PAX Gold (PAXG) is a gold-backed, ERC-20 based crypto asset issued by Paxos company. Being ERC-20 based means that PAX Gold can be integrated into any service, exchange and wallet that adapts the Ethereum protocol. Each PAX Gold token is backed by one ounce of 400 ounce London Good Delivery gold bars stored in Brink’s vaults. Information about What is PAX Gold (PAXG) and how does the PAXG system work is in rest of the article.
What is PAX Gold (PAXG) and how does the PAXG system work?
Traders can use PAX Gold tokens with Paxos and get the corresponding value of their tokens in US dollars. If the processor has more than 430 PAX Gold tokens, it will also have the alternative to use them in exchange for gold bars. The Paxos company explains that the reason for releasing PAX Gold is that physical gold is difficult to trade, transport, divide into quantities. Information about Ethereum, you can browse here.
The company states that the main purpose of the PAX Gold project is to bring physical gold investments to today using Ethereum. The release of PAX Gold is also thought to increase the gold – crypto liquidity. It is also expected that this effect will allow the development of various financial products through the PAXG token.
What are the advantages of PAX Gold (PAXG)?
The main purpose of use of PAX Gold is to eliminate the necessity of the traders to physically preserve physical gold, and to allow the purchase and storage of digital gold tokens. PAXG can be converted into money, it is also possible to use gold against other virtual assets and send PAX Gold tokens to all over the world. Paxos has a competitive fee structure for creating and redeeming PAX Gold tokens in its wallet. In this way, it is possible to make transactions with extremely low commission rates.
How is PAX Gold mining done?
Unlike other cryptocurrencies, PAX Gold (PAXG) is not mined or produced. All the PAX Gold values in circulation are released to the market in a way that corresponds to the amount of gold in the company’s vault.
For information about crypto currency: https://en.wikipedia.org/wiki/Cryptocurrency