StormGain_crypto
Published in

StormGain_crypto

Inflation Is Boosting Interest in Gold Tokens

Mine your own CRYPTO for free right now!

The Bitcoin rally of 2020 was caused by institutional investors who expected the U.S. dollar to lose value. The cryptocurrency is still seeing a 300% profit year-over-year, but its recent setback has pushed some investors’ interest towards tokens pegged to gold.

Despite the optimism of U.S. Federal Reserve Chairman Jerome Powell, inflation continues to grow above market expectations, hitting 5% year-over-year in May.

Prices are rising on everything, including food, construction materials and real estate. Meanwhile, some industries are experiencing a labour shortage, which is causing wages to grow. That, in turn, is further accelerating inflation because workers are earning more and thus spending more on services and products.

A number of investors are scared of Bitcoin’s volatility, preferring tokenised gold instead. Gold tokens are issued in the ERC-20 standard, which gives them protection and a high degree of cryptographic protection. Until recently, the token issued by Tether was in the leading position before institutional demand pushed PAX Gold to first place.

PAX Gold was issued in September 2019 by Paxos, a company licensed by the New York Department of Financial Services. According to data compiled by Arcane Research, the token’s capitalisation sits at over $263.3 million.. Every purchased token is backed by physical gold and is held separately from the company’s assets.

Investors are looking for ways to protect themselves against inflation. One traditional way of doing so is by investing in gold, which has more liquidity and smaller commissions compared to an unallocated metal account (UMA). Inflation growth will cause another rally in the precious metals market, and the 3,000% growth gold tokens have seen over a year and a half confirms the interest in this asset class.

The StormGain Analytics Group

Useful links

Register in StormGain today and get a 25 USDT bonus here

Buy, sell and exchange Dogecoin here

The original story was published on the official StormGain site blog

Find all the answers and StormGain community here

Learn about StormGain more on the website: https://stormgain.com/

Telegram: https://t.me/StormGain

Twitter: https://twitter.com/StormGain_com

DISCLAIMER: Any opinions, news, research, analyses, prices, or other information contained on StormGain_crypto is provided as general market commentary and does not constitute investment advice. StromGain_crypto, StormGain, its employees, partners, or contributors will not bear any liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

The article contains affiliate links.

--

--

--

We are all-In-one crypto platform. Trade, exchange, and mine crypto. Use our Cloud Miner for free to craft your own Bitcoin.

Recommended from Medium

#1 What Is A Crypto Synthetic Asset?

“The Key to The Future Is A Bridge to The Past”

Jenny’s Pool Parties are live!

Binary.com Review 2020- The Ultimate Guide To Smart Trading

A Decentralized Ethereum Based Ecosystem Marketplace

Totem OS 1.01 Launch — It’s almost here 🦾

What is ZK-Rollup? Why is Veruseum the new Game-Changer?

ProBit Bits — ProBit Global’s Weekly Blockchain Bits Vol. 5

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Elena

Elena

Traveller, crypto explorer

More from Medium

NFTs, Coins, Currency and Collectibles

GamesPad Announces The Burn of 4.87M $GMPD Tokens

How to get gas coin (MATIC) for the POLYGON network without expensive bridge fees

Do PoW based cryptocurrencies have a future?