Did you know that in the 1970s the US dollar was backed by gold? It remained so until president Nixon’s administration decided to remove the gold backing.
However, the seventies isn’t the only time gold was used within the financial system. In fact, gold has been a reliable and secure asset for centuries, and it proved to us that it’s here to stay.
Today, for investors gold means a trusted store of value, especially when fiat currencies get volatile. But what does that have to do with cryptocurrencies?
Well, in recent years, cryptocurrencies are going mainstream, which caught the attention of gold investors and companies. This lead to a rise in interest with the concept of gold-backed cryptocurrencies.
So, what can cryptocurrencies and gold do together? This question leads us to the topic of today’s blog post.
Why do we need tokenized gold?
Why should we go for a tokenized gold? What’s wrong with the traditional way of buying, selling, and storing gold?
For starters, storing gold is pretty inconvenient since it requires a safe space. Also, transporting gold can be a hassle. You have to physically move gold and deal with a ton of bureaucracy.
And it doesn’t get better with gold trading. If you decide to do that, you’ll have to validate ownership and the quantity stored. Moreover, you have to rely on a middleman in the industry that has no defined ethical standards.
Tokenizing gold means that storage and transport problems disappear. In addition, blockchain technology makes gold trading transparent, safe, and globally accessible.
No boring bureaucracy and trusted third parties. Plus, the ownership over the gold is completely yours.
Luckily, companies have already started to recognize how valuable a coalition of blockchain and gold can be. Let’s take a look at one such startup.
Novem Gold – buying, selling, and storing gold on blockchain
Novem Gold, a Lichtenstein-based company, aims to solve trust and transparency problems in the precious metals industry.
Recently, the company opened its first brick and mortar gold store located in Linz, Austria.
Novem Gold also decided to hold an airdrop and distribute its tokens for free. The airdrop is worth 3 NVM tokens (~$ 2.50), and you can earn 2 NVM tokens (~$ 1.67) for every referral.
Gold and cryptocurrencies are a powerful combination. Why? Because they combine the best of both worlds. And as a result, you get to trade and store gold in a way that is safe and free of errors and third party control.
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