Opinion: Kevin Rusher, founder of Raac
This is an unstable world. This year we saw wrestling wild rides because the gold was pumped and the crypto was caught somewhere in the middle. Investors dropped risk assets and climbed unthreatening rallies. Gold leads a charge.
Although gold is unthreatening, it is not very challenging -working. Unlike cash and treasures, yellow metal does not generate income. Now, more than ever, investors must be able to earn gold – especially in a decentralized financial sector (DEFI).
The only way to earn money from gold is to buy a low level and sales of high. Most investors do not buy gold in this way. This is a reason – in the long term, gold efficiency is usually consistent, if not without a few peaks and the corridor here and there, as we have recently seen.
For example, after the financial crisis in 2008, the price of gold increased by 148%, but in stagnation for almost a decade, before the Covid-19 pandemic pandemic caused another rally, and we will probably see gold if it does not fall from the fresh record when the markets revive. Although it remains an excellent hedge, long -term Gold achievements are not a history of development.
Investors prefer American savings accounts or high performance as part of a sustainable portfolio. While gold can exceed these assets in uncertain times, it offers a better balance of security and predictable income in the long term.
DEFI solution
It is here that DEFI introduces innovations to the oldest resource in the world. DEFI can significantly modernize gold investing, offering the speed and transparency of blockchain -based transactions and the possibility of obtaining returns.
Currently, however, most tokenized gold is much the same as keeping it in the stock exchange fund (ETF). Stablecoin giants, such as Tether and Paxos, have introduced gold -supported tokens, which, as they say, are fully supported by physical, controlled gold reserves, but do not offer any performance.
Last: Bitcoin’s unthreatening dismissal increases during the uncertainty of the trade war
Most DEFI investors prefer liquid, trade assets, such as cryptocurrency and stablelecouins, which can generate attractive phrases. For example, many would prefer to buy a Stablecoin Stadt (USDT) and subject to prizes while maintaining ownership.
Perhaps that is why the capitalization of the gold -supported tokens market remains diminutive. Tether Gold, the most significant gold token in the world, has, for example, a market capitalization of just below $ 835 million, while Paxos Gold is about $ 799 million. In total, it corresponds to only 1% of the USDT market capitalization.
Unlocking income from the oldest assets in the world
To unlock the full Gold potential, we must go a step further, creating a DEFI ecosystem, in which tokenized gold is actively launched-borrowed, borrowed and integrated with performance strategies.
One of the possibilities are companies such as Golders, is to issue tokenized versions of their reserves, which can be transformed into stablelecoin, which can then be placed to get performance. Using protocols whose liquidity mechanisms enable trade in Stablecouins tokens and real assets (RWA), owners can take advantage of further crops in the entire DEFI ecosystem.
In addition to the benefits of profitability, blockchain technology means that investors in tokenized gold can benefit from the flexibility of 24-hour trade, close to real-time discovery in real time and almost instance without any damage to the stability of assets.
The future of investing gold
Perhaps it is ironic that – like governments around the world are starting to make a seal for digital financing – gold becomes a highly desirable commodity again. Interest in society will enhance because governments essentially ratify digital finances. At the same time, the appetite for gold in these uncertain times will also enhance.
DEFI can combine these trends and start the natural evolution of gold ownership, which is a solid bridge between established and digital finances. While gold in established markets attracts investors looking for stability, DEFI provides opportunities that do not violate this stability, because it is fresh and unique profitability.
Gold has been captivating humanity for thousands of years. This is the foundation of myths, a standard of wealth and final protection against uncertainty. But in today’s financial world it requires update.
Thanks to the integration of gold with the DEFI ecosystem, we could unlock its true potential-not only as a magazine of values, but as assets generating income. The oldest resource in the world is finally on the edge of digital evolution.
Opinion: Kevin Rusher, founder of Raac.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
