Tether Gold (XAUT) Witnesses Surge in Demand Amid Grim Economic Outlook
The global economic uncertainties induced by the COVID-19 pandemic has increased the demand for time-tested stores of value, including precious metals such as gold, and silver, among others. At the same time, this demand has cascaded into the cryptocurrency industry, however, not in the way as one might think.
Demand for Tether Gold Surges
While bitcoin (BTC), and ether (ETH) seem to be gaining upward traction in terms of price, another cryptocurrency is witnessing a significant increase in demand.
The price of Tether Gold (XAUT), a digital asset providing exposure to one troy ounce of gold held in a Swiss vault controlled by the company is rallying in tandem with that of physical gold on the back of a grim global economic outlook.
Since XAUT’s launch earlier this year on January 23, the price of gold has increased by 22.7% from $1,550 to $1,944 at press time.
Interestingly, the dramatic appreciation in the price of gold comes shortly after the U.S. government announced a second stimulus bill to tackle the economic devastation caused by the ongoing pandemic.
The rising demand for XAUT is a testimony to the level of confidence the precious metal enjoys as a safe-haven asset as fiat currencies around the world continue to diminish in value.
Paolo Ardoino, CTO, Tether, said,
“The creators of Tether felt individuals would also appreciate a blockchain-based token that provides exposure to gold without annual fees.”
“While no one could of course have anticipated the severe challenges that we’ve all had to adapt to in 2020, it is clear that in times of uncertainty people like having accessibility to gold. Tether Gold is clearly a product that resonates in these times.”
Digital Currencies Getting Increasingly Popular to Circumvent Economic Turmoil
The ascend in the demand for Tether Gold should hardly come as a surprise as it offers the benefits of both, the battle-hardened value of gold along with the robustness of digital currencies.
XAUT does away with the inconveniences associated with owning physical gold such as the storage cost and lack of mobility by providing its owners with a digital version of gold.
As reported by BTCManager earlier, countries such as Argentina and Lebanon are seeing their fiat currencies crumble amid rampant hyperinflation and international sanctions that have swayed the local populace toward gold and emerging asset classes such as bitcoin (BTC).