$PAXG = Gold token = crypto

China has reportedly developed synthetic gold. Many different opinions are coming about its impact on the price of gold. Some of my friends told me, “Just watch. Within two years, gold is going to crash hard.”
Since I have read a bit about economics, I cannot completely reject that statement.

My wife uses imitation jewellery. Actually, she loves it more than real gold. She keeps buying gold plated jewellery and loves to wear it to functions. The interesting thing is, it’s not that she doesn’t love real gold. At regular intervals, she also demands real gold jewellery.

So where is that gold?

Obviously, in a locker. They don’t want to lose the asset. They are very sure that real gold is their investment. To protect the real gold, they are ready to use imitation jewellery. At parties, no one doubts whether the plated gold is real or not. Meanwhile, the real gold remains safe and secure.

Has this affected the gold rate? I guess no. It has only increased the need for security. In fact, we even have to spend extra money to keep it safe, like paying for a bank locker.

Now let’s come to digital tokens. I really appreciate the idea behind such adoption. But again, if there is no proper control over crypto institutions, physical holdings could be misused. If I am buying a gold token, how much security is actually given to my asset?

Banking itself is built on trust. Let it grow.
#Mahanadi

Now, what do you think about the gold price? 😉$PAXG

pic credit : beloved binance square community 🪙