DigiX Gold Review
When investing in virtual currency, you need to do your research. We provide you with reviews of each world top cryptocurrency out there, so that you can find the best crypto coins to invest in for you. This is a review of DigiX Gold.
Digix is building the platform for trading DGX on the Ethereum blockchain. The company is based in Singapore, and will store physical gold for each token issued on Ethereum. However, by having Gold in token form, it gains the ability to divide into parts in order to facilitate micro-transactions. The Digix tokens will also be redeemable for gold bars.
There are two different tokens procured by DigixDAO.
The first is DGX – or Digix Gold Tokens – and the second is DGD – Digix DAO Tokens. More on the background on the DGD tokens can be read in our post about DigiXDAO. The DGD tokens can be exchanged for DGX tokens after fees of transactions have been deducted. However, both tokens should be considered if one tends to utilize the DigixDAO blockchain fully. At the time of writing, there are some 2 million DGD tokens in circulation. DGD holders get to claim rewards on transaction fees of DGX. Transaction fees are at 0.13% of the amount transacted.
So, each DGX token represents 1 gram of 99.99% LBMA standard gold. The company regard themselves as parallel to E-gold, which at the peak was processing over $2 billion in transactions per year in 2006. It was later shut down due to allegations of illegal activity.
While gold is a tremendously valuable asset, there are some downfalls to buying and selling it as a commodity. It is quite raunchy and calls for very secure storage. Because of the store-of-value aspect, the asset is prone to attracting high fees for insurance, and there are many middlemen who will try and boost their fees to maximise their profit to your cost. Trading digital gold is a good solution – the gold is real, stored safely and securely in one place (in Singapore) while you can trade all over the world. DigixDAO promises to keep their gold trading prices low, making them a very tempting prospect if trading in gold is something that you are interested in.