In the final episode of our Digital Gold series, our speakers discussed how the de-centralised framework that underlines some of the digital currencies can also help to support the gold market.
Dan said: “Bitcoin has been attracting a lot of people under 40. Maybe they consider it more of a store of value than gold? However, gold – which has been the store of value for 5,000 years – is not going anywhere. We are increasingly seeing people using gold to hedge against bitcoin and cryptocurrencies, as they are much more speculative and volatile than gold.
“The gold market is also much more liquid – adding blockchain technology on top of that will only expand the market,” Dan continued. “In terms of tokenisation, having gold on a blockchain sitting on digital rails in the digital ecosystem makes it fungible with all the other assets and easy to transact, which is attractive and will help propel this renaissance in gold – making it easy to hold a gold token backed by physical.”
Guido agreed. “If you look at tokenised gold – or tokenised assets, in fact, as we have just launched the world’s very first silver-backed token – you can easily transact with it,” he said. “Our new payment cards will soon allow you to pay in gold with a Vault Signer card – a multi-asset card connected to the blockchain. So, there’s no middleman.”
Watch the video and find out more, including commentary on the challenges facing the market in adopting this new technology, comparison with ETFs, and what needs to happen next.
Digital Gold - Part 01
Sakhila Mirza (LBMA), Daniel Masters (CoinShares) and Peter Grosskopf (Sprott) comment on the need for support from regulators, major exchanges and sovereign vaults for the market to embrace Digital Gold. Standards need to be established and enforced to help provide integrity and confidence.
Digital Gold - Part 02
Sakhila Mirza (LBMA), Charles Cascarilla (Paxos) and Raghav Chawla (Fidelity Investments) talk about the challenges that come with the early adoption stage in Digital Gold, how the focus right now is on technology and infrastructure, and what stands in the way of this industry moving into its next phase.
Digital Gold - Part 03
Can bitcoin legitimately claim to be the ‘new gold’? Watch the latest in our digital gold series, Sakhila Mirza (LBMA) discussed these ideas with Charlie Morris (ByteTree Asset Management) and James Butterfill (CoinShares).