OctaFX is one broker that has taken an idle side to the blockchain vs gold debate. Why argue when you can create a pact that will benefit the clients and the broker itself? Thus the broker has allowed both gold trading and crypto trading on its excellent trading software.
One cannot deny that there is a certain competition between blockchain users and traders of gold, with both having strong arguments in support of their favorite products. For instance, gold maximalists cling to the historical context in which the commodity has played an imperative role, while blockchain advocates focus on the modern side, the post-history era where technological progress is the new status quo.
Gold has stood the test of time as a safe haven asset, and it will always make a difference in the market whether one focuses on it, or simply dismisses it. Even in an idle state, gold has the potential to shift markets. Patience and resilience have always been two defining sides to the conservative investors to whom gold has always had a certain sentimental appeal.
Meanwhile, the blockchain industry has had an unprecedented boom over the last couple of years, and one is not to be blamed when comparing this boom to that of the gold rush almost a hundred years ago. The sheer potential of endless tech possibilities makes this a long lasting industry with great repercussions. A good example is the current spurt in NFT interest.
Considering that blockchain ecosystems have the potential for unlimited growth, gold on the other hand cannot match this because it is inherently a physical commodity. Fluctuations in gold prices are rarer, for better of for worse.
Moreover, the popular pair XAUUSD (gold and U.S. dollar) is a client favorite to those that know their way around gold and its pricing. But clients should consider that market fluctuation go both ways. The inherent nature of gold as a store of value, although resilient, can swallow fiat currencies trust; when gold goes down it can bring the paired fiat down as well, and vise versa.
But here’s the thing. Are these essentially different products really that apart when it comes down to their accessibility? Why not trade both gold and crypto on a foreign exchange.
Here is where global broker OctoFX comes into play, a huge broker with limitless possibilities, one of them being to be able to stay close to gold and crypto assets as trading products. OctoFX clients can trade with a number of popular crypto assets, but they can also stick with gold; or even both!
A compromise has been reached, where blockchain has been used to make gold accessible to crypto traders, while also working the other way- granting traditionally investors a great entry point into the world of blockchain.
A great example of a company bridging the gap is Paxos Gold. This company issues stablecoins on PAXGX – on the Ethereum blockchain. One token of this stablecoin can be redeemed for an ounce of gold, and the client can even earn an interest on his or her so-called “blockchain gold”.
In today’s FX world, it would be considered lighthearted or even ill-advised to settle on one of these two major assets types. They both have pros and cons, and yet both are portfolio diversification incarnate. Settling on one of these, may hold you back on the other, not to mention that it encourages the user to stay in his box without considering the endless opportunities out of it.
Gold is essentially a value storage, and as inflation goes up so does gold; it’s the way it has always been. Yet, with cryptocurrencies significant profits can be made in the turn of a coin, occasionally multiplying investments that can be moved to other asset types. Moreover, crypto coins can be bought once their value has fallen.
It’s imperative to stay sharp for these markets, and to remain flexible as well as open minded. Follow the trends, be mindful of unexpected fluctuations, take into consideration your cost-to-benefit ratio.
Meanwhile, OctaFX recently introduces weekend crypto trading, which is a rising option for traders that more and more brokers are onboarding. And yes, this is the same OctaFX that has over 7.5 million active trade and 45+ awards. The same broker that is renowned for it analytic tools, educational program, financial expertise, and financial literacy, not to mention superb trading conditions.
