10 reasons why DGX is a better form of gold

Photo by Andrea Piacquadio from Pexels

1. Gold is on the rise globally against the backdrop of economic and geopolitical uncertainty.

Against a global backdrop of deteriorating trade relations between the United States and China, as well as Brexit, climate disasters, health scares, and Hong Kong’s ongoing political situation, 70% of American economists are predicting a US ​recession by 2021, while the United Nations has estimated that there may be a global recession ​this year​. This has caused panic amongst investors globally, prompting them to search for asset classes uncorrelated with traditional markets. Gold stands out as an obvious choice due to its safe-haven status — and jumped 20% in 2019 as a result of economic and geopolitical uncertainty leading investors to diversify their portfolios.

2. Traditionally, gold has not been viewed as a means of payment or currency, but it will be.

While gold was used as a means of exchange in the past, fiat has changed the way it is perceived by consumers. Although fiat can experience short-term volatility as the result of consumer confidence and is subject to value fluctuations in the long term as the result of inflation. The effects of inflation are easy to ignore as consumers see the nominal value of fiat as opposed to its “real value” (purchasing power), which diminishes over time.

3. In Southeast Asia, gold has deep-rooted value and history and there is a major resurgence in ASEAN.

As demand for gold rises globally, few regions showcase the potential of the gold market as much as Southeast Asia. Gold consumption in the 10 ASEAN countries reached ​309 tonnes in 2018, making it the third-largest market for gold globally, after China and India. Demand is ​especially strong in Indonesia, Thailand, and Vietnam — which together account for over 80% of SEA’s gold market.

4. The region is home to one of the fastest rates of digital payments adoption — cryptocurrencies and non-traditional payments feature prominently.

Simultaneously, Southeast Asia is embracing the future of finance, with ​61% of Southeast Asian consumers now choosing card over cash. Meanwhile, the adoption of digital payments in the region continues to rise and is forecast to grow to more than ​$1 trillion USD by 2025​. The region is slowly introducing alternative financial payments with growing numbers of merchants accepting cryptocurrency and non-traditional payments.

5. While there is still demand for traditional investments, there is an increased need for them to evolve if they are to attract modern consumers​.

Today, whether it’s paying a bill with a touch of your finger or buying a coffee with a tap of your watch, innovations in finance have transformed the way we spend, send, and invest — making these daily transactions easier and more convenient than ever. Despite these developments, ​recent gold spikes showcase that there is still a place for traditional assets and investments in a digital world​. However conventional methods of purchasing, securing, and storing gold do not meet the demands or expectations of modern investors.

6. Digital gold is providing users with a better form of money that is fit for a digital age,

Digital gold overcome conventional issues of inconvenience, security, and insurance to present greater utility and liquidity to holders. Digix’s DGX represents 1g of 99.99% investment-grade gold bullions. It is a new, better form of gold — one fit for a digital age, unlocking new potential for gold to serve as an accessible investment vehicle and a means of exchange which is backed by stable and enduring value.

  1. Digital gold overcomes issues of ​divisibility, convenience, and safety related to traditional bullion which have limited its appeal to investors. Digix eliminates the inconvenience and security issues associated with storing, carrying, trading, and spending gold. Tradeable online, DGX makes paying with gold as easy as using a credit card, giving gold greater utility and liquidity.
  2. Digital gold tokens also open up the bullion market to far greater liquidity than they have previously enjoyed, with DGX tradeable on 12 partnered exchanges.
  3. Gold dealers and traders can benefit from digital gold as it uses blockchain technology to record ownership. Blockchain’s immutable ledger is more impervious to hacking and tampering than any alternative database — meaning that dealerships and their clientele are safer with DGX than with traditional gold.

7. Save easily with the world’s most time-tested asset class.

Gold is often more stable than emerging economies’ fiat currencies and free from the risks of hyperinflation or political instability. With complete online onboarding and mobile accessibility, Digix opens up new possibilities to earn, save, trade, and even lend for some of the world’s most vulnerable people — all with the benefits of a deflationary asset class and the immutable nature of blockchain technology.

8. Everyone has access to gold through DGX.

Digix believes everyone should have the right to purchase and own gold. Due to the cost traditionally associated with purchasing gold, it has historically been the exclusive domain of financial institutions and high-net-worth-individuals. Accessible to anyone with an internet connection and a smartphone, Digix reduces the barriers to entry to the gold market and democratises access for those previously excluded from it.

9. DGX is not paper gold. It is backed by physical gold, trusted with the transparency, security, and traceability of blockchain.

Gold is an eternal symbol of trust, a familiar investment with value that can be seen and easily understood. With the transition from physical to digital gold, it’s natural that questions and concerns arise around trust, assurance, and security.

10.Digital gold bridges the worlds of traditional finance, investments, and emerging technologies.

As the region develops a new global economic architecture based on mobile and digital-first systems, a new type of currency​ is needed.

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