Bullish on bullion? This crypto project has a golden proposition

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Gold and cryptocurrencies are often seen as oil and water by investors, but a new project allows consumers to gain exposure to both asset classes at the same time.

AABBG is a fully gold backed token, which ensures that the value of assets is linked to the current spot price of the precious metal.

This is coupled with a crypto wallet which allows these digital assets to be stored securely, giving users the freedom to effortlessly make transfers to friends, family and businesses.

The project, developed with Core State Holdings, Corp (CSHC), says anonymity is a top priority and therefore transactions are invisible to third parties. Passwords and PIN code protection are also used for added security.

In addition, AABBG claims that its infrastructure allows cryptocurrency to be sent via email, SMS, Facebook Messenger, and WhatsApp. This could be crucial, as digital assets attempt to secure mainstream adoption by providing a user experience that everyday consumers will be familiar with.

Use cases

According to those behind AABBG, gold has long been viewed as an important investment, especially during times of economic instability. The same can apply when cryptocurrencies are subject to bouts of volatility.

There are other factors that could also make gold backed cryptocurrencies attractive. Countries around the world are currently grappling with high levels of inflation, in part due to rampant money printing that began in response to the coronavirus pandemic.

Gold has cemented its reputation as an inflation hedge, ensuring that a person’s capital value is not diminished, unlike bank accounts, where purchasing power is gradually eroded due to low interest rates. ‘interest.

AABBG is the brainchild of Asia Broadband, Inc (OTC: AABB). The resource company is primarily focused on the production, supply and sale of precious and base metals and currently operates primarily in Asian markets.

Some analysts are currently extremely bullish on gold. A number of US investment banks have expressed confidence that we could see prices reach $ 2,300 to $ 2,400 per troy ounce, a marked improvement over the price of $ 1,823 at the time of writing. article. AABBG aims to provide the portability, security and transparency of a regular crypto token while eliminating volatility.

Gold for crypto

There are passionate voices on both sides of the gold versus crypto debate. Some argue that precious metals have performed rather poorly in recent months compared to digital assets such as Bitcoin and Ether. But the gold bugs often retaliate by pointing out that it has cemented its reputation over hundreds of years, when cryptocurrencies have barely been around for a decade.

A number of experts also point out that investors should only allocate a small percentage of their overall portfolio to crypto, barely 5% in some cases. This means that they should still be able to benefit from a price increase, while minimizing the impact on their position in the event of a price decrease.

The introduction of tokens such as AABBG could create a ‘have your cake and eat it’ approach, meaning that investors can devote a greater proportion of their holdings to assets that serve as inflation hedges, without falling behind. worry about volatility.

In January, Asia Broadband sold its main mining operation in order to bank a large amount of gold bars, raising $ 82 million. This is used to ensure that the AABBG token is 100% backed.

Looking ahead to the next 12 months, Asia Broadband plans to open a satellite office in El Salvador, securing its presence in the country now that it establishes Bitcoin as legal tender, elevating it to the same status as the US dollar. As the worlds of fiat and crypto draw closer, the divide between crypto and commodities is also narrowing.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While our goal is to provide you with all the important information we may obtain, readers should do their own research before taking any business related action and take full responsibility for their decisions, and this article cannot no longer be considered as investment advice.

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