In flying markets, like RWAS, like gold is a lifeline

Opinion: Kevin Rashir, Rak Founder

It is a volatile world there. This year, we saw the arrows taking a ground journey where the gold was pumped and the encryption was arrested somewhere in the center. Investors threw the assets of risk and defended safe havens. Gold leads the shipment.

While gold is safe, it does not work hard. Unlike criticism and cabinet, the yellow metal does not generate income. Now, more than ever, investors should be able to win the return on gold – especially in the decentralized financing sector (Defi).

The only way to earn gold is a low purchase and a high sale. Most investors do not tend to buy gold like this. This is for a good reason – in the long run, Gold’s performance is usually constant, if not without peaks and a few lists here and there, as we have seen recently.

For example, after the 2008 financial crisis, the price of gold increased by 148 %, but it is stagnant for a decade for almost a decade before the Covid-19 was preceded in another march, and we may see the gold contract, if it does not fall from the new record once the markets revive. While it is still an excellent hedge, the long -term Gold record is not a growth story.

Investors are preferred by the United States of the Treasury or the high -yield savings accounts as part of a balanced portfolio. Although gold may outperform these assets at unconfirmed times, it provides a better balance in security and an impartial income in the long run.

Defi solution

This is where Defi brings innovation to the oldest assets in the world. Defi can significantly update gold investment, providing the speed and transparency of Blockchain -based transactions and the ability to earn returns.

Currently, though, most of the distinctive gold is the same as it carries in a trading box (ETF). Stablecoin giants such as Tether and Paxos launched gold -backed symbols, which they say are fully supported by the audited physical gold reserves, yet no return.

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Most Defi investors prefer trading liquid assets such as cryptocurrencies, which can generate attractive returns. Many prefer, for example, purchase USDT (USDT) from Tether (USDT) and share it, and get rewards while maintaining ownership.

Perhaps this is the reason that the market value of gold -backed symbols is still modest. Tether Gold, the most important golden symbol in the world, has the market value of less than $ 835 million, for example, while Paxos Gold sits about $ 799 million. Completely, this is only 1 % of the maximum USDT market.

Opening income from the oldest assets in the world

To cancel the full Gold capabilities, we need to take the distinctive code step forward by creating a DEFI ecological system where the distinctive gold is placed in the activity-borrowed activity, loan and integrating it into the limitations of the return.

One of the possibilities is for companies like gold miners is the issuance of symbolic versions of their reserves that can be converted into Stablecoins, which can then be ignored to earn the return. Protocols to benefit from liquidity mechanisms that allow Stablecoins trading and asset symbols in the real world (RWA), holders can benefit from additional productivity opportunities throughout the Defi ecosystem.

Besides the benefits of yields, Blockchain technology means that investors in distinctive gold can benefit from 24 -hour trading flexibility, near real -time prices and settlement close to fixed without prejudice to the stability of the origin.

Gold investment future

Perhaps it is paradoxes, just as governments around the world have begun to put a seal of their agreement to digital financing – gold has become a very desirable commodity again. The public’s interest in this will grow with the certification of digital financing mainly. At the same time, the appetite for gold will increase at these unsure times.

Defi can combine these trends together and start a natural development in gold ownership that provides a strong bridge between traditional and digital financing. While gold inside traditional markets attracts investors looking for stability, Defi brings opportunities that do not compromise this stability, because it offers new and unique opportunities.

Human gold has been captured for thousands of years. It is the basis of myths, the level of wealth and the final hedging against uncertainty. But in the world of financial today, it needs to be promoted.

By integrating gold into the Defi ecological system, we can open its true potential-not only as a tribe of value but as the origin of the income generator. The oldest safe haven in the world is ultimately on the verge of digital development.

Opinion: Kevin Rashir, Rak Founder.

This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.