I was asked: What makes blockchain-based gold tokens track the price of real gold?
My answer: 1 troy ounce is about 31.1 grams, and international gold prices are generally quoted per troy ounce. The difference between holding gold tokens and physical gold is that tokens can be transferred around the clock and held in tiny fractions, but they also involve an additional layer of trust in the issuer.
$PAXG 4161.77 (-0.76%)
If that makes sense, comment “1.” If not, ask away in the comments.
#PAXG
My answer: 1 troy ounce is about 31.1 grams, and international gold prices are generally quoted per troy ounce. The difference between holding gold tokens and physical gold is that tokens can be transferred around the clock and held in tiny fractions, but they also involve an additional layer of trust in the issuer.
$PAXG 4161.77 (-0.76%)
If that makes sense, comment “1.” If not, ask away in the comments.
#PAXG