We've been looking at the correlations between early coins and cryptocurrency in the Coinage to Crypto Series. While most of the focus has been on linking the ideas behind early currency to digital currency, this article focuses on the concept of moving digital currency back into the original gold and silver standards.
Cryptocurrencies like Bitcoin and Ethereum are rapidly achieving recognition as standard components of financial markets. However, they remain more volatile than fiat currencies and other, more conventional assets. This leaves players in the cryptocurrency market space with a few key options for protecting their assets:
- Conversion - Buyers (or miners) convert cryptocurrency to other, less volatile assets with similar liquidity. This stabilizes the holdings of the owner and, in the case of gold, increases liquidity.
- Active Trading - Buyers try to play market volatility to maximize assets, requiring constant investments of time and effort.
- Holding - Buyers hold their crypto assets and wait for opportune times to sell and/ or convert.
Those who choose to convert into precious metals (the most stable option above) are among the group of currency aficionados who seek to hedge some, or all of their attained value in commodities that are proven to retain worth. We at Austin Lloyd are particularly interested in allowing rapid conversion of digital assets to precious metals. "Coins have shown through the years to consistently appreciate in value, and we see this as an opportunity to shield against market volatility."
In this model for maximizing value retention, gold and silver coins may be acquired through the direct conversion of cryptocurrency, which is accepted as payment. To many, this will simply be another item of value for which they are happy to pay with their digital currency. For those who seek long-term stability and diversification of assets, this is a great leap towards optimizing assets and attaining goals.
Stay tuned to Austin Lloyd's blog and news releases to learn more about forthcoming options for the conversion of digital assets into gold and silver coins. We look forward to bringing our clients the finest options in numismatics, bullion and increased portfolio stability. It is our aim to bring traditional and new markets together for your benefit.
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