OneGold, an online marketplace for buying, selling and redeeming precious metals, announced a partnership with BitPay on January 13, which will allow crypto users to purchase gold and other valuable metals on Android and iOS devices.
It has been reported that through the integration with BitPay, a leading Bitcoin payment service provider, which currently supports over 30,000 merchants, including Microsoft and Avnet, OneGold’s new mobile app will accept payments in Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and various stablecoins.
Kenneth Lewis, the CEO of OneGold, said that the partnership will make wealth preservation available to everyone at the lowest cost of ownership available on the market.
“Cryptocurrency holders are a natural fit as precious metals investors and can utilize OneGold to balance their investment portfolio. Using BitPay, cryptocurrency holders can quickly buy gold or silver at institutional pricing, save 2%, and create a nice balanced mix of gold, silver, and cryptocurrencies.”
It has been analyzed that Bitcoin has often been compared to gold, which is equivalent to digital gold, as there is a correlation between the two that extends deeper than both being a safe haven, limited assets.
However, Mike McGlone, the market analyst of Bloomberg, characterizes 2020 as a prime year for safe-haven assets, suggesting that movements in gold will act as a proxy for BTC’s price performance.
McGlone highlights the recent price increase in Bitcoin’s value following the U.S.-sanctioned killing of Iranian General Qassem Soleimani. Shortly after this event, both the price of Bitcoin and gold went up.
Likewise, McGlone noted:
“The precious metal reached a seven-year high of $1,600, while its digital protege followed, netting a 20% rise.”
It has also been analyzed that Paxos, the stablecoin operator, has created a crypto-asset redeemable for physical gold. Paxos launched PAX Gold (PAXG), a gold-backed ERC-20 token in September 2019, claiming that the product is the first crypto-asset redeemable for physical gold.
According to a report, each PAXG token will be back by one fine troy ounce of London Good Delivery gold. Token holders reportedly own the gold it represents, but the tokens can be moved like any other ERC-20 assets, which Paxos notes are simpler than shipping gold.
Thus, the company provides millions of global clients with the option to digitally hold precious metals.