BitPay Integration Lets Users Buy Gold With Cryptocurrency (#GotBitcoin)

OneGold, an online marketplace for buying, selling and redeeming precious metals, announced a partnership with BitPay on Jan. 13 that will allow crypto users to purchase gold and other valuable metals on Android and iOS devices. BitPay Integration Lets Users Buy Gold With Cryptocurrency (#GotBitcoin)

Through the integration with BitPay — a leading Bitcoin payment service provider that currently supports over 30,000 merchants, including Microsoft and Avnet — OneGold’s new mobile app will accept payments in Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and various stablecoins. In addition, BitPay customers will save 2% when using the service on OneGold.com.

OneGold CEO Kenneth Lewis told Cointelegraph that the partnership will make wealth preservation available to everyone at the lowest cost of ownership available on the market:

“Cryptocurrency holders are a natural fit as precious metals investors and can utilize OneGold to balance their investment portfolio. Using BitPay, cryptocurrency holders can quickly buy gold or silver at institutional pricing, save 2%, and create a nice balanced mix of gold, silver, and cryptocurrencies.”

Cryptocurrency And Its Relationship To Gold

Bitcoin has often been compared to gold, with Bloomberg recently reporting that it is equivalent to digital gold, as there is a correlation between the two that extends deeper than both being safe haven, limited assets.

In a new report, Bloomberg market analyst Mike McGlone characterizes 2020 as a prime year for safe-haven assets, suggesting that movements in gold will act as a proxy for BTC’s price performance.

McGlone highlights the recent price increase in Bitcoin’s value following the U.S.-sanctioned killing of Iranian general Qassem Soleimani. Shortly after this event, both the price of Bitcoin and gold went up.

McGlone noted, “The precious metal reached a seven-year high of $1,600, while its digital protege followed, netting a 20% rise.”

Notably, stablecoin operator Paxos has created a crypto-asset redeemable for physical gold. Paxos launched PAX Gold (PAXG), a gold-backed ERC-20 token in September 2019, claiming that the product is the first crypto-asset redeemable for physical gold.

According to a report, each PAXG token will be back by one fine troy ounce of London Good Delivery gold. Token holders reportedly own the gold it represents, but the tokens can be moved like any other ERC-20 assets, which Paxos notes is simpler than shipping gold.

Paxos’ stablecoin resembles the service model provided by OneGold, which was founded by precious metals dealer APMEX and alternative asset manager Sprott. The company provides millions of global clients with the option to digitally hold precious metals. When OneGold users are ready to take possession, they can convert their precious metal holdings into physical metals, which are shipped by APMEX the same business day.

Updated: 3-9-2022

Market Cap of Gold-Backed Cryptos Surpass $1B As Yellow Metal Nears Record High

Stagflation fears appear to have boosted demand for gold and crypto tokens backed by the yellow metal.

Crypto tokens tied to gold, a traditional inflation hedge, continue to see solid growth as the spectre of stagflation hangs over the global economy.

Taken together, the market capitalization of the top gold-backed coins – PAX gold (PAXG) and tether gold (XAUT) – rose above $1 billion early this week, marking a 60% increase on a year-to-date basis, according to data provided by Arcane Research. The total market capitalization of all cryptocurrencies has declined 17.8% to $1.80 trillion this year, per chart platform TradingView.

“The rallying gold price seems to have attracted more crypto investors to the gold-backed tokens,” Arcane Research said in a weekly note published on Tuesday, adding there are only two gold-backed tokens of considerable size: PAX gold and tether gold. One PAX gold and one tether gold represent one troy fine ounce of gold.

The precious metal has risen nearly 10% this year to trade above $2,000 per ounce. On Tuesday, prices narrowly missed the record high of $2,075 reached in August 2020.

The ongoing Russia-Ukraine war has sent prices of all oil, wheat and other commodities skywards, stirring up fears of stagflation – supposedly a best-case scenario for store of value assets like gold and a worst-case scenario for risk assets. Stagflation is a combination of red hot inflation and stagnant economic growth.

“Stagflation and gold are better bedfellows than anything you will read in ’50 Shades of Grey,’ and once gold comprehensively broke $2000.00 overnight, the rally accelerated sharply as expected. Gold rocketed 2.63% higher to $2,050 an ounce, edging slightly higher to $2,053 in Asia,” Jeffrey Halley, senior market analyst, Asia Pacific, Oanda, said. “The stagflationary factors that are so supportive of gold are persisting and will remain so.

“Stagflation is a serious risk and a higher and longer inflation is close to a certainty,” Singapore’s Monetary Authority said early on Wednesday, according to ForexLive.

While the crypto community considers bitcoin an inflation hedge, the top digital asset tends to move or less in tandem with high-beta stocks, perhaps because it is also an emerging technology sensitive to expectations of monetary tightening by the U.S. Federal Reserve and other central banks. The cryptocurrency is down 2% this year.

“Bitcoin (BTC) has underperformed in this uncertain macro climate, but many investors still view it as an inflation hedge,” Arcane Research noted. “Gold tokens can be helpful tools since they allow crypto investors to diversify inflation bets through familiar crypto market infrastructure.”

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BitPay Integration Lets Users Buy Gold With Cryptocurrency (#GotBitcoin)

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