Ever since Bitcoin has started falling, many of the cryptocurrency investors are actually worried whether they should invest in cryptocurrencies or whether they should avoid it for the moment. Also, there are many different Altcoins as well. This is causing even more confusion as people are not able to decide whether cryptocurrencies are a good investment or not. Today, we will speak about Digixdao. We will go into the fact as to whether Digixdao should be invested in or not.
What exactly is DigixDAO?
With the help of Digixdao tokens, cryptocurrency investors will be able to invest in gold. When they are buying Digixdao tokens, they are actually buying gold of the same value. It is basically a gold standard. With the help of the cryptocurrency token, they are able to directly invest in gold.
Distributed Autonomous Organization is DAO. This is the reason why it is actually a unique proposition for most of the cryptocurrency investors. Moreover, since it has the gold standard, when you’re holding the cryptocurrency for a longer period of time, you can be sure that the performance will be similar to gold. As a result, if you’re looking to invest in tangible assets like gold, Digixdao is one of the best options for you. With the help of this, it will become easier for you to invest in gold.
Thus, if you’re looking to diversify your portfolio by investing in gold, this is one of the best options for you. That is why, whenever you’re thinking of investing in Digixdao, it is important to keep this factor in mind. If you only want to invest in cryptocurrency, Digixdao is not the perfect option for you.
You need to also keep in mind that when you’re investing in physical gold, you have to 1st think about the purity and thereafter you have to think about storing it. If you do not have proper storage space, there is always a risk involved. Similarly, when you’re investing in any other tangible asset as well, you have to protect it as well. On the other hand, when you’re investing in Digixdao, you do not have to worry about storing gold. You can invest in a significant proportion as well. You will not have to worry about the storage of gold or think about putting it away. It will be stored in Singapore. As a result, you will be able to invest in gold quite easily.
Thus, if you’re looking to invest in gold, it is a better idea to invest in Digixdao as it will ensure that you do not have to worry about storing the gold.
Crypto Watch: DigixDAO (DGD) Price Up 60% Despite Market Drop, Outperforms All Top 100 Cryptocoins
FORBES – DigixDAO jumps to $791M market cap despite general crypto market downtrend.
January 2018 has been a volatile month for cryptocurrencies worldwide, with major news developments including increased South Korean regulation, Facebook banning cryptocurrency advertising, India pushing toward a crackdown, and news of Tether and Bitfinex subpoenas.
This has served to temper some of the wild excitement and runaway speculation we saw at the end of last year. Jan. 31 and Feb. 1, in particular, held another hard drop for cryptocurrencies, with Bitcoin dropping below $8.5K.
Within that, one blockchain-based cryptocurrency network, DigixDAO has managed to actually grow more than 50 percent on a day when Bitcoin saw market reductions of -15 percent and Ethereum saw -20 percent reductions. At the time of this writing, DGD is the only cryptocurrency in the top 100 (by market cap) not in the red.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
What is DigixDAO?
Much has been made of Bitcoin functioning as a store of value akin to gold, but Digix literally tokenizes gold on the Ethereum blockchain. DigixDAO was the first crowdsale conducted via Ethereum and the first major Ethereum-based Distributed Autonomous Organization (DAO).
DGX vs. DGD
The Digix network has two related native assets: Digix Gold Tokens (DGX) and Digix DAO Tokens (DGD).
DGX tokens are positioned as the future gold-standard for Ethereum. Each DGX represents 1 gram of physical gold (99.99% LBMA) stored in a safe house. This asset-backed tokenization stabilizes the DGX price (short of some major drop or spike in the value of gold itself); the current jump in DGD does not have to do with DGX directly.
DigixDAO DGX Token
DGD tokens are the more speculative arm of Digix, allowing participants to claim quarterly rewards on the DGX collected through transaction fees. The number of DGD is fixed at 2,000,000, keeping the quantity scarce and finite. In theory, this means that movement in DGD reflects the general speculation around the value of gold—the higher the transaction volume and/or price of DGD, the greater the interest in securing gold-backed DGX.
DigixDAO DGD Token
Proof of Asset (PoA) Protocol
DGD is based on a Proof-of-Asset protocol, which marries real-world governance and blockchain technology. According to DigixDAO, this ensures (as the name implies) the asset-backed protocol, which can apply not only to gold but other financial assets. According to a 2016 blog post:
The PoA protocol can be used for land title deeds, ownership titles, stocks, bonds, debt credits, etc. Anything and everything can be securitized with our protocol.
According to CoinMarketCap, the DGD price was $240.74 at 5:09pm PST Feb. 1. At 11:44pm PST on the same day, that price had surged to $368.92, marking growth of 53 percent in just over six hours, with the 24-hour growth at over 60 percent. The current price at the time of this writing is $395.91. Tags: DigiDAO price prediction, DigiDAO review, What is DigiDAO?, DigiDAO mining