What is it?

Digix Gold Token (DGX) is a commodity-backed stablecoin.

The commodity used is gold.

To be more precise, DGX is a digital token making use of the Ethereum blockain and whose value is backed by 99.99% gold cast bars from London Bullion Market Association-approved refiners.

The London Bullion Market Association (LBMA) is a wholesale over-the-counter market for the trading of precious metals.

The price of one Digix Gold Token (DGX) is the same as 1 gram gold.

The use of blockchain technology ensures transparency, security and traceability which in turn eliminates possible human error and risk of fraud that could be present in the supply chain of gold.

Opinion and analysis:

Invest in this coin and hold onto it.

I highly praise this coin due to its backing by gold (which historically has always been seen as a safe haven to protect wealth).

I highly advise to invest in any stable coin backed by a fixed amount of precious metal.

To do so means investing in a “classic” asset without actually having to invest in a surplus of accessories to keep the asset safe.

Readers of my blog know I LOVE gold.

I speak from experience when stating that buying gold and precious metals is EASY but the actual hassle comes from safely securing, stockpiling and exchanging this asset.

Bullion markets (and governments) have established multiple laws which will limit your ability to buy big quantities of gold/silver/platinum (and other precious metals). Liquification (trading bars of gold for classic money) of these assets are also limited by the bullion market, local governments and dealers to evade fraud.

When buying gold there is also the case of taxation on the amount of metals bought and a fee to be paid for services provided by the dealership.

This implies, for example, if you are investing 100$ for gold you might actually buy 65$ worth of gold and pay 35% (or more) on fees and taxes.

By making use of the blockchain these fees and taxes become void.

You buy for a 100$ worth on DGX-coins you get 100$ worth of DGX coins.

And seeing 1 DGX = 1 gram of gold the equation becomes 100$ = 100$ worth of DGX = 100$ worth of gold.

In other words, you get what you paid for.

By use of blockchain is your wealth more highly secured and easier to manage.

The problem of liquification is also solved as there are no limits on how much DGX can be exchanged to classic money.

Transferability is even made more easy as cryptocurrency can be safely transferred internationally and exchanged to the currency used locally.

Gold on the other hand is much more strictly regulated when it concerns international transport (making it more costly and difficult to handle). There will also be the hassle and investment of time to look for local dealerships that will (and can) exchange gold to local currency.

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For the inquiring minds did I develop an extensive course on Cryptocurrency.
Find more about it here: The Ultimate Guide to Cryptocurrency.