Why Gold?
Gold as a Foundational RWA
The Growing Opportunity for Tokenised Gold
The market for tokenised gold is poised for significant growth, providing a major opportunity for TVVIN as a leading digital asset provider. The tokenised gold market surpassed $1 billion in April 2023, and the market price of LBMA gold bullion, a market that is accessible to TVVIN, is nearing an all-time high. Market reports project the tokenised assets market will reach $1.5 trillion by 2025, with a compound annual growth rate (CAGR) of 230%.
Increased Demand for Gold as a Secure Asset
The COVID-19 pandemic and other recent events leading to the devaluation of fiat monies have heightened the demand for gold as a secure asset, leading to increased interest in gold-backed ETFs and other forms of digital gold investment. Total holdings of gold-backed ETFs reached an all-time high in 2020, reflecting investor efforts to diversify portfolios and safeguard against market volatility.
TVVIN's Opportunity to Capitalise on Tokenised Gold
These trends present a significant opportunity for TVVIN to cater to the growing global demand for tokenised gold. Backed by LBMA-certified gold - where each token is denominated to one gramme of gold, allowing for widespread accessibility - and leveraging blockchain technology, TVVIