Can PAX Gold continue to defy market trends?

Paxos Gold (PAXG), also known as PAX Gold, is a crypto asset on the Ethereum blockchain. Each PAXG token is backed by one fine troy ounce of gold stored in Brink’s vaults. So, if you own one PAXG token, you also own an ounce of physical gold held in custody by the Paxos Trust Company.

The appeal of PAXG is that it acts as a stablecoin, pegged 1:1 to gold, and as an investment in gold, backed by the security of cryptocurrency. Furthermore, being on the Ethereum blockchain means that it is accessible anywhere in the world, is compatible with ERC-20 wallets, and can be traded on any DEXs in Ethereum’s ecosystem.

With inflation rates high across the world and geopolitical tensions disrupting international finance markets, people have been turning to safe hedges backed by assets they trust, and for many, gold is still the primary ‘go-to’ hedge.

People can invest in precious metals in various ways. The most obvious is buying the physical asset – which can be awkward and risky. Alternatively, they can buy an ETF or obtain shares in a listed gold-related company on the stock exchange. However, PAX Gold now offers another way to gain direct exposure to the metal in a way that is easy and secure. 

As the PAXG token is linked directly to the price of gold, it has seen its value rise in defiance of a general market downtrend. Some cryptocurrencies, such as Bitcoin, have been described as digital gold and a hedge against economic downturns. However, the ongoing crypto winter has shown that some cryptos have fared better than others. It all depends on the use cases. This is why PAXG, being literal digital gold and a hedge, has benefited.

However, it is not the only digital token doing well. Despite the crypto winter, the prices of many leading cryptos have leveled off as a result of people needing somewhere to invest. As a result, some are ‘buying the dip’, while others are returning to the idea of cryptos being an alternate hedge.

Additionally, while gold remains a popular hedge, its dominance has been diminished by a growing number of alternative assets, such as art, whisky, luxury watches and, in one incredibly successful case, marijuana. 

The rise of alternative digital assets as hedges

Crypto alternatives that are backed by assets and act as hedges are growing more popular. NFTs are the most obvious examples, but there are several others. For example, people can buy cryptos backed by luxury watches and casks of whisky.

One token that has been attracting a lot of attention is BLUNT. This is the native token of the BudBlockz platform, an ecosystem that supports and benefits from the growth of the cannabis sector. 

BudBlockz is a decentralized e-commerce platform that facilitates the buying, selling, and trading of marijuana products. However, the platform is building long-term value by growing a community and providing numerous services. 

For example, the release of the 10,000 Ganja Guruz NFT collection will feature art based on the nostalgia of 90s games. This theme continues in BudBlockz Arcade, a P2E gaming platform where top players are rewarded with BLUNT tokens. 

BLUNT and NFT holders receive other perks, such as discounts in the store. In addition, they have governance and can vote and make proposals, having a voice in how the platform develops.

As an investment, the token is already proving popular. Its Private Sale sold out of BLUNT worth $0.015 a week early, and even though it is still in Presale, tokens have already risen to over $0.036. 

For investors who hold an NFT, there is the option of being able to obtain fractional ownership of cannabis businesses such as farms, dispensaries, and cafes. As this is done using blockchain, people can gain exposure to the cannabis sector no matter their location. 

What makes the BLUNT token and BudBlockz so valuable and exempt from market downturns is the link to the marijuana industry. The ecosystem supports and benefits from the growth of the sector. 

As increasing numbers of countries and jurisdictions decriminalize cannabis, the price of BLUNT will rise. The marijuana industry is already predicted to be worth over US$176.5 billion by the decade’s end. This means the token won’t just be a good hedge; it will rise for many years, regardless of the global economy.

So, while PAX Gold will likely continue its rise during this ongoing period of geopolitical uncertainty, it won’t be as steep an increase as in previous decades. Options like NFTs and cryptocurrencies backed by various assets are starting to dent the dominance of gold as the primary hedge. Some, like BudBlockz, have the additional advantage of being supported by an industry that is seeing massive growth and will continue to rise when things are more settled. 

Gold and cryptos like PAXG are still going to be popular. But they are now facing a growing number of challengers from eager newcomers like BudBlockz. To stay up to date with all things BudBlockz, join the telegram group and follow BudBlockz on Twitter.

BudBlockz token is available to purchase from the official webpage, https://budblockz.io