WHAT IS GOLD?
GOLD CHARACTERISTICS
Gold is a precious metal in dark yellow and red light. Its Latin name is Aurum, its symbol is Au. The melting temperature of gold is 1064 degrees C. When melting, gold dissolves with other non-ferrous metals such as copper, silver, zinc, aluminum, tin, nickel … Pure gold is a relatively soft metal , easy to stretch, thin, conductive, good thermal conductivity. It is also an excellent radioactive substance, if covered with a thin layer of gold on the surface of the object, it can reflect up to 90% of high-density radioactivity or heat radiation. Gold is insoluble in acidic substances; it is not oxidized in the natural environment, it is not affected by alkaline salts but can “mix up” in liquid mercury and it is soluble in metal aluminum when high temperature. Since being known, gold has always been considered secured collateral.
WHY GOLD IS VALUABLE?
Pure gold is too soft and cannot be used for normal use so they are often hardened by alloying with silver, copper and other metals. Gold and its alloys are most used in jewelry and coins and becomes a standard for currency exchange in many countries. Because of its excellent electrical conductivity, corrosion resistance and other physical and chemical characteristics, gold stood out in the late twentieth century as an essential industrial metal. Human characteristics force us to go back to an exchange system and find ways to work together, which leads to finding a good way to exchange easily and efficiently. Gold is a reasonable choice. If disaster happens, we can use gold if paper money and the system supports it no longer exists. From a basic point of view, gold is the most reasonable choice for an environment for exchanging goods and services. It does not corrode, provides a sustainable value, and people are attracted by its color and feel.
Societies, and now economies, have put value on gold, thereby increasing its value. It is metal that we will come back to when other forms of currency are not effective, which means that it always has some value as insurance against tough times.
DISADVANTAGES OF GOLD
At the first part of this article, we can see many advantages of gold. Nevertheless, there are some disadvantages. So, what are gold disadvantages?
- Storage: Gold is physical; therefore, it is difficult to store safely and you need a good and secured place to store. Even if you can store, you have to store it with the anxious of robbery.
- Purchase or Sell: because it is physical, hence it is also inconvenient when you bring your gold to store every time you want to buy or sell gold. On the other hand, not every store is 100% honest with you because of their profit. For instance, they will not sell or buy real gold value that you have.
- Security: High storage of gold can be dangerous for you.
WHAT IS COIN?
In blockchain industry, Coin is a cryptocurrency that is released on a blockchain platform with basic features such as smart contracts, sending and receiving, digging coins … Coin is created to solve payment, security issues, finance, application development…
With mentioned disadvantages of gold above, what happens if we combine crypto and gold?
CRYPTOCURRENCY X GOLD
There are many advantages of crypto that can attract gold investors such as:
- Low transaction costs (there are completely free transactions)
- Convenient in transactions: You can transfer or receive coin immediately without going through intermediaries like banks, governments,…
- High security
- Create potential for e-commerce industry
- Environmental Protection
That is the reason why Digital Gold project was born (Token name: GOLD) (website: https://gold.storage/). The Digital Gold project has made investing in the gold market easier than ever, even for amateur people. The token was issue based on ERC20. GOLD is backed by physical gold that is stored securely and secretly. More detail, 1 GOLD equals to 1 gram of gold (99,99% Fine) and the physical gold can be audited anytime.
One of the important thing crypto investor usually worries about is token liquidity. Moreover, there are more and more scam projects in crypto space and investor’s investment usually go to zero if they unluckily engages in these money-grab project. This sore issue has been completely solved by GOLD by its own trading platform. Investors can also liquidate GOLD through their partner exchanges (Cryptex exchange). Furthermore, the purchase and sell of GOLD become more easily by GOLD’s market maker system around all of the exchanges.
Bitcoin — the greatest invention in the blockchain industry is currently facing a big problem, which is a high transaction fee every time multiple transactions take place at the same time.
That was proven at the end of 2017, the period when bitcoin reached its All Time High. This has caused unwanted damage to the crypto industry. Investors gradually recognize disadvantage of bitcoin and leave the market. For them, Bitcoin is not like what they had expected. Bitcoin transaction costs are even more expensive when they transfer through banks. This has led to what we call crypto winter in 2018. GOLD’s team realized this issue and they emphasized “No Transfer Fee” as one of the key feature on their website (https://gold.storage/).
As mentioned above, storing lots of gold can be dangerous for your own safety, especially when your identity is revealed which is unavoidable when you own a large amount of money. This is solved easily thanks to blockchain technology. When you own GOLD, your privacy is just simply perfectly safety; all you need to do is just to remember your private key of your GOLD wallet. No-one, even your husband and wife, can know whether you own gold or not unless you tell them by yourself.
Same as USDT backed by USD, GOLD is also 100% backed by physical gold. This makes your investment to GOLD become risk zero and owning gold is easier than ever.
That is all about DIGITAL GOLD project — a very interesting project that may take blockchain utility to another level. If you are a gold lover but hate the troubles when owning physical gold, then DIGITAL GOLD is your perfect choice. Cryptocurrency x Gold = new era of gold
Note: This is not financial advice, please Do Your Own Research before taking any action
Reference: https://gold.storage/
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