This Crypto Allows You To Invest in Gold

As of October 31, popular cryptocurrencies such as Bitcoin (CRYPTO: BTCUSD) and Ethereum (CRYPTO: ETH) have experienced significant price drops throughout the month, which could spook investors more than Halloween itself. However, there's one crypto that has been on a tear for the month, reaching all-time highs nearly every day. It's a stablecoin, but vastly different from the common ones.Image source: Getty Images.PAX Gold (CRYPTO: PAXG), one of the few stablecoins backed by gold, reached an all-time high of $4,765 on October 16. This is vastly different from common stablecoins, such as Tether (CRYPTO: USDT) and USD Coin (CRYPTO: USDC), which are pegged to the U.S. dollar and primarily maintain a price of $1. The PAXG token was built to be worth the same amount as a London bar of gold, so it will maintain a value that's close to the price of one troy ounce of the metal. However, the crypto and the commodity will never be the same price, as the digital token is subject to transaction and network fees, as well as unique fluctuations in price and demand, which can alter the price.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool