Gold is one of the commodities most sought after by investors, because it is considered a safe, stable and inflation-resistant asset. However, investing in gold also has its own challenges, such as storage costs, risk of theft, and liquidity difficulties. Is there a way to solve these problems? The answer is PAX Gold (PAXG).
If you own PAXG, you have ownership rights to the underlying physical gold. PAXG operates on the Ethereum blockchain, and can be traded on various crypto platforms and exchanges.
With PAXG, you can invest in gold in an easier, cheaper, transparent and liquid way. You don't have to worry about storage costs, risk of theft, or complicated administration processes.
You can also exchange PAXG for physical gold at any time, or exchange it for other fiat or crypto currencies. PAXG is also regulated by the New York financial authorities, thus ensuring its security and credibility.
What is PAX Gold (PAXG)?
PAX Gold (PAXG) is an abbreviation of Paxos Gold, which is a digital token backed by physical gold. PAXG was launched by Paxos Trust Company, a New York-based company that also issued the Paxos Standard (PAX) stablecoin.
PAXG is an ERC-20 token running on the Ethereum blockchain. This is a decentralized, transparent and secure transaction recording system.
PAXG aims to imitate the price movements of gold, which is the most valuable commodity in the world. Each PAXG token is equivalent to one troy ounce of London Good Delivery gold, which is the highest gold quality standard on the international market.
The gold underlying PAXG is stored in the professional vaults of Brink's, which is a gold storage company recognized by the London Bullion Market Association (LBMA).
PAXG allows investors to buy and sell its tokens on crypto platforms and exchanges, like other token products. PAXG is different from physical gold, which must be stored in a safe and secure location.
PAXG is also different from other gold investment products, such as gold ETFs, gold mutual funds, or gold certificates, which have higher costs and risks.
How PAX Gold (PAXG) Works?
PAX Gold (PAXG) works in a simple way, namely connecting physical gold with digital tokens. To do this, Paxos Trust Company takes several steps, including:
- Buy physical gold from a trusted supplier, and store it in Brink's vault.
- Records information about physical gold, such as serial number, weight, purity, and storage location, on the Ethereum blockchain.
- Issue PAXG tokens equivalent to physical gold, and sell them to investors via the Paxos platform or other crypto exchanges.
- Providing PAXG exchange services for physical gold, fiat currency, or other crypto, according to investor requests.
- Provide monthly audit reports showing the quantity and value of the physical gold on which PAXG is based.
What are the Benefits of PAX Gold (PAXG)?
PAX Gold (PAXG) has several advantages, both for investors and the gold market, including:
Improve accessibility
PAX Gold (PAXG) makes it easy for investors to invest in gold without having to own or store physical gold. PAX Gold (PAXG) can be bought and sold on crypto platforms and exchanges using a standard crypto account, without having to register on a gold platform or create a gold account.
Reduce costs
PAX Gold (PAXG) reduces costs typically incurred for owning or transacting with physical gold, such as vault fees, insurance fees, brokerage fees, and tax fees. PAX Gold (PAXG) also offers a lower expense ratio and less brokerage commissions than buying physical gold individually.
Increase liquidity
PAX Gold (PAXG) increases the liquidity of the gold market by attracting more investors and capital into it. PAX Gold (PAXG) also allows investors to buy and sell its tokens at any time during trading hours, without having to wait for a seller or buyer of physical gold.
PAX Gold (PAXG) also reduces liquidity risks associated with gold price fluctuations.
Increase transparency
PAX Gold (PAXG) increases the transparency of the gold market by providing accurate and verified information about the underlying physical gold. PAX Gold (PAXG) also ensures that there is no manipulation or fraud in the token buying and selling process.
PAX Gold (PAXG) is also regulated by the New York financial authorities, which ensures its safety and credibility.
What is the PAX Gold (PAXG) Challenge?
PAX Gold (PAXG) also has several challenges to face, including:
Adoption
PAX Gold (PAXG) still requires wider education and outreach to investors, especially those who are not yet familiar with the concept of digital tokens and blockchain technology. PAX Gold (PAXG) must also offer added value and higher trust to investors, so that they want to participate in this product.
PAX Gold (PAXG) also has to compete with other gold investment products, such as gold ETFs, gold mutual funds, or gold certificates.
Technology
PAX Gold (PAXG) still faces technical challenges, such as scalability, interoperability, security, and standardization. PAX Gold (PAXG) must use blockchain technology that is capable of handling large transaction volumes, interacting with other blockchains, protecting data and assets from cyberattacks, and adhering to industry-agreed standards.
How to Buy PAXG Tokens on Bittime
You can buy and sell MANTA tokens in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappbeti. PAX is available on Bittime with PAXG IDR pairing .
To be able to buy MANTA/IDR tokens on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of Bittime assets is IDR 10,000. After that, you can make MANTA purchases in the application. More complete guide on how to buy PAXG on Bittime
Monitor price chart movements of Manta Network (MANTA), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read also:
Understanding Leveraged Tokens
What is a Liquidity Provider Token (LP Token)?
What is TokenFi (TOKEN)? Floki Inu Project for Asset Tokenization
What is the SPL Token Standard and Solana Token-2022
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.