Bullish on gold? This Cryptocurrency Project is Backed by Gold

Gold and cryptocurrencies are often viewed by investors as oil and water, but a new project enables consumers to gain exposure to both asset classes.

AABBG is a token fully backed by gold, which ensures that the value of the asset is pegged to the current spot price of the precious metal.

Coupled with a cryptocurrency wallet, these digital assets can be safely stored, allowing users to transfer money to friends, family and businesses effortlessly.

The project, which was developed with Core State Holdings, Corp (CSHC), says anonymity is a top priority -- so transactions are invisible to third parties. For added security, password and PIN code protection is also used.

Additionally, AABBG said its infrastructure allows for sending cryptocurrencies via email, text message, Facebook Messenger, and WhatsApp. This could be crucial as digital assets attempt to secure mainstream adoption by offering a user experience familiar to everyday consumers.

Use Cases

According to the people behind AABBG, gold has long been considered a strong investment -- especially in times of economic uncertainty. The same can apply when cryptocurrencies experience volatility.

There are other factors that may also make gold-backed cryptocurrencies attractive. Countries around the world are currently grappling with high levels of inflation, in part due to the rampant money printing that began in response to the coronavirus pandemic.

Gold has cemented its reputation as a hedge against inflation, ensuring that one's capital does not lose value - in stark contrast to bank accounts, where spending power is gradually eroded by low interest rates.

AABBG is the brainchild of Asia Broadband, Inc (OTC: AABB). The resources company is primarily focused on the production, supply and sale of precious and base metals – currently, it operates primarily in Asian markets.

Some analysts are extremely bullish on gold right now. Some U.S. investment banks say we're confident we'll see prices reach $2,300 to $2,400 an ounce, a marked improvement from $1,823 at the time of writing. AABBG aims to provide the transferability, security and transparency of common crypto tokens while eliminating volatility.

Gold and cryptocurrencies

In the gold vs. cryptocurrency debate, there are fierce voices on both sides. Some have argued that the precious metal's performance in recent months has been rather lackluster compared with digital assets such as bitcoin and ethereum. But gold investors tend to fight back — pointing out that gold has cemented its reputation over hundreds of years, while cryptocurrencies have only been around for 10 years, they point out.

Some experts also stress that investors should only allocate a small portion of their overall portfolio to cryptocurrencies — in some cases as little as 5%. This means that they should still be able to experience a benefit if the price goes up, while at the same time, their positions should be minimally affected if the price goes down.

The introduction of tokens like AABBG means investors can use a larger percentage of their holdings to hedge against inflation without worrying about volatility.

In January, Asia Broadband sold its main mining operation to gain access to large amounts of gold, raising $82 million in the process. This is used to ensure that AABBG tokens are 100% backed.

Looking ahead to the next 12 months, Asia Broadband is planning to open a satellite office in El Salvador - securing its presence in the country as it establishes bitcoin as legal tender, elevating it to the same status as the U.S. dollar. As the worlds of fiat currencies and cryptocurrencies draw closer together, the gap between cryptocurrencies and commodities is now narrowing as well.