Related: Is Bitcoin a Store of Value? Experts on BTC as Digital Gold
The marriage of blockchain technology’s open truthfulness with gold’s alluring scarcity makes for a highly transparent, secure and liquid financial instrument with which to hedge against currency depreciation, allowing average consumers and retail investors to hold onto the value of their savings. Going out and finding a buyer for physical gold can be arduous and time-consuming, but tokenizing gold under a legal smart contract increases its portability, giving the vendor immediate access to a worldwide market, which drastically increases its liquidity.
By leveraging blockchain technology, gold can be traded on cryptocurrency exchanges, opening new markets for the gold industry. As precious metals and cryptocurrencies share a common vision of hard money, the synthesis of these markets has the potential to create a powerful economic counter-force should currency devaluation continue unabated.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk. You should conduct your own research when making a decision.
The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Rob Odell is the vice president of product and marketing at SALT, the pioneer of crypto-backed loans, where he is responsible for managing the product and marketing teams, gathering insight into business problems, obtaining user feedback, and turning stakeholder ideas into products and features. Prior to his role at SALT, Rob held product manager roles at Skookum and Search Scientists. Rob has been a Bitcoin believer since 2013 after being introduced to it by a Bali-based coffee roaster selling his beans for Bitcoin.
