Tether Gold is a specialized digital currency similar to Bitcoin and Ripple issued by the Tether Foundation. This unique currency has many advantages and has attracted the attention of crypto users. Tether Gold Cryptocurrency is worth one ounce of gold and is a stable coin-like Tether. This means that like the price of Tether, which is always fixed and equal to 1 dollar, the price of Tether Gold is always equal to one ounce of gold. Gold is one of the valuable assets with a long history that has many followers. But buying it comes with many problems such as the high cost of transportation and maintenance.
Tether Gold digital currency, backed by Tether and gold, aims to provide the public with the necessary conditions for easy purchase and maintenance. In this article on the Digital Currency Signal blog, we’ll take a look at what Tether Gold is and how it works. Therefore, if you want to fully familiarize yourself with this cryptocurrency, we invite you to continue working with us.
What is Tether Gold?
The Tether Gold (XAUT) is a new product launched by Tether. The idea behind XAUT is to have a gold-backed cryptocurrency. An asset that historically increases in value over time. This coin provides the security of a digital asset and the security of a connection to physical gold (XAUT). Tether Gold digital currency is a single asset backed by gold and is known as a powerful stablecoin. The price of Tether Gold is equal to the price of one ounce of gold. This coin made it easier for the public to invest in gold. People who buy XAUT cryptocurrency will have access to its unique benefits. Owners can own the gold and save themselves from problems like high gold storage costs. Keeping gold safe and access restricted.
How does Tether Gold (XAUT) work?
According to Tether’s blog post, and as previously mentioned, the Tether Gold cryptocurrency is backed by gold stored in a secure vault in Switzerland. The company says:
Available as an ERC-20 token on the Ethereum blockchain and a TRC-20 token on the Tron blockchain, XAUT tokens can be transferred from buyers’ Tether wallets to any address on the network. In addition, Tether Gold (XAUT) is the only product among competitors that offers direct control over security fees and physical storage of gold, which is securely stored in a Swiss warehouse and follows the best security and anti-threat measures. Today Tether Gold (XAUT) is the best way to store gold. However, it is worth noting that Tether has been criticized in the past for its audibility, claiming that only 74% of Tether’s stablecoins are backed by US dollars. Whether any XAUT token will be fully backed by gold remains to be seen.
What is the purpose of Tether Gold?
Tether Gold aims to provide users with a digital token trading tool with gold-like scarcity and price stability. Additionally, the XAUT token is an ERC20 token. Each XAUT token represents an ounce of fine gold delivered to London in a Swiss vault. This token is divisible to six decimal places. Also, when the token is transferred to another address in an on-chain transaction chain, Tether Gold will reset the physical gold associated with the XAUT held at each address. This process is done by representing token holders to reduce the number of keywords associated with each XAUT address. This redistribution takes place immediately so that each token can always represent the actual gold ownership of a particular gold bar.
XAUT holders enjoy the combined benefits of physical and digital assets. XAUt token holders can enjoy gold ownership while avoiding the disadvantages of physical gold, such as high storage costs and limited availability.
What is the use of Tether Gold?
Although many cryptocurrency investors and traders currently prefer dollar-backed stablecoins, there may come a time when gold is preferred. For example, when there is an economic or other financial crisis, precious metals such as gold tend to depreciate from the value of stocks and fiat currencies because people have held the value of precious metals for at least five millennia. Therefore, having a gold-backed cryptocurrency is beneficial in such cases. If you’re looking to store or buy gold but don’t have a safe place to go, Tether Gold is for you.
The Future of the Tether gold project
Although the Tether Foundation is one of the largest crypto companies by turnover, and this could seriously affect the success of its digital gold, large companies such as Pax also offer gold-backed tokens. On the other hand, the transparency of the Tether Foundation, as well as the legal problems of this foundation, as well as the emergence of the Central Bank Stable Coin (CBDC), and, as a result, the pressure on Tether, maybe endangers the survival of this company. If the U.S. central bank and other economic powers find a stablecoin and Tether is broken, the company has made it clear that users’ assets will not be protected, and users’ assets will be lost.
Key points about Tether Gold (XAUT)
- The Tether Gold token is issued by the Tether company.
- Tether Gold can be stored in Ethereum and Tron wallets and can be transferred to others.
- Tether Gold Token (XAUT) is backed by physical gold, while Tether Cryptocurrency (USDT) is backed by US dollars.
- Each unit of Tether Gold cryptocurrency represents ownership of one troy ounce of Good Delivery London gold.
- Tether Gold (XAUT) cryptocurrency is designed and implemented on the ERC-20 standard of the Ethereum blockchain and the TRC20 network of the Tron blockchain.
What is the Tether Gold digital currency wallet?
Tether Gold is one of the new and unique currencies in the crypto world that is based on gold. Most valid wallets support this currency. This shows the strength and value of XAUT cryptocurrency. If you are more familiar with the Tether Gold wallet; You can store your belongings in a safe place. In general, the best Tether Gold cryptocurrency wallets are:
- Coinbase Wallet
- Trust Wallet
- Atomic Wallet