Blockchain, Reign and the Paper Parade
Gold, ETFS and how blockchain will change the way gold is bought, sold and held in the future.
Examine what xbullion is, its connection with gold, and how it is proffering a better solution than other stablecoins in the industry. Initially listed on Zipmex and Bitrue, xbullion is gaining wider adoption in the digital asset space with a further listing on an undisclosed cryptocurrency exchange. With this, more people will be able to trade and use the xbullion Token as a store of wealth.
xbullion is a gold-backed cryptocurrency that is causing a gradual yet massive shift in the crypto industry.
What is this going to mean to cryptocurrency traders and holders alike? xbullion will be a token to peg the relevance of your cryptocurrency with gold. That is, it will be a stablecoin for you to store your asset and hedge against the volatility of cryptocurrencies.
The volatility of cryptocurrency calls for an avenue to have a predictably stable price. This stability cannot just be ensured by the price of fiat currencies, but something worth much more – gold.
The reason is simple: fiat-backed stablecoins like USDT and USDC are still subject to potential inflationary effects of the currency they are pegged to. Therefore, using a gold-backed cryptocurrency is something quite a lot of investors have found attractive.
In this brief content, we are going to explain.
Gold, one of the most precious metals in the world, remains the world’s oldest form of currency. Its unique density and scarcity have always made it stand out.
Right from time, gold has been synonymous with a symbol of royalty, wealth, prestige, and value. With time, it started to become a form of investment. The truism of this is seen across its discovery and use in relevant races, climes, and cultures.
We could see the earliest documented traces of gold being a currency in the times of Darius the Great in the then Persian empire. In the early stages of traditional finance and banking, gold has been a sure commodity for trading and bartering. Such that traders would exchange commodities for gold.
Coming forward to the present time, although gold started to slope down in global authority around the 19’s, it’s nevertheless as relevant as before. Presently, gold is now known to be used as a hedge against deflation, inflation, and other financial stresses. Recall the price of gold rose incredibly during the popular 2009 financial crisis and again through the current global pandemic.
At present, gold is worth $1,807 per ounce. However, Wall Street has predicted that gold will rise with its 2018 bullish trend and is set to hit $2,400 in the near future. That explains why even Central Banks are utilizing gold as a form of reserve.
As discussed so far, the bullion industry has been flourishing since the medieval period and has done so little to adapt to modern technology. However, problems like security, delivery, and fractional ownership issues still beset it to date. Traditional holders could wait for a significant amount of time before they could receive their purchased bullion. Also, they couldn’t secure their assets because of the possibility of theft and other accidents without significant expense and logistical planning.
But before we dive further and for the robust essence of the xbullion Token, let’s have a quick explanation of what stablecoins are:
Generally in blockchain, a lot of factors influence the price of coins or tokens. Thus making them quite volatile. For instance, Bitcoin moved from almost $65k in April this year to around $39k as of the time of writing this report.
Moreso, the prices of other coins have gone down during this dip. This extremely bearish trend and relative unpredictability are part of the requirement for stablecoins. Simply put, stablecoins are cryptocurrencies that are pegged with the relative value of a currency like the United States Dollar or any other physically tangible asset like gold or silver.
That is, the worth of a stablecoin is tied to the corresponding value of the asset that backs it up. In a way, stablecoins bridge the gap between cryptocurrency and usual traditional currencies.
And what does it mean to back up a stablecoin? Technically, every stablecoin has a reserve asset. This reserve is the store of the physical asset it is pegged to. For instance, a coin whose value is tied to gold should have some "real-life" gold in its reserve.
Such that $500k worth of that coin is available, it should have corresponding bars of gold that are worth $500k. This also applies to any fiat-backed stablecoin.
Having examined the relevance of gold and stablecoins in cryptocurrency, we shall now look into how xbullion is a leading digital gold token.
xbullion is a gold-backed stablecoin. In other words, it is a digital form of tangible gold. The physical gold bullion that backs xbullion is secured. At the moment in the crypto space, not all tokens backed by gold or fiat are comprehensively audited by reputable firms. Recall how Tether is facing regulatory issues over its reserve assets. On this note, xbullion is a well-audited stablecoin that meets objective standards and is institutional-ready.
Stablecoins that are backed up by fiat fluctuate with the relative price of these traditional currencies; thus, still being volatile. On the other hand, gold is a more stable store of assets as it doesn't succumb to relative financial stresses. On the strength of this, xbullion is more predictable as a digital gold token.
In short, here are the ways xbullion has an edge over other forms of stablecoins:
Through its partnership with a lot of renowned gold suppliers, xbullion can buy gold at discounted, wholesale and spot prices. Hence, xbullion can sell its digital gold tokens at attractive and fair prices.
xbullion can get this wholesale price because of its unique partnerships and "fractional volume" operations which have afforded gold buyers bullion redemption over their holdings. In a way, this brings xbullion in direct competition against Exchange-Traded Funds.
xbullion does NOT charge any management, custodial nor minting fees on the GOLD Tokens, but simply, a transfer fee of 0.19 percent. This reduces the purchase price available to wholesale and retail investors alike. Also, xbullion offers relatively lesser service fees by leveraging peer-to-peer technology and its unique industry partnerships. This fee system makes it attractive to ETFs and gold investors.
xbullion avails individuals and institutions the possibility of transferring ownership of gold to one another near instantly and P2P, and without any intermediaries required. Indeed, owners of xbullion tokens can send and receive gold as easily as a Mastercard transaction.
