A few days ago, the Bitfinex exchange announced the new Tether Gold (XAUT), a stablecoin pegged to gold, and immediately noted significant trading volumes: only yesterday, in fact, $2 million were traded in Tether Gold.
Strangely enough, the price of XAUT is significantly higher than physical gold: the price of the Bitfinex token is $1600, while physical gold is currently at $1575.
It is not well known why there is such a difference, although it is possible to make hypotheses: for example, one might be anonymity, since XAUT can be purchased without KYC (KYC is required only at the time of withdrawal).
Moreover, Tether Gold can be used as currency, a bit like Tether dollar.
However, the dollar is American and at any time America can block the underlying: if the US wanted to block the Bitfinex Tether dollar, it would be very easy. It would be enough for them to block the bank accounts of Bitfinex, where the dollars are deposited: in fact, all the banks in the world have to go through an American correspondent for dollars.
And that’s why investors who don’t want to risk losing their money perhaps prefer to invest in Tether Gold because it is not under the direct control of America.
But there is also a second reason why Tether Gold has become successful in a short time: many people, in fact, complain about the volatility of cryptocurrencies, whereas gold has all the characteristics of a safe haven asset and that is why in the last 13 months it has strengthened by 30% against the dollar. Suffice it to say that only at the beginning of 2000 gold was worth $250, while now it is around $1500.
The strength of Tether Gold is based on these 3 points. Furthermore, 2 days ago, Bitfinex also announced the futures for Tether Gold, providing more liquidity to the tool. Undoubtedly, once options are available, the tool will become even more liquid.
The presentation of this new product will take place on February 6th at 9:00 PM (GMT+1) live online with the CTO Paolo Ardoino exclusively for Terra Bitcoin members. The event will last 1 hour after which everyone will be able to ask their questions.
“Tether Gold will replace Tether dollar” is the title of the event.
Rhe organizers of the event, which include Paolo Barrai, explain:
“Terrabitcoin is a virtual place that gives people the chance to meet in a borderless territory. A place to discuss, watch videos, talk about projects, microeconomics and the social, economic and political aspects of life”.