Digital Gold: Making Crypto and Gold Malleable for Adoption and Usage

Bitcoin has long been described by proponents as “digital gold” with reference to the story of the first digital currency backed entirely by gold and silver in 1995.

With cryptocurrencies having captured everyone’s imagination, we often forget that the digital gold boom of the 1990s was the first digital currency revolution. It proved that an alternative financial system was possible and that a significant number of people would be zealous to use such a system that operated completely outside of and independent of the legacy banking system. In 1999, the Financial Times called e-gold “the only electronic currency that has achieved critical mass on the web.”

During this historical period, Marco Lavanna, Founder and Chairman of Monetum, also founded an e-Gold exchange (GoldEx) in the late 1990s in Australia. In his podcast (www.marcolavanna.com), Marco explains the rise, challenges, and the rebirth of his entrepreneurial dream through the Monetum project.

WHAT’S NEXT?

Metals in general are malleable, meaning that they can be formed into other shapes. In the same way, the discussion is no longer one of whether cryptocurrency will survive, but rather how it will evolve and shape users, and when it will reach market maturity. While not yet well integrated into our daily lives, it is slowly changing how we pay, trade, save, and borrow, as well as how we manage financial risk.

DIGITAL GOLD TRADING

As we look back on the lessons from the digital gold boom, will we see the digital gold industry return to the golden age?

Trading physical gold dates back to 2000 BC when ancient Egyptians began mining the precious metal and the Roman Empire used it as a form of money. Nowadays, traders can buy and sell gold at the click of a button with just an internet connection and a laptop.

Gold as one of the oldest currencies on the planet attracts numerous onlookers and devoted groups such as “gold bugs” with diverse and often opposing interests. The term “gold bug” is a colloquial expression used to refer to people that are particularly bullish on gold.

Gold has traditionally been seen as a store of value, precisely because it is not subject to the whims of governments and central banks as currencies are. But like any commodity, stocks, or cryptocurrency, these are based on perceived value and speculation. Although people differ in their reasons for buying, investing, or trading gold, they commonly share a perception of perceived threats posed to fiat currencies such as inflation, which makes gold attractive. Since gold is priced in relation to fiat currencies, gold will therefore appreciate in value if fiat currencies lose their value.

Even financial experts suggest that gold investments should be a small but essential part of anyone’s investment portfolio. The novice needs to consider and understand the fundamentals that drive the price of gold, get a long-term perspective on gold price movements, and then get a handle of some market psychology.

Once you familiarize yourself with the nuances that may come into play, choose your venue for risk-taking, focused on high liquidity, and easy trade execution.

CRYPTO TRADING

The crypto space is an eccentric mix of idealists and opportunists and of real believers and wild speculators all bound by the same motivation – the business of belief. It is this attitude that separates them from other traders and investors. The infrastructure of exchanges is one of the most important businesses that is built around crypto protocols and the business model of belief.

User sentiment and the rapid evolution of crypto markets, exchanges are no longer about simply trying to provide the most basic infrastructure necessary for buying and selling bitcoin and other digital currencies. Now, it’s even a race towards better compliance and better trading.

Crypto exchanges bear some similarities to foreign exchange (forex), where fiat currencies from across the globe are traded 24 hours a day. When you buy cryptocurrencies via an exchange, you purchase the coins themselves. You’ll need to create an exchange account, put up the full value of the asset to open a position, and store the cryptocurrency tokens in a wallet until you’re ready to sell.

The wallet saves your private key and public address which helps you store, send, and receive cryptocurrencies.

• Private Key: The private key gives you the right to access and send your money.
• Public Address: This is the address where everyone will send you money.

The public address is the one that you will give to others in order to send your money.
DO NOT give out your private key. The private key is for you and you alone. Another aspect is to have the awareness about who will be the custodian of your tokens and or wallet, but that is a topic on its own that deserves a dedicated post.

Monetum’s crypto-fiat licenced Exchange is being processed under the VQF legal framework while the fiat payment /gateway portal bridging crypto to fiat is an EU compliant and regulated entity.

Trading gold on the platform is backed by physical gold and suitable for physical delivery. The gold is stored in Switzerland and is sourced on the Zurich Gold Market ensuring purity/fineness of the metal.

Whether you’re a crypto beginner or a seasoned coiner, accessing a world of crypto and gold services has never been easier. Like any responsible trader or investor, buyers of crypto and digital gold need to evaluate these vis-à-vis their needs, risk appetite, and financial goals before investing.

On a final note, here’s an open question to make readers even more excited about the possibilities what the new economic model promoted by crypto and gold 2.0 are bringing to the new world: China being one of the biggest holders of physical gold, do you think a future pairing of that gold to their CBDC will bring back again the gold standard?

We believe that big winners are not the only ones who simply watch and follow. Join the Monetum journey and be part of the next revolution.