▶️ Should You Buy Gold-Pegged Crypto Assets? | EP:479

Hey everyone I'm Scott Cunningham aka @scottcbusiness and today we're going to be talking about   gold pegged stable coin cryptocurrencies it's 
quite a mouthful but really it's just being   able to buy gold that is backed one to one uh and 
it's in the form of cryptocurrency so it's all of   these different um options are essentially saying 
that they've got gold they're storing it somewhere   typically it's um it's it's priced out by the 
gram sometimes by the ounce it varies but either   way um they've got the one-to-one they're storing 
it somewhere and uh typically you're also able to   send in the crypto and redeem the gold physically 
as well i looked at the top recommendations   from crypto coin market cap there really 
aren't as many as you'd think that are actually   reliable uh have a lot of volume etc so 
we're going to dive into gold backed crypto   uh does it even make sense to be investing 
it at all what advantages does it have over   actual physical gold investing and uh does it make 
sense to even invest in that versus bitcoin and   other scarce assets we're gonna be diving into 
all of this today and more after a quick word   from my sponsor today which is actually me um the 
best thing that you can do to help me out is just   to like share subscribe and ideally watch this 
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highly appreciated uh and yeah let's get back   to the video so i'll just pull up on my screen uh 
this is the recommendation from the five leading   gold backed cryptocurrencies from coin market 
cap and that's paxos gold perth mingle token   digix gold uh global rather tether gold meld gold 
and um yeah i mean this one was kind of hard to   actually like utilize and track and find places to 
trade it on i'm sure there's a way to do it but uh   it's too much effort so uh perth mint does 
not track super accurately neither does digix   from what i could see it doesn't look like 
it's tracking super accurately to gold or   nearly as accurately from what i 
could view um as paxos and tether gold   the issue with tether gold is that um in the 
recent you know removal of all these different   cryptocurrencies from uniswap that included 
tether gold so it kind of got smacked down   with all of those um tokenized stocks and things 
like that so it's been delisted in a lot of places   so if i had to nail it all down to one 
at the end of the day it would be paxos   gold and just for your reference here this is a 
year chart for paxos this is the year chart for   tether very very similar because they're actually 
tracking very accurately with gold um but you'll   notice actually that gold has not performed 
extremely well in recent years while gold   is a great asset and generally it's trending up i 
mean even in the last 10 years it hasn't changed   dramatically unless you bought you know past 
2013 so while gold is a very good defensive asset   i mean at the end of the day if you're 
comparing this to many other cryptocurrencies   it's not really you know comparing very well um 
so that's really important to keep in mind and   uh the other cryptocurrencies even the ones 
that aren't as accurately pegged from my   opinion or from what i could see all of these 
are on here which is nice you know you got dgx   pax g and um all of them really but uh 
except for x-a-u-t i mean it's on here   but you can't actually trade it because um it 
was removed in that in that whole debacle and   you can see here that if you try to do it it is 
an unsupported asset unfortunately anyways though   you know uniswap aside you've also got to consider 
that almost every gold option that i've seen is   built on the ethereum blockchain 
so you've also got to factor in   the amount of money that you're going 
to be spending on transaction fees   one of the big uh solutions or reasons to even use 
crypto backed gold is to get around some of the   inadequacies of regular gold and some of those 
are uh high transaction fees because you have to   you know if you want to get the full value 
for your gold you have to actually go in   and bring it to someone like a professional they 
have to make sure it is real gold and go through   that process with you versus um you know you 
could go to like a cash for gold store and get   significantly less because it's not like an expert 
who's gonna go through all these tests or maybe   they even will but they're not going to give you 
the same amount so you do have to go through that   that's a process to actually receive the gold 
a lot of times you have to ship it it took   up to a month to actually get the gold so there's 
all these different you have to pay for the   shipping costs so there's all these different fees 
and lots of wait time attached to physical gold   plus you have the issue of having it being stolen 
because you can't hold it in a decentralized   wallet so if you put it in the bank you know 
you're at the whims of the bank if you keep it   at home it could be physically stolen or lost so 
there's lots and lots of different um drawbacks to   physical gold and a lot of those are improved 
with crypto but because a lot of these are on   ethereum currently with the current ethereum 
gas fees um you're not really getting around   those transaction fees and you actually might 
end up spending more money on the transaction   fees than you would with physical gold so that 
is a massive massive downside to doing that   though you know it is nice to be able to have 
that diversification with your crypto into gold   i would argue just looking at the charts bring 
this back up just looking at the charts and how   poorly gold has performed over the past 10 years 
that even with the volatility of bitcoin you're   still probably better off just trading bitcoin and 
or investing in bitcoin rather because if we look   at bitcoin over the last you know several years 
it's really just been most like it's mostly going   up there are dips but i mean there's dips in gold 
too so gold isn't that safe um you could have seen   a massive loss if you had sold after uh 2013 for 
a long time like you could have seen huge losses   here and um you know that's really unfortunate 
but it really does seem like a lot of the run-up   for gold has already happened and maybe it's going 
to keep going up alongside inflation i'm sure it   will but um you know gold isn't as great as it's 
kind of put out to be when we look at bitcoin   generally you've got a very good uptrend and you 
don't have to wait years and years and years to   recoup losses for me it only took about three 
years when i bought in uh like i bought in here   it went down and or no i bought in 2017 not not 
there it was the last run which looks very very   small compared to this but a lot of times you can 
