Why do you need digital gold?
Digital Gold is trending. Why it is good to hold digital gold and hedge your investment digital gold.
Blockchain and Digital Gold
In the reality of blockchain article presented by Gartner, 2020 will be a big year for blockchain as the technology will unlock its full value proposition, including tokenisation. Blockchain has evolved over the last 10 years and will continue to evolve beyond 2030. 60% of CIOs are expecting some forms of a blockchain deployment, even though it will not be the focus.
So what is blockchain? A blockchain is a form of distributed ledger technology (DLT) that records information in an immutable and fully decentralised manner. It records the who, what and when of an exchange. Thus, creating a formal information system which can capture property rights without the concentration of power.
3 distinct benefits of blockchain
Blockchain reduces the cost and time needed to send money. In the case of remittance, blockchain enables currencies to be sent across borders at a lower rate in a matter of minutes. Ripple, for example, has effectively, transparently and securely facilitates international payments. Traditional companies are leveraging on Ripple to gain a competitive edge.
Blockchain enhances financial inclusion for the poor. There are about 1.7 billion people worldwide who are unbanked as of 2017*.
One of the main issues that are hindering financial inclusion is the lack of a digital identity. Blockchain introduces a decentralised approach to Know Your Customers (KYC). By storing user’s details on the chain and working with identification tools, blockchain propels efforts in financial inclusion through identity management.
Blockchain reinforces trust. As The Economist defines it; Blockchains are trust machines. All transactions recorded are transparent and immutable. In the digital world, trust in the market can be lost easily. Companies are turning to blockchain to secure and transfer assets in an automated manner. There is no need to go through a long process and human errors are eliminated. All records on the transactions are immutable. Small businesses, entrepreneurs and institutional investors can, therefore, trust the assets they invest in.
The Rise of Digital Gold
In 2017, the market was booming and highly volatile. Bitcoin, Ripple and Ethereum enjoyed much media spotlight as the world showed interest in owning cryptocurrencies. The market cap even reached over USD750billion at a point in time. A hedge is needed to protect these investments against the volatility.
A gold-back token offers the much-needed stability to the cryptomarket. Gold as a liquid asset, with low volatility, is one of the best options as investors foray into the highly volatile cryptomarket.
Historically, gold has been proven to be a safe-haven asset in times of geopolitical turmoil and economic uncertainty. In 2019, the gold prices reached $1,546.10 an ounce, the strongest notch in the last 10 year.
Yet it is plagued by these fundamental issues.
Issues with traditional gold
Storage issue — It is almost impossible to store a huge quantity of gold safely without worrying about storage. There are 3 ways in which you can store gold
- keep it in a safe at home,
- use a bank’s safe deposit box or,
- pay for third-party storage.
All of these will require additional fees.
Portability issue — Gold is heavy. Anyone would rather carry paper money of the same value, simply because it is lighter.
Divisibility issue — Divisibility was one of the reasons why precious metals such as gold were widely used as money throughout history. However in the current market, gold comes in the standard “sizes”, making it difficult to be used as a medium of exchange.
With DGX, digital gold is accessible to everyone in a highly secured form. It resolved the issues on storage, portability and divisibility. What comes to life is a gold-backed token that is portable and divisible; one that can be traded and stored with a stable of value.
What is digital Gold, DGX?
DGX is a gold-backed token, built on the Ethereum Blockchain, where every DGX token represents 1 gram of 99.99% gold cast bars from the London Bullion Market Association-approved refiners.
Every DGX token is minted on the Ethereum blockchain through an extremely transparent token creation process, known as Proof of Provenance (PoP). This process ensures that every DGX token minted is 1 gram of gold bar added to the vault. All documentation related to the gold bars is uploaded to Ethereum blockchain for the public to view on Digix’s asset explorer. Digix keeps the gold bar within highly secured vaults in Singapore and Canada
Check out this video to learn more DGX: https://www.youtube.com/watch?v=N-2R1vLDkRo
The benefits of a gold-backed token are manifold.
DGX is a stable store of value. You can buy and hold DGX token as gold is a time-tested safe-haven asset. An ideal currency to hedge against the volatility of crypto markets.
DGX offers a way to spend gold in a frictionless and borderless manner. DGX token is listed on popular payment wallets, Xwallet by PundiX and Monolith VISA card, making it easy for you to spend gold over 6 million locations globally.
DGX is cryptographically secure and transparent with our Proof of Provenance (PoP) Protocol which offers unalterable and tamper-proof records. Digix offers full visibility over digital ownership, transaction and inventory with records on quarterly audits.
DGX allows you to move gold across borders seamlessly. You do not have to worry about the fee associated with moving gold as the associated gas fee is minimal and transfer is almost immediate.
Unlike other gold-backed tokens or traditional dealers, Digix is not charging any annual storage fee. Storage fee associated with DGX is waived until further notice. Making it the most economical way to own gold.
How and where can you buy DGX?
You will be able to buy DGX at our marketplace or any of these 12 exchanges.
- Airswap — A free, easy token trading platform for beginners to experts. Users can connect their wallet, get the best available price, and execute trades instantly.
- BitFinex — One of the largest and most advanced cryptocurrencies exchange.
- Hotbit — Hotbit had listed 547 trading pairs in total and was ranked №3 among all exchanges regarding the number of types of cryptocurrency projects listed.
- Kyberswap — A fast and simple way to exchange DGX tokens. Offers competitive rates for over 70 tokens. Secured by the blockchain.
- Lucent Exchange — Lucent is a next-generation exchange market for direct trading in digital assets.
- Probit Global — A top-performing exchange with one of the world’s fastest processing capacities of 1,500,000 order matching per second.
- RadarRelay — An ethereum dApps leveraging the 0x protocol to offer the most secure way to trade ERC20 tokens from your ethereum wallet.
- Switcheo Network — Switcheo is the best decentralized Cryptocurrency Exchange to buy or sell Ethereum (ERC20), EOS tokens and NEO (NEP-5).
- Tokenize Xchange — Tokenize is a digital trading platform that aspires to build the next generation currency exchange that supports established and emerging digital currencies
- TokoCrypto — Southeast Asia’s leading exchange for digital assets by providing customers with an easy, simple, instant, and secure platform to transact with confidence.
- Uniswap — A protocol for an automated token exchange on Ethereum with A simple smart contract interface for swapping ERC20 token.
- VCC Exchange — VCC exchange features crypto-crypto and VND-crypto trading, which is supported in web, iOS and Android applications.
To facilitate the trading of DGX, it is available in 7 markets. You will be able to trade DGX with the currency of their choice.
At Digix, we believe each of you has the right to own and trade digital gold as a reliable form of money. Visit our website today to learn more today.
*World Bank, 2017
About Digix
Digix, incorporated in Singapore in 2014, is the blockchain company behind the world’s first gold-backed digital asset class. Digix uses blockchain to account for the authentication and provenance of 99.99% investment-grade gold bullions. Physical gold bars are registered on the blockchain, and every 1 gram of physical gold registered is pegged to 1 DGX token. The physical gold bars are kept in vaults located in Singapore and Canada.
Digix recently won the 2020 S&P Global Platts: Precious Metals Industry Leadership Award and was a finalist in the 2016 Singapore MAS Fintech Awards.
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At Digix, we appreciate feedback from the community, so do drop us a note at marketing@mailer.digix.global. If you have any question, do check our FAQ on https://digix.zendesk.com/hc/en-us
