Bitcoin is a Store of Value, and the digital Gold. Phrases such as these you can hear, especially in the context of the current trade conflict, again and again. Bitcoin is better than Gold, because it brings many advantages compared to Gold, for example, the portability or the fact that Bitcoin is divisible. But Bitcoin is just Bitcoin and no digital Gold. And this is exactly why Paxos has decided to be a ‘Gold Revolution’ and the gold-covered Stablecoin Pax Gold (PAXG) emitted.But wait: Who was that again Paxos and why is a Stablecoin on gold base make sense? He’s doing this at all, or you could just buy Bitcoin? We start with the article!
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Paxos, Paxos Gold (PAXG), and Stablecoins
Paxos is the Name of the New York financial institution and as a Stablecoin-Issuer known. The Paxos emitted Stablecoin is Paxos Standard and is tied to the US Dollar.As mentioned in the introduction, it can be seen that Paxos now, however, new ways, by bringing a gold-based Crypto-Asset called Pax Gold (PAXG) on the market. In the case of PAXG is a ERC20-tokens, wherein each Token is an ounce of fine gold covered. The physical bars of gold stored in the London vault of Brink’s. In addition, Pax was approved Gold by the NYDFS (New York Department of Financial Services).And now the (in my opinion) exciting Part comes: Since the Token is backed by Gold, each owner of a PAXG-Token a direct legal claim on the physical Gold. The CEO of Paxos, Chad Cascarilla, said the following:
It is not simply a representation of the product, it is the actual legal claim to it. This is precisely the reason for a Blockchain – the actual level of security that you move Assets easily and can share without having to be a physical process bound.
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PAXG, it can be replaced in physical bullion
As already mentioned, is the cost of each Token is the same as an ounce of Gold. Accordingly, the price is always from the current real-time gold price. Tokens can be redeemed against a physical bullion in the case of Paxos‘ partner institution Bullion Exchange. Currently, however, this is only in New York and London possible.This is not a permanent condition, also know Cascarilla, which is why he indicates that Paxos will expand its list of global partners. The aim should therefore be to ensure that users ‘across the world’ the way to get real Gold. PAXG, however, shall not be the last product of Paxos. Specifically, it is stated:
We will manufacture more products like this. We take assets out of the ‘real life’ and bring them to the Blockchain.
Bitcoin vs. PAXG – can delighted in the Stablecoin?
Nevertheless, it remains to be seen whether the token finds inventoried Gold at crypto-enthusiast appeal. Messari-co-founder Dan McArdle expresses already now doubt about it. His Justification? Assets, issued by the centralized units AND shall have custody of, can not compete with the role of Bitcoin as a digital Gold. Literally, he says the following:
Bitcoin reaches all the relevant properties of Gold, and much more. It is just better Gold for the modern age. BTC reached its properties precisely because it has no Central anchor to the ‘physical world’. You just can’t manage to get the trusted properties of Bitcoin, if there is a small group of people/organisations, physical objects on a Blockchain.
This statement is true (in my eyes) the nail on the head. First, Paxos is probably struggling with ‘centralization’ allegations ‘ to. In addition to this fact, it is but also, and especially, the lack of awareness of the PAXG to.Trading on BitMEX, with up to 100-fold leverage. Do you want to move also larger sums, but the money is missing? On BitMEX, you can act through the lever with 100€ a volume of up to€ 10,000 and your profit times the verhundert. Of thinking but always remember, the higher the leverage, the greater the risk! Now on BitMEX sign up.
A Result – a lot of open questions regarding PAXG
Why should you buy an Investor out of China, for example, in the case of a US-based company a Stablecoin? And what happens if the Trade dispute escalates further and further embargoes or boycotts are pronounced? Further questions arise: how long will it take to PAXG across the Board (and not just in London or New York) against gold bullion can be traded?All of these things make me conclude that the idea behind PAXG and the associated ‘Gold Revolution’ is interesting, yet not too high-should be praised. One of the current plus points of PAXG is the one that an actual right is to be awarded a claim on the Gold and thus the possibility to transfer the Gold in the world within the shortest possible time. But here we are again at the last question – what is the PAXG bring me, if I can’t exchange them for Gold, because I live in Shanghai and not London live?Paxos and the Gold Revolution. What do you think of the idea of a gold-covered Stablecoins? The future, or absolutely no chance? Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)