The world economy has been suffering from the impacts of the COVID-19 pandemic, and then attention turned to the ongoing conflict between Russia and Ukraine. Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), warned in a speech at the World Economic Forum (WEF) in Davos that the economy faced the “biggest test since the second world war.”
The effects of the war will operate through many different channels and are likely to evolve if the conflict deepens further.
The stock markets are draining, the cost of living in Europe is rising, and investors are surrounded by uncertainty as key central bankers, such as the US Federal Reserve and the European Central Bank (ECB), try to handle inflationary pressures while avoiding a potential recession.
This is a difficult time for investors since it’s hard to determine which way to go. This is why safe-haven assets are so important at the moment.
National currencies are devaluing in real time, with inflation reaching 8.5 percent in the US and 9.0 percent in the UK. Investors need trustable assets that would preserve value in the long term, and gold has traditionally been the best option. The price of the physical gold broke above $2,000 for the first time since August 2020 in March, almost reaching the all-time high.
Many investors desire to obtain exposure to gold because it might act as a hedge against potential hyperinflation. Given the challenges of buying and keeping actual gold, both institutional and ordinary investors invest in gold derivatives such as futures and options
ComTech FZCO Offers a Unique Gold-Backed token ComTech Gold – $CGO
There isn’t a single investment-grade gold product that is both simple to own and trade. Physical gold is difficult to move and store. Gold futures are simple to trade, but you don’t own the underlying commodity.
Our coin provides a solution by providing a gold-backed cryptocurrency.
One ComTech Gold token – $CGO represents one pure gram of gold. Fully backed, redeemable, and regulated.
Each Purchase and Sale of Gold will result in the actual delivery of Tokens from the Seller to the Buyer following Shariah Compliance. The backing of Gold and the Purchase/Sale of Gold Token will be completely auditable, allowing it to be completely tracked from Creation to Purchase to Sale to Redemption.
You can check the Whitepaper of the ComTech Gold to know more about this Crypto Gold token.
Why Is Gold-Backed Crypto Essential?
Central bankers were forced to lower interest rates to record lows in the middle of the COVID-19 pandemic in order to sustain investment and consumption. Investors are looking for yield-generating alternatives elsewhere, such as the growing decentralized finance (DeFi) industry, as a result of the low-interest rate environment.
Stablecoins play a leading role in crypto adoption, as they address the volatility risk. However, the recent crash of TerraUSD (UST) – a USD-backed algorithmic stable coin – has caused turmoil in the crypto market, triggering a massive selloff, with $1 trillion in the aggregate market cap being wiped out in a matter of days.
How ComTech Gold (CGO) can help?
- Gold is the decentralized asset class
- Gold is a bearer asset
- ComTech Gold is backed by fully backed gold (See audit Proof)
- Maintaining liquidity with ComTech Gold (CGO) of your project will de-risk from stablecoins
- De-risk from fluctuations of capital markets
- Directly redeem gold via regulated channels as min 1 KG bars. A gold bar can be delivered to most the countries worldwide with small logistic fees
- Mint Gold via regulated channels as min 1 KG bars
More details are available at Website and CGO token is already listed with the exchange like Bitrue.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/06/what-is-the-importance-of-a-gold-backed-cryptocurrency-today-should-you-get-involved-in-the-latest-cryptocurrency-craze