It’s no secret that the market has been doing very well – too well. If it isn’t President Donald Trump tweeting about it, you will probably hear about record stock market highs and unemployment lows from a variety of other sources. But we have gone many years without a stock market correction, and experts are warning that 2018 may usher in the beginning of the next big recession. Thankfully, there are blockchain-based digital gold investing platforms like DigixDAO (DGD) that can help us cushion the blow.
The Digix platform makes buying and securely saving gold easy and transparent, and can be a source to turn to for quick funds when the bear market inevitably comes back – and the resulting gold panic follows.
What is DigixDAO (DGD)?
It’s one of two cryptocurrencies that runs on the Digix Marketplace, where users can buy both DGD and DGX tokens. DGX coins are what represents the gold you are investing in. Each DGX token represents a gram of 99.9% LBMC-approved gold – and it is securely stored in a vault in Singapore indefinitely. Each coin is capped to the value of 1 gram of gold.
So, all you need to do in order to invest in gold that you have ownership over is buy a coin on the app. Compared to investing in a Gold ETF, it’s much safer as there is no third party.
The DigixDAO coin, on the other hand, is what we are more interested in as cryptocurrency traders. This is the token that will go up and down in value based on the market and the product, not on the value of gold.
DGD token holders get rewarded, on a quarterly basis, with more DGD coins thanks to the fees (for selling, buying, and keeping the gold bullion in secure storage) that get collectively redistributed to the network.
But the Marketplace is Still in Beta
The Digix Marketplace isn’t in tip-top shape yet, but users can still buy gold on the platform. It’s currently still in the beta phase, as the company puts it:
This early version demonstrates the core marketplace of our Asset tokenization platform for Gold Bullion. We are still actively developing the software for the Proof of Asset protocol on the backend as well as beautifying our marketplace.
But liquid gold bullion can still be bought on the site, and its ledger technology is really appealing. Its proof-of-asset (PoA) protocol means that you can buy no fracture gold reserves that you can redeem either in person or by mail.
Aren’t there other blockchain-based gold investments?
Yes – there are already other blockchain platforms that allow you do invest in digital gold. Bitgold, Goldmoney, and HelloGold (which we have featured on this site before), are all already trading and offer similar features.
But those coins aren’t the second-highest 24-hour gainers on CoinMarketCap today. Meanwhile, DigixDAO is in that number two spot, currently up 24% from its price a day ago. With a market capitalization of about $500 million, this coin is the 58th most valuable cryptocurrency globally. That makes it the most high-valued blockchain-based gold trading platform around.
Since the market crash is coming probably sooner rather than later – are you going to use one of these coins to stock up on gold?
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.