Investing in Gold Digitally: The Crypto Way

Giottos is the only crypto platform to have launched Tether Gold (XAUT) in India.

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For centuries, gold has been synonymous with money with historical significance. However, in today’s world, there is a different currency system (USD, INR, etc.) used mostly within national borders. These systems were originally based on the possibility of redemption in fixed amounts of gold via a peg to the US dollar. The point of paper money was to represent physical gold in a way that was conducive to transactions.

By allowing gold to be divided, stored and transported much more easily, representative paper money improved the economic functionality of gold. But there was a caveat hidden in plain sight. There are limitations to the supply of physical gold that do not apply to paper money. This potentially allows a dishonest issuer to print representative notes exceeding the supply of gold it holds. This added element of confidence – a new form of counterparty risk – means that gold’s representative paper is an inherently lesser ‘store of value’ than gold itself.

It was mainly for this reason that many countries began to repatriate all their gold from US vaults in 1965. This led to a rapid depletion of gold reserves, leading to a unilateral suspension of the international convertibility of US dollars into gold (which was established in Bretton Woods Accord). This decision completed the formal decoupling of gold from the international monetary system, forcing the world into the current era of unsecured fiat money.

This is where Tether Gold (XAUt) comes in to fill the gaps created by our modern monetary policies. In today’s article, we’ll briefly explain the basics of XAUt and why buying XAUt might be a prudent investment.

What is Tether Gold (XAUT)?

Tether Gold (XAUt) is a crypto asset backed by physical gold. TG Commodities Limited (Tether Gold), digitizes the value of gold using the new token, XAUt. This token gives XAUt holders the ability to own digitally allocated gold in small amounts that are highly transferable and with relatively low fees.

What are the other benefits of holding XAUt?

  1. Transporting physical gold is difficult, however, transporting your XAUt tokens is as easy as taking other crypto assets.
  2. It is difficult to separate physical gold bars. However, XAUt tokens are divisible into increments as small as 0.000001 fine troy ounces of gold.
  3. Physical gold trading limits you to your location and trading hours. However, XAUt tokens can be traded 24/7/365 from anywhere in the world on exchanges that list XAUt.
  4. Storing your physical gold can be expensive and can expose you to geopolitical risks. Storing your XAUt tokens is as easy as storing your other crypto-assets.

XAUt vs BTC: Which is the best hedge against inflation?

If you are someone who wants price stability coupled with inflation-beating returns, then XAUt is an attractive option for you. If XAUt had been bought for Rs.1000 on January 1, 2022, it would have become around Rs. 1068 today with a gain of 6.8%. On the other hand, if BTC would have been Rs. 610 today with a loss of 39%. Therefore, XAUt, as a gold equivalent, has the potential to become a strong diversified asset in every crypto portfolio.

Initially, when investors enter crypto, they can start with a crypto allocation of up to 2% of the overall portfolio and slowly increase the share over time. They can be offset by investments in less volatile and physically backed tokens such as XAUt.

Overall, Tether Gold (XAUt) combines the best of traditional safe-haven assets (gold) and modern investments (crypto) in one go.

How to buy a XAUT token in India?

Giottos is the only crypto exchange to launch XAUt in India. At the moment, XAUt can be purchased with USDT here. Giottos plans to do many community related activities like giveaways, shopping contests, etc. in the next few days. Follow us on social networks profiles to participate in it.

Use promotional code TNM51 on after registration to get Rs.51 worth free bitcoin.

Disclaimer: This article was written by Giottos Crypto Exchange as part of a paid partnership with The News Minute. Investments in crypto-assets or cryptocurrency are subject to market risks such as volatility and have no guaranteed return. Please do your own research before investing and seek independent legal/financial advice if you are unsure about investments.


#Investing #Gold #Digitally #Crypto #crypto

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