Cryptogon – November 1, 2021
Dealing with physical gold in fractions of a gram seems extremely cumbersome, and, are vendors confident that they’re being paid in actual gold?
With the use of cryptocurrencies booming in Venezuela, I wonder if people are using any of the gold backed cryptos for the purposes described in this piece?
The most bugeyed Cryptogon readers will wave red flags and warn that these gold schemes could be scams. I understand this sentiment.
But…
If the point of using the physical gold is the protection it offers against the maniac state’s fiat emissions, it might make sense to use tokenized gold for day-to-day business operations. While tokenized gold isn’t physical gold, my guess is that there’s a good chance that alleged physical gold isn’t actual physical gold, in some cases.
If I was running a business and accepting payments in gold, I’d rather have tokenized gold than some yellow shiny stuff that came across the counter. Tokenized gold can be easily transferred anywhere, divided and, depending on the crypto, ultimately redeemed as physical gold. Allegedly physical gold, that is.
Keep in mind, actual physical gold can’t be disappeared by an EMP, a teenage hacker or a quantum computer.
Maybe business people could use tokenized gold for small amounts and eventually sweep these into a larger bar, or some other asset, for long term wealth preservation.