Cryptocurrency Explained: What is PAX Gold?
Main Points on PAX Gold
PAX Gold gives investors a digital on-ramp to purchase physical gold
There are no annual custody fees for the gold assets represented by the PAXG token
Pricing of PAX Gold reflects the underlying PHLX Gold and Silver Index (XAU) spot price against the U.S. dollar in real time
What is PAX Gold?
PAX Gold is a digital token backed by physical gold. This means that for every PAX Gold token created, there is a corresponding amount of physical gold held in a secure location. This makes PAX Gold unique because it combines the security and stability of gold with the convenience and accessibility of digital tokens.
To understand how PAX Gold works, it's important to first understand digital tokens. A digital token is a type of digital asset that is created and managed using blockchain technology. The blockchain is a ledger recording all transactions that have occurred using a particular digital asset. It is almost impossible to alter or destroy records on the blockchain, increasing transparency and security for assets that live on the blockchain.
PAX Gold is created and managed on the blockchain but is an asset-backed token. When someone purchases PAX Gold, they are essentially buying a digital token that represents a certain amount of physical gold; in this case, each PAX Gold token is backed by one troy ounce of gold. This gold is held in a secure location and can be redeemed by the owner of the token at any time for different cryptocurrencies, distinct gold allocations, or fiat currency. This means that PAX Gold is not just a digital asset, but it also has tangible value because it is backed by physical gold and redeemable for different forms of currency, both fiat and digital.
There are several benefits to owning PAX Gold. One of the main benefits is that it provides a secure and stable investment opportunity. Gold has been a popular investment for centuries because it has a long history of retaining its value even during times of economic uncertainty. And gold prices continue to climb, nearing record-high prices in early 2023. By owning PAX Gold, investors can benefit from the stability of gold without having to worry about the storage and security concerns that come with owning physical gold.
How to buy PAX Gold?
Another benefit of PAX Gold is that it is very easy to buy and sell. Because it is a digital asset, it can be bought and sold just like any other cryptocurrency. Investors can easily buy PAX Gold using a CoinFlip ATM or by contacting CoinFlip Preferred.
Because PAX Gold is created and managed using blockchain technology, all transactions that occur using PAX Gold are recorded on a public ledger. This means that anyone can view the transaction history of any PAX Gold token.
Final thoughts
The key thing to know is that PAX Gold is a digital token that is backed by physical gold. It combines the stability and security of gold with the convenience and accessibility of digital tokens. PAX Gold leverages the tokenized economy by using blockchain technology, which provides a high level of transparency and accountability, but gives investors a digital way to access a tried-and-true segment of the traditional financial market: precious metals. With PAX Gold, investors can benefit from a stable, proven financial asset without worrying about the logistics and security questions that stem from owning physical gold.
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