Is token the new bitcoin
Gold is the new bitcoin or what?
It's strange. Less than two years ago it was said so often that Bitcoin was "the new gold". And Bitpanda co-founder Eric Demuth wrote a few months ago in a guest comment for the brutkasten that Bitcoin does "more than gold". And now that: Since today you can trade the precious metal (and also silver) on the crypto platform of the Viennese start-up. The question arises, of course, why. Isn't the crypto business so lucrative anymore? So, sardonically, is gold the new bitcoin?
+++ Bitpanda wants to become a payment institution with a new PSD2 license +++
Big hit for normal consumers?
Bitpanda of course anticipated this line of argument. The crypto business is still doing well. With the specific mode of gold trading on the platform, however, a completely new model of digitization of the versatile precious metal is offered. Because for the first time you can now also trade mini quantities of gold at any time and thus benefit from this asset as a normal consumer. You don't get it physically (but that should still be possible). Instead, the gold is in the high-security warehouse in Switzerland. Bitpanda also wants to score points with comparatively low buying and selling fees.
Largest gold dealer in Austria?
The aim is to become Austria's largest gold dealer next or even this year, says Eric Demuth with the usual confidence of victory. But where does this confidence come from? It is at least questionable whether gold is also an exciting asset for regular Bitpanda customers. A price fluctuation range of around 20 percent in the past three years (today the gold price is 1.3 percent above the starting point) should not be particularly attractive for real-time trading crypto traders who are used to extreme volatility. Whether you can convince customers to use the long-term investment model has to be proven. But that's where you're unbeatable, says Demuth: “Nobody in Europe has anything like it. Neither with the trading fees nor with the storage and insurance with fees of 0.0125 percent per week there is a better offer. "
Stablecoin it is
It should be noted at this point: No, gold is certainly not the new Bitcoin. And turning crypto traders into gold traders doesn't work that way either. Bitpanda's opportunity - and probably the motivation for the new product - lies completely elsewhere. And in an area in which some have already tried: To create a reliable stablecoin (i.e. a token with a relatively stable value that is independent of the daily crypto fluctuations), which is accepted accordingly in the crypto world and is liquid. Eric Demuth has already announced this plan. The physical gold will soon be represented by a simple ERC20 token.
Old idea ...
As I said, the idea is not new. But the probably best-known stablecoin Tether (which, by the way, can also be traded at Bitpanda) has been suffering from a credibility problem for some time (there is strong doubt that it is actually deposited with corresponding US dollar reserves). The same applies to other stablecoins linked to the dollar. And platforms that wanted to tie a coin to gold, other precious metals, diamonds or the like have so far not made it all the way to the top.
... new opportunity for Bitpanda
With its already very large, well-known platform, which has a well-developed trust bonus, Bitpanda could successfully introduce its digital precious metals and other planned digital assets into the crypto market. Because the opportunity to take refuge in gold when the crypto rate is falling and to switch back to Bitcoin and Co. when the rate is rising is definitely attractive for traders - if they trust the appropriate provider. And that is probably the case at Bitpanda (currently). And the fees - even if they are low in comparison to the gold trade - should result in good sales for the platform.
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