Gold trading volumes are shooting up on cryptocurrency markets
The price of gold has set a new all-time high of 1,954 USD an ounce whilst trading volumes of gold-backed tokens are rocketing as well.
In the past month, the volumes of Infinigold, a blockchain-based token issued by commodities digitization company, have quadrupled. According to CEO Jon Deane, the average weekly volume today is 370 % higher than on July 1st.
Other tokens seem to be performing equally as well. Paxos Gold, Digix Gold Token, and Tether’s gold token all have witnessed a big increase in volume in the same time period.
Digital investment platform Uphold CEO JP Thieriot implied that such great demand for gold most likely has been caused by an upswing in unconventional monetary policy.
"The financial markets have been carpet-bombed with trillions of dollars of cash, and while this has kept the equity markets, if not the general economy from completely imploding", Thieriot claimed. "
It is not without its (very predictable) consequences"'; "Gold has just nudged its slumbering little brother, Bitcoin, awake—as it's now their time to go out and dance and frolic across the landscape".
While the price of the US dollar has been declining, both the prices of gold and Bitcoin have been rising in the meantime, with gold going up 11% in July, and Bitcoin climbing up 20%.
In a recent debate, Bitcoin bull Anthony Pompliano and Gold bug Peter Schiff claimed that their chosen asset was the reason for the growing global financial uncertainty. However, one thing they both agreed upon was that the days of the US dollar are potentially doomed.
So, will it be Bitcoin or gold to take up the vacancy, that is the question?