Which digital currencies are backed by gold and how does it work?

3 answers

• Ashok kumarMar 31, 2021 · 5 years ago
  Sure! There are several digital currencies that are backed by gold, including Tether Gold (XAUT), PAX Gold (PAXG), and DigixDAO (DGD). These cryptocurrencies are designed to provide stability and security by representing a certain amount of physical gold. The backing works by ensuring that each unit of the digital currency is backed by an equivalent amount of gold stored in secure vaults. This means that the value of these cryptocurrencies is directly tied to the price of gold, providing investors with a way to invest in gold without the need for physical ownership. The gold backing also adds an extra layer of trust and transparency to these digital currencies, as the gold reserves can be audited and verified.
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• Anthony AllenDec 08, 2021 · 4 years ago
  Yep, there are a few digital currencies that have gold backing. Tether Gold (XAUT), PAX Gold (PAXG), and DigixDAO (DGD) are some examples. The way it works is that these cryptocurrencies are pegged to the value of gold, meaning that each unit of the digital currency represents a certain amount of gold. This backing is achieved by holding physical gold in secure vaults, and the value of the digital currency is directly tied to the price of gold. So, if the price of gold goes up, the value of the digital currency also increases. It's a way for people to invest in gold without actually owning physical gold.
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• Fireproofing OntarioFeb 07, 2021 · 5 years ago
  Certainly! Some of the digital currencies that are backed by gold include Tether Gold (XAUT), PAX Gold (PAXG), and DigixDAO (DGD). These cryptocurrencies have a mechanism in place where each unit of the digital currency is backed by a specific amount of physical gold. This backing is achieved by holding the gold in secure vaults, and the value of the digital currency is directly linked to the price of gold. So, if the price of gold goes up, the value of the digital currency also increases. This provides investors with a way to invest in gold without the hassle of owning and storing physical gold. It's a convenient and secure way to gain exposure to the gold market.
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