Gold-backed Cryptocurrencies are Shining in 2022
Gold-backed cryptocurrencies have an amazing year so far, as the market capitalisation hit 1 billion dollars for the first time in history. PAX Gold did the most of weight-lift in pushing the gold token market capitalisation above this milestone, as it outperformed Tether Gold. Market cap increased for 60% this year alone. As gold is rising so, is the crypto connected with it, however Bitcoin disappointed so far. One reason for this is that investors moved to diversify inflation bets – gold was always known as safe haven against inflation. Gold rose for almost 14% in this year, which means that it is on the highest point since August 2020.
From 1 billion dollars market cap, PAX Gold represents around 600 million dollars, while Tether Gold, its rival, witnessed much lower growth and represents around 211 million dollars.
PAX is regulated by New York State Department of Financial Services, and it means that it presents less risky investment, especially after confirming that PAXG in circulation is 100% backed by an ounce of gold. And its rival, Tether Gold, doesn’t appear to be regulated by any regulator, which can’t approve that it is 100% tracked or backed by gold.
Sources:
https://markets.businessinsider.com/news/commodities/gold-backed-cryptos-are-shining-in-2022--market-cap-hits-$1b-for-the-first-time-11127650
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