• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Nexo Logo

Surging Demand and Seized Supply Spark Rapid Growth in Tether’s Digital Gold

Tony Spilotro by Tony Spilotro
2 years ago
in Bitcoin, Cryptocurrency news
Reading Time: 3 mins read
Advertisement

As fears over the coming economic recession continue to mount, demand for gold continues to surge. And as mining operations have frozen due to the coronavirus outbreak, there’s a recipe for dwindling supply that could have an astronomical impact on the asset’s value in the months ahead.

The surging demand and lack of supply, however, has resulted in the rapid growth of digital versions of the precious metal. And we’re not talking about Bitcoin – it’s Tether’s version of digital gold as well as other stablecoin competitors who are taking advantage of the gaping hole in the market that currently needs filling.

Coming Recession Sparks Demand For Gold, Coronavirus However Cripples Supply

At the start of March, coronavirus concerns reached peak panic, causing a massive selloff of all asset types, including gold, Bitcoin, and the stock market.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Records were broken for the steepest collapse in decades across most assets, while newer, speculative assets like Bitcoin and other cryptocurrencies were decimated in the collapse.

Gold, however, absorbed the impact better than most assets and has already reclaimed highs prior to the selloff.

Related Reading | No Haven Safe: Silver, Gold and Other Precious Metals Nosedive Alongside Bitcoin

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Gold has been used in trade for thousands of years, has been historically used as a currency, store of wealth, and a flight to safety for capital during a time of crisis.

One of the biggest crises the world has ever witnessed is here, and now is the asset’s time to truly shine – no pun intended.

The glittering and glistening precious metal may be used in ornate jewelry and to show off success, it’s also used to protect capital from the impact of inflation during economic downturns.

Due to the asset’s limited supply, its value remains relatively stable and often increases during recessions.

That limited supply, while can have a dramatic effect on increasing the asset’s price, is also causing issues now that mining operations have ceased or slowed due to lockdowns related to the pandemic.

It’s caused many banks to struggle to deliver physical bars to investors. To fill the hole left by this supply shock and the growing demand for gold, Tether, and Paxos – two competing stablecoins – have launched digital tokens representing ownership over physical gold.

Stablecoin Tether Satisfies Need With Digital Token Representing Physical Bars

With investors are struggling to gain access to physical gold, Tether or Paxos version of digital gold isn’t just the next best thing, it’s all-around better than physical gold.

The biggest benefit Bitcoin has as the digital gold counterpart over the precious metal itself, is the fact that it only exists digitally and therefore can be easily transferred from owner to owner, or wallet to wallet.

Related Reading | Crypto Analyst: Digital Gold Narrative Out The Window Amidst Crisis 

However, these actual versions of digital gold represent physical gold bar allocations that can later be redeemed for physical gold bars so long as the investors hold at least 1 gold bar’s worth of the tokens.

Digital versions of the precious metal can more easily be broken down into smaller demonizations as well, encouraging more small-time investors to dip their toes into the asset.

The demand for this type of asset has exploded during the coronavirus outbreak.

tether gold xaut

Tether launched its XAUt token in January 2020 and has already grown its supply to over 30,000 tokens or over $48 million in market cap.

And with the recession not even really getting started yet, and the supply of gold likely not set to increase until after quarantines end, demand for the digital gold Tether tokens will only continue to increase from here.

Featured image from Shutterstock
Tags: goldPaxos GoldtetherTether GoldXAUtxauusd
Tweet123Share212ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a global remote work leader with a decade of award-winning content experience and excellence. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter at @tonyspilotroBTC and feel free to drop me a line if you would like to work together.

Related Posts

Intel Blockscale chips promotional image

Intel Ships Blockscale ASIC Chips To Selected Bitcoin Mining Companies

3 hours ago
Ethereum

Active Ethereum Addresses Touch 2020 Levels, Will Price Follow?

5 hours ago
Cardano (ADA)

Cardano Vasil Hard Fork On The Horizon, Will ADA’s Price React To The Upside?

8 hours ago
Bitcoin Long-Term Holder Capitulation Approaching Bottom Zone, But Not Quite There Yet

Bitcoin Long-Term Holder Capitulation Approaching Bottom Zone, But Not Quite There Yet

9 hours ago
bitcoin

Mounting Support For Bitcoin At $19,000 As Market Ushers In A New Week

11 hours ago
Ethereum Gas Fees Falls To Record Low, Price Consolidates Around $1,000

Ethereum Gas Fees Falls To Record Low, Price Consolidates Around $1,000

11 hours ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

Mehracki (MKI), Dash (DASH) and Curve DAO Token (CRV) – 3 Solid Coins to Help You Survive the Crypto Crash

July 4, 2022

GBEX: The exchange token of a “new kind”.

July 4, 2022

Web3 Delight Lagos – Breaking barriers to pave the way for the digital future

July 4, 2022

LBank Exchange Will List DOTORI (DTR) on July 4, 2022

July 4, 2022

WorldPF (WDPF) Is Now Available for Trading on LBank Exchange

July 4, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.