Cryptocurrency, Stablecoins-The last two weeks have been a tumultuous time for cryptocurrency investors and advocates, who have seen the market fall from $ 90 billion, or nearly half of its valuation since the start of the month. However, some optimism is growing in the space as the committed developers and future seekers for the technology.
Stablecoins, made popular by Tether's USDT currency, has been sold at cryptocurrency as a natural seller for investors and developers.
While Tether, which has minted $ 1.83 billion worth of USDT, the company has given way to competition over scandals related to its bank holding and dealing with exchange Bitfinex. With the possibility of a change in the interest of investors and project developers.
On Nov. 27th, Bloomberg published an article titled Where to Invest $ 1 Million Right Now. Amongst the surveyed experts, one of the most needed exposure to cryptocurrency in a time of otherwise say price movement.
Speaking with the publication, Darrin Woo-the director of Woo Hon Fai Group-explained his belief in the physicality of gold, and how digital assets such as crypto-based stablecoins provide new innovation for transacting in the precious metal,
"Because of my family background-my grandfather, I found Lee Cheong Gold Dealers in Hong Kong in 1950-I believe in the physicality of gold. I would buy a million dollars' worth of bullion bars and stuff them under my mattress. Gold has underperformed the S & P 500 index for the past five years … In the next 10 years gold is one of the best contrarian plays. I say buy when no one else does. "
Woo goes on to include the rise of digital tokens by entering the space of gold, highlighting a project that has recently invested in called G-Coin. As opposed to Tether, which is supposed to be backed 1: 1 with U.S. dollars-and therefore at the mercy of inflation / volatility associated with the currency-G-Coin is a stablecoin backed by the price of gold. While investors are exposed to some volatility in the form of the precious metal marketplaces, they also have the ability to benefit from the appreciation in the sector.
"If you talk to millennials, they are not interested in buying stocks and they do not have real estate brokerage. So they are looking for a store of value that's also convenient. They are interested in new technology and blockchain and using a digital wallet. "
Woo highlights the volatility of Bitcoin and most of the investors
"Unlike Bitcoin and Ether, whose prices are wildly, gold-backed tokens have an intrinsic value and should be a lot less volatile … G-Coin [is] in compliance with the Gold Council and Responsible Jewelery Council standards. The resulting gold can be tracked from mine to vault using blockchain. "
Portfolios and the general perception of the crypto industry, it is a little surprise that is becoming more attractive to the world. Until Bitcoin can test long-term viability and stability to holders, cryptocurrency might continue to give more market share to currencies.