It is the only true version of digital gold and silver because it has direct ownership and immutable asset protection in this regard.
Research has shown that people want to buy cryptocurrencies that are in line with the usual assets like gold or silver because in general, people are not only confident in these tangible assets, but also loyal to its strong foundations as mentioned in the study conducted by World Gold Council in 2019
With the way this project leverages the Ethereum blockchain, it beats ETFs and Physical gold storage in a lot of ways. This includes its attributes of programmability, global accessibility, and P2P capability.
It is no surprise that xbullion has cought the attention of numerous investors given the project's innovative solution. DigitalX, one of the world's first publicly listed blockchain technology advisory firms in Australia, is an investor in the management company for xbullion. This collaboration is geared towards making xbullion accessible through several cryptocurrencyexchanges.
The governance of xbullion is the xbullion token and it runs on the Ethereum blockchain. The Ethereum blockchain provides decentralized blockchain infrastructure for smart contracts and other similar projects.
It suffices to say that each xbullion token is synonymous with 1g of investment grade gold bullion. In the bid to ensure seamless interoperability among its digital wallets and other applications, the digital token complies with the ERC-20 token.
Therefore, the users of xbullion tokens can transfer them to any wallet that is on the Ethereum blockchain. Also, buyers have a compelling option with the xbullion Tokens: they can redeem their physical gold at a better price than if they had bought it in real-time.
The crypto market obeys the law of demand and supply. There are always people who want to purchase coins and those who would like to sell.
To effectively carry out this trade, there is an unbending need for middlemen to bridge the gap between the purchasers and the sellers. Because as it were, users cannot buy coins from the traditional banks.
This is where cryptocurrency exchange platforms come in. They act as "brokerage" for users to connect and buy cryptocurrencies by funding their accounts on these exchange platforms.
Such that when a user trades some coins, the exchange platform transfers or imports into the user's exchange wallet accordingly.
Exchanges are now fully-fledged businesses with structure. Moreover, each exchange has different cryptographic tokens listed. Meaning that not all coins are listed on all exchanges.
For coins to be listed on exchanges, they have to go through proper analysis and assessment to ensure the viability of their use cases. For instance, coins like ETH, USDT, USDC, and ADA are listed on Binance exchange.
When choosing a crypto exchange, here are a few points users should check: regulatory compliance, reputation, fees, payment methods, security, withdrawal and funding limits.
At the moment, some of the most popular exchanges are Coinbase, Gemini, Kraken, Binance, and OKEx. xbullion Token is currently available at Zipmex and Bitrue. Having said this, it's important to note that exchanges are guided by the regulations binding them. These regulations are jurisdiction-sensitive. Most importantly Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements are a common standard
At this juncture, it's necessary that we differentiate an exchange from a cold storage device.
While we have examined what an exchange is above, cold storage devices on the other hand are hardware wallets where users can keep their cryptocurrencies. In short, exchanges are online, while cold wallets are completely offline reducing the hacker risk.
How much gold bullion will one xbullion token represent?
One xbullion token represents 1g of investment grade 99.99% purity gold bullion.
Is xbullion secured?
xbullion is secured because it has a well-audited reserve. Meaning that it is gold-backed and third party, reputable auditing firms have found this to be true. In addition, the token represents direct ownership of the underlying gold gram.
What makes xbullion different from other gold-backed cryptocurrencies?
xbullion is different from other gold-backed stablecoins because it is physically backed by allocated gold bullion, fractional, redeemable, vaulted, and audited by the renowned multinational auditing and accountancy firm - BDO.
Will the xbullion token price fluctuate between exchanges?
Yes. This all depends on how the exchange operates. Generally if the exchange pulls in the xbullion price feed, the listing price will not deviate. If the exchange offers peer to peer trading, the xbullion token will be subject to the forces of supply and demand. This does, however, present a great opportunity for arbitrage between exchanges, knowing the xbullion Token will always hold the value of 1g of 99.99 purity gold bullion
What does the redemption of the xbullion Tokens mean?
This means that xbullion Tokens are redeemable for the physical gold bullion that they represent. That is, you can choose to convert your digital gold token to physical tangible gold. However, 1000 tokens (representing 1kg of gold bullion) is the minimum requirement.
So, how can I buy xbullion Tokens?
An impending listing of xbullion on one of the leading exchanges—still undisclosed for now—will make GOLD even more available to cryptocurrency traders. Indeed, xbullion has opened the floodgate of gold investment to everyone. On this, David Lightfoot, the CEO of xbullion,remarked:
xbullion’s solution is a generational leap in the gold market, gold can now be sent securely as easily as sending an email
David Lightfoot, CEO of xbullion
The fast-rising nature of xbullion and compelling value proposition, makes it likely that other big exchanges will soon list the gold token. xbullion is on a fast track to becoming the number one stablecoin in the cryptocurrency industry.
To know more about xbullion, please click here to read the whitepaper.
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