that will make this exchange possible in all corners of the Earth.
The most exciting thing about this stablecoin anchored to gold is that the owners of each ounce of Pax Gold tokens will be able to move gold anywhere in the world in seconds and without paying custody fees:
“This is a groundbreaking product in the history of gold … I can own the product without paying escrow fees, and I can ship it around the world 24 hours a day, seven days a week”.
Chad Cascarilla, CEO of Paxos.
It should be noted that this idea of stablecoin solves one of the main criticisms made of the decentralized finance sector. Since cryptos do not have a physical backing in gold as the Fiat financial world supposedly does, this project is the first to tear down this stigmatization towards the crypto-market since PAXG debuts as the world’s first cryptocurrency with gold reserves.
How much does PAXG cost, and how to get it?
At press time, the PAXG unit is valued at $1949.77, with a $56,735,797 market capitalization. Since PAXG represents physical gold, its value is directly linked to its real-time market value. It is essential to add that, as with most cryptocurrencies, fractions of the Token can be purchased. If you buy PAXG directly on Paxos.com, the minimum purchase is 0.01 PAXG (1% of a PAXG token, or approximately $15).
Regarding how to acquire PAXG, its official portal indicates that:
“PAXG is available to trade on the Paxos itBit exchange. PAXG will also be available on other cryptocurrency exchanges, wallets, lending platforms, and elsewhere within the crypto ecosystem”.
Something that is indeed happening since the official PAXG web portal already shows a list of physical and digital exchanges, associated, that every day makes the physical and digital convertibility of PAXG possible on a global scale.
What opportunity does PAXG represent for merchants?
As we have mentioned in previous articles, cryptocurrencies called stablecoins should not be underestimated as they can become a wild card for the most strategic traders.
Find out more about the number one stablecoin in the cryptocurrency market, Tether.
The fascinating thing about PAXG is that it is not just a stablecoin anchored to the fiat currency of the Dollar or the Euro. We are talking about a stablecoin anchored to the most credible and precious metal that has been in existence for thousands of years.
One factor to take into account is that before Bitcoin, Gold reigned as a long valuation asset. However, since Bitcoin’s birth, the fight is entirely on par between these two reserve assets.
So a stablecoin like PAXG turns out to be a better opportunity for cryptocurrency traders, especially those who do not want their investments to be secured in stablecoins, anchored to centralized government fiat currencies such as the Dollar and the Euro.
Check out this Beginner’s Guide & Basic Strategies for Trading Cryptocurrency.
If you are a gold lover, either as a precious metal or as a reserve of value asset, the stablecoin called Pax Gold is likely the best crypto investment option for you. This project aims to unify the best of two worlds, gold, one of the most asset prized in the history of mankind, and the versatility and commercial immediacy of the digital world represented in cryptocurrencies.
Disclaimer: This is a paid post and should not be considered as news/advice.
The post Pax Gold (PAXG): a Cryptocurrency that allows you to have Physical Reserves in Gold appeared first on AMBCrypto.
Pax Gold (PAXG): a Cryptocurrency that allows you to have Physical Reserves in Gold written by Akshay KS @ https://eng.ambcrypto.com/pax-gold-paxg-a-cryptocurrency-that-allows-you-to-have-physical-reserves-in-gold/ September 18, 2020 Akshay KS