A mix of a cryptocurrency and gold called PAX Gold fills the gap between the two types of investments. It delivers cryptocurrencies’ stability and security.

Nonfungible Tokens (NFTs), cryptocurrencies, and other contemporary investment possibilities have been popular in recent years. Physical goods like gold are still in high demand, though. The market value of cryptocurrencies worldwide topped $2 trillion in 2021. Investors must now ask themselves: Should I select gold or cryptocurrency?

Gold has been used successfully as a store of wealth and a medium of trade for thousands of years and is still in use today. Gold has remained significant despite the development of decentralized digital currencies. Although acquiring gold might be challenging and out of reach for the majority of individual investors. One cryptocurrency firm, PAX Gold (PAXG), aims to increase the accessibility and democratic nature of gold ownership by enabling investors to exchange it similarly to other cryptocurrencies.

Investors used to traditional options are drawn to PAX Gold because it has figured out a way to integrate bitcoin with actual gold holdings. In this post, we’ll talk about PAX Gold (PAXG) and examine how it operates.

What Is PAX Gold?

A cryptocurrency called Paxos Gold is backed by actual gold reserves that are kept by Paxos, a for-profit business in New York. Each PAXG token is equivalent to one troy ounce (t oz) of a 400-ounce London Good Delivery gold bar kept in a London vault run by Brinks Security. The London Bullion Market Association (LBMA) certified gold bars that support the Paxos cryptocurrency PAXG are redeemable for physical bullion.

A cryptocurrency called Paxos Gold is backed by actual gold reserves that are kept by Paxos, a for-profit business in New York. Each PAXG token is equivalent to one troy ounce (t oz) of a 400-ounce London Good Delivery gold bar kept in a London vault run by Brinks Security. The London Bullion Market Association (LBMA) certified gold bars that support the Paxos cryptocurrency PAXG are redeemable for physical bullion.

How does PAXG work?

The PAX Gold token may be transferred across wallets, exchanges, decentralized finance (DeFi) platforms, and other Ethereum-based apps because it is based on the Ethereum blockchain. Users of PAX Gold can exchange, stake, or redeem their tokens for fine gold bars. The London Bullion Market Association has authorized these gold bars, which are kept in safe vaults all around the world. Even with these excellent security measures and premium gold, PAX Gold only levies a 0.02% transaction cost. There are no custodial or storage fees.

Can I trust Pax Gold? In addition to being certified to a gold level, PAX Gold also runs consistently and openly. The New York Department of Financial Services has legal control over PAX Gold and its holding firm, Paxos Trust (NYDFS). Additionally, PAX Gold safeguards both the customer’s assets and those of the business separately, making sure that the customer is safe in the case of bankruptcy.

To make sure that its gold holdings correspond to the quantity of PAXG tokens, PAXG is subject to monthly audits from a third-party auditing company. The attestations’ results are published on the Paxos website. Additionally, the developers of PAXG conduct routine audits of smart contracts to check for any potential flaws or network vulnerabilities.

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