Blockchain.com, a leading crypto wallet, analysis firm and parent company of Blockchain Pit exchange, announces the launch of $DGLD. The digital representation of real gold will leverage its security from the Bitcoin [BTC] blockchain.
The new digital asset has been launched in partnership with Coinshares, chief digital assets manager in the UK and MKS (Switzerland) SA, a trader of precious metals. The Swiss-based firm provides financial services including vaults based security for various precious metals.
The new financial asset, DGLD will allocate an equal amount of gold in MKS’s vault. The data for the digital asset will be stored on a blockchain itself. It is using Bitcoin’s protocol as a security layer for verifying the ‘proof of ownership’ for its sidechain.
Charles Mcgarraugh, the head of Marketing for Blockchain.com, formally with Goldman Sachs, tweeted,
Nice example of the “self-sovereign, safe, attestation utility for everybody” use case for Bitcoin.
Moreover, on the economics of investment in gold, Mcgarraugh cites the importance of hard money in the economy. He notes that gold a ‘0%-real yield perpetuity’ bond that protects investors from inflation and economic distress. He added,
In other words, #gold is the real-world long term capital storage asset. Pricing on #gold, therefore, should be a function of the opportunity cost of holding your capital in storage rather than deploying it in the economy.
Even Gabor Gurbacs, the CEO of VanEck had noted earlier that Bitcoin and Gold need not be rivals. Moreover, since both their prices rise based on similar market conditions, one should be appreciating the other.
It is aimed at cutting off friction and increasing the feasibility of gold as a medium of exchange. DGLD has resumed trading on the exchange BlockhainPIT.
The new asset type will increase the fractional use cases of gold for an exchange due to easy transmission. Bitcoin’s decentralized public blockchain will verify the proof of ownership like similar to how it verifies the Bitcoin addresses of sender and receivers of BTC. Mcgarraugh notes,
Which one will you prefer: DGLD or BTC? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com