Digital Gold Investment: From Pawnshops to Blockchain

Bittime - With technological advancements, gold is no longer limited to physical possession. It can be owned digitally, even recorded on a blockchain network. This phenomenon has given rise to a new term in the modern financial world: investment digital gold.

This change brings a new way for people to invest. There's no need to queue at gold shops, pay storage fees, or worry about losing your gold.

With just a mobile phone and an internet connection, you can buy and own digital gold in seconds. In Indonesia, this concept has been gaining popularity since 2019, with the emergence of various platforms.which provides digital gold services.

What is Digital Gold?

digital goldis a form of gold investment owned and traded through an online platform. This means you can buy and sell gold without having to physically store it.

Even though it's not in tangible metal form, every gram of digital gold you own is still guaranteed by physical gold reserves held by a trusted institution.

Read also: UBS Bank Trials Gold Tokenization Using Ethereum Layer 2 ZKsync

Advantages of Digital Gold over Physical Gold

Digital gold offers a number of advantages that make it increasingly popular:

1. Can be purchased with a small nominal value
   You can start investing from as little as IDR 10,000, or the equivalent of 0.01 gram of gold. This makes gold investing more inclusive and affordable for everyone.

2. Easy and fast transactions
   No need to go to a store. With Bittime apps, you can buy gold anytime, anywhere in just seconds.

3. Lower spreads
   The spread between the buying and selling prices of digital gold is generally smaller than that of physical gold, meaning your potential profits can be greater.

4. Real-time prices
   Digital gold prices are updated live, allowing you to monitor price movements and make decisions quickly.

5. No storage risk
   No need to worry about losing gold due to theft or damage because everything is stored digitally and securely.

6. Can be withdrawn in physical form
   If you have at least 1 gram of digital gold, you can still exchange it for real gold bars at any time.

Gold Tokenization: A New Step in the Investment World

Apart from through applications, now a new innovation has emerged called gold tokenization. This concept converts physical gold ownership into digital tokens using blockchain technology. 

This means that each token you own represents ownership of real gold stored in a vault.

Gold tokenization offers many benefits, such as ease of access, transparency, and high liquidity. Gold in token form can also be traded globally without geographical boundaries and can even be used in digital financial systems orDeFi.

The process involves several stages, starting from purchasing physical gold, storing it in a secure vault, minting tokens on the blockchain, and periodic audits by third parties to ensure the recorded gold value matches the number of tokens in circulation.

Read also: Antam Gold Price Today: Comparison with UBS and EOA Gold

The Development of Gold Tokenization in Indonesia

In Indonesia, the Financial Services Authority (OJK) together with PT Pegadaian is preparing a gold tokenization business model. Trials of this system are in the final stages, with promising results.

To date, gold tokenization transactions in Indonesia have reached around 3,750 grams of goldwith a value of more thanRp. 8 billion.

The market potential is also very large. Based on OJK data, there are approximately18.5 million Indonesianswho already own digital gold, a figure that is much higher than shareholders in Indonesia.

In fact, by 2030, demand for gold tokenized assets is estimated to reachRp1,390 trillion.

However, the OJK continues to emphasize the importance of digital financial literacy so that the public understands the risks and benefits before investing. Despite its significant prospects, gold tokenization is currently still in its development stage.

So, for now, invest through official institutions such as Pegadaian or Bappebti-licensed platforms.

Read also: Bitcoin and Gold Will Be the Prima Donnas in the Investment World in 2024!

Start Investing in Digital Gold at Bittime

Interested in investing in digital gold? You can start at Bittime! You can choose from two assets to begin your investment journey: Tether Gold (PAXG) and Tether Gold (XAUT).

At Bittime, you can invest in digital gold starting from just 10,000 rupiah. Bittime is also committed to providing easy, fast, and secure services, making it easier for everyone to access the world of crypto assets!

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

FAQ

What is meant by digital gold?

digital gold is a gold investment that is traded and stored online electronics through an officially licensed platform, without requiring a physical form. Investors still buy pure gold, but there is no need to store or physically hold it.

What are the disadvantages of digital gold?

The main disadvantages are:

1. Administrative costs: Some platforms charge transaction or storage fees.
2. No Physical Form: Investors cannot hold or use gold directly.

Can digital gold be resold?

Yeah, digital gold can be resold. You can sell it through a digital gold service provider app, and the proceeds will be transferred directly to your bank account.

Where to buy digital gold?

You can buy digital gold through:

1. BUMN applications such asDigital Pawnshop.
2. Platform e-commerce like Shopee Gold Savings and Tokopedia Gold Savings.
3. Service features such as GoInvesta in the Gojek application.

Is it safe to buy digital gold?

Yes, buy digital gold safe as long as you choose a provider that is trusted and registered/supervised by an institution such as OJK or BAPPEBTI. Secure providers have multi-layered security systems (such as encryption and one-time access) and guarantee that your physical gold is stored in a secure depository.