buy in at the peak of bitcoin and you know wait a   couple years and then you're in the greens so you 
know i i think it's important to keep this in mind   obviously bitcoin is way more volatile way 
more risky to do anything in cryptocurrency   and you know it doesn't have that underlying 
gold asset which a lot of people would appreciate   but bitcoin truly is digital gold in that 
all those things that i mentioned bitcoin   has cheaper transaction fees bitcoin can be sent 
instantly there's no fraudulent to bitcoin um   lots and lots of issues with gold or drawbacks 
rather con like just negatives to holding gold a   lot of those are eliminated with cryptocurrency at 
least specifically with bitcoin if you're trying   to hold a scarce asset that will go up alongside 
inflation and generally appreciate over time   now while none of this is financial advice uh 
more so financial entertainment if you will   this is very important to keep in mind because 
for a long time i thought it would be great   to be diversifying into gold i started off by 
buying physical gold and after realizing how   just clumsy and tedious and just really just not 
a well optimized or efficient process with the   gold transactions acquiring it storing it etc 
i realized that this isn't going to be a very   useful asset to me while it is good to have if i 
need to quickly sell it if lots of things might   come up um there's too many complications built 
in but with crypto you know you could have a huge   run up overnight get an alert wake 
up and sell now i think that's much   more liquid and the fact that you can do that 
makes it could be the difference of a lot of   money depending on how much you've invested if 
you're invested in gold and it starts going crazy   with its value you know you've got to get it 
all together um you've got to go and actually   go through that process that i mentioned and 
i mean if you're carrying around hundreds of   thousands of dollars of gold too you probably 
are a little concerned about being robbed etc so   there's lots and lots of caveats to physical 
gold versus crypto gold and then versus bitcoin   if i was going to be forced to pick one at the 
end of the day i would go with bitcoin the only   advantage physical gold has is that um you could 
potentially directly spend it and say the internet   went out forever or the electricity around 
the world you know stopped working and we   had a global blackout you could still use 
gold but i feel like that would basically   be an apocalyptic scenario and i don't know if 
gold would even really be valued that highly   those kinds of excuses or that reasoning isn't a 
very sound way to invest investing just based on   when you think the apocalypse is going 
to happen it's not a very sound way to   build money in my opinion so i've opted for 
bitcoin because this is truly the future and um   yeah so that's pretty much it uh let me just bring 
up my notes make sure i touched on everything   yeah the main comparison was just that if you 
were going to buy crypto pax g is probably better   because you can still trade it on uniswap and 
it's on significantly more exchanges whereas xaut   is only found on a few exchanges and it was 
even removed from from uniswap which is really   unfortunate but you know it is what it is 
um and at the end of the day i don't really   advise holding um derivatives of assets like 
i don't like the idea of wrapped bitcoin   or you know all these all these different things 
that people are creating where it's not even the   real asset anymore it's like an asset of the asset 
of the asset um so i'm not a huge fan of doing   that with gold either but i can appreciate that 
if you do want to have gold but still have the   versatility of crypto that is the best way that 
you could do that with either of those two coins   however i still recommend that um 
if you're trying to hold a scarce   asset online like in a digital currency the 
best one is still going to be bitcoin by far   um it's still going to be much more volatile but 
at the end of the day the average gain for bitcoin   since inception i believe is still over 200 
whereas gold is not even remotely close to that   so you decide at the end of the day what is 
more risky what is too risky for you but for me   uh i think bitcoin makes the most sense it's 
funny because a lot of people in my investing   groups nowadays would say investing in just 
bitcoin and ethereum is too conservative   and uh people are looking to play much more 
risky plays so you know i would treat bitcoin as   digital gold for the most part obviously there 
is tokenized gold but um it's just not going   to provide you that same those same level of 
benefits that you're going to get from holding   bitcoin so that those are my thoughts on on crypto 
tokenized gold um there's there's so many out   there i mean you could get really down a rabbit 
hole just looking through potential options but   it's going to be hard to really verify that they 
actually have the gold they're storing it properly   safely securely and reliable like the company 
is reliable to not steal your gold because again   they could do something malicious they could take 
your gold themselves um they could be you know   only really giving you 0.9 ounces like 0.9 grams 
or whatever when you're supposed to get one full   grain all these different things who knows um you 
know cryptocurrency allows for a lot of anonymity   and lack of accountability so i wouldn't just be 
going and investing in random gold tokens um these   few are probably okay i haven't deeply looked 
into how they store the gold and ensure that it's   actually backed one to one because that's always 
going to be a concern for any kind of stable   backed cryptocurrency whether it's backed by us 
dollars or it's backed by gold or what have you   one of the big concerns is always verifying that 
that's actually legitimate and that there can't be   some sort of human error or malice introduced that 
can ruin that process and centralize it to a point   of wherever they control anyways those are my 
thoughts uh i i still think if you're way better   off with bitcoin let me know what you think though 
what are you investing in uh does the idea of   tokenized crypto gold interest you at all are you 
just sticking with bitcoin what would you suggest   otherwise for a scarcity-based asset uh and 
you know like something that is hedged against   inflation what are you investing in let me know 
all that good stuff in the comments below if you   did watch to the varian make sure to comment 
hashtag number one ham in the comments below   and that way i know that you watched to the very 
end and i really appreciate those of you who do   anyways thank you so much for watching I'm Scott Cunningham aka @scottcbusiness signing off cheers

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