Ever since the pandemic, crypto gold tokens have been on a non-stop rise — and their prices will soar even further according to recent reports. If you’re now thinking, “What’s the reason behind this sudden increase in value of gold tokens?”, then you’re at the right place. This post will dive into the details of this topic and we will also talk about the best gold token in the market right now.
So without wasting another second, let’s get right to it!
The Increase In Value of Gold Tokens During the Pandemic
Amidst the global coronavirus pandemic and the Russian-Ukraine conflict, gold prices have increased all around the world.
The increase in gold prices has subsequently led to the increase in the value of gold tokens hosted on the world of Web3. In case you didn’t know already, gold coins are a relatively new invention that is backed by real gold. They are defined by many as essentially a newer variant of stablecoins. But instead of being pegged to the U.S dollar, these coins are pegged to real gold.
Here are some of the biggest increases coins backed by gold have seen in the last twelve months:
● PAXG has jumped 7.4% in 2022
● Tether Gold has leaped by 8.5% in 2022.
● DGX has increased by 7.1% in 2022.
In contrast, bitcoin and tether — the top two cryptocurrencies in the world — have gone down 13% and 20% respectively in the last year.
So why is it that while other cryptocurrencies are losing value, gold-backed tokens are still on the rise? The answer is multifactorial, consisting of dozens of different reasons. Among those reasons, the two most noteworthy ones are the coronavirus pandemic and the Russian-Ukraine conflict.
The Coronavirus Pandemic and Gold Coins
Due to the pandemic, almost every country in the world faced a higher than ever inflation rate. This caused people to lose trust in their local and national economies. As a result, people started to invest their money in safer areas than their country’s currency. Since gold has always been considered one of the safest stores of value, more and more people have been converting their local currency into gold during these times of chaos and uncertainty.
You may not know this, but trading gold doesn’t always go as you would expect in the local market. Many traders try to rip you off and if you can’t find a good trader in your local market, it becomes really hard to sell your gold.
That’s exactly why so many people are investing in gold tokens. Being hosted on Web3, these tokens can be bought from and sold to an international market with thousands of traders. So by investing in gold tokens instead of gold, people get access to a larger market where their chances of getting a fair price for their selling their investment are significantly higher than in a local market.
The Russian-Ukraine Conflict and Gold Coins
The Russian-Ukraine conflict has had a similar effect on the price of gold as the pandemic. Citizens of both countries have started investing their money in mediums that they believe are safer than their country’s currency as their economies are under serious threat and at risk of high instability. Since gold is considered a safe medium for investment during times of uncertainty, a large number of the Ukrainian and Russian people are converting their local currency into gold.
Out of those people, the smart ones are investing in gold tokens instead of gold due to the reasons discussed earlier.
The Future of Gold Tokens
According to Mohammad El-Erian, a renowned economist and businessman, gold prices will go even higher during the upcoming months if the Federal Reserve System (Fed) is forced to raise its inflation target to 3%. Currently, the Fed’s current inflation target is 2%. If it is increased by 1%, we can expect to see a significant marginal increase in gold prices around the globe.
However, the increase in gold’s price will not be as high as the increase in the value of crypto tokens. El-Erian explains, “Crypto will outperform gold because crypto, unlike gold, benefited enormously from all the liquidity injections. So what you’re getting in crypto is this tug of war between a recognition that liquidity is going out from the system as a whole and attractiveness as a diversifier. And so far it is the liquidity element that’s winning out.”
So in short, both crypto tokens and gold are expected to gain more value this year. Since gold tokens are a combo of both, they are the perfect investment right now — which brings us to our next section.
rGLD: The Most Valuable Gold Token In the Market
rGLD, short for Rolaz Gold, is the latest invention of the Rolaz Group — a multimillion-dollar group that specializes in multiple fields, among which their main specialty is gold mining.
There are five main reasons why we believe rGLD is the best gold token in the market, surpassing the likes of PAXG, DGX, and Tether Gold.
1. rGLD Offers More Returns than Any Other Gold Coin
As we mentioned earlier, here are the returns from some of the biggest names in the gold token market:
● PAXG jumped 7.4% in one year.
● Tether Gold leaped by 8.5% in one year.
● DGX increased by 7.1% in one year.
Although those returns are impressive, they represent a trivial percentage when compared to rGLD, which has proven an average rate of return of 50% with lower risk and more potential for the future.
2. The Rolaz Deflationary Model Is Solid
rGLD is a deflationary token. That means it automatically burns coins to ensure the token retains its value in the long term. Half of the staked rGLD tokens are burned and half of them are refunded to stakers with additional promised returns in the form of rGLD tokens. This deflationary formula will help increase the token’s value with time as the total supply decreases.
3. The Rolaz Protocol Provides More Value
Unlike other projects, Rolaz aims to add more assets by tokenizing natural assets like copper and silver, real estate, and several other financial instruments. These new assets will result in even more profits for everyone involved.
4. Rolaz Works Alone
Unlike most other gold tokens, Rolaz doesn’t get a third party involved in handling the mining operations. The Rolaz group has been successfully running gold mining operations around the world for decades. So you can rest assured your investments will be handled by tried-and-tested methods overlooked by field experts — which isn’t a guarantee with any other coin.
5. The Rolaz Hedge Fund Board Brings Extra Appeal
The Rolaz Hedge Fund Board will invest the majority of its profits into the rGLD token. Just how much are we talking about? Well, about 80% of all return on investment (ROI) will be spent on the growth and maintenance of the project. We suspect this rare appeal behind the rGLD token will entice a large number of potential investors, resulting in more value for everyone involved.
Learn more: rolaz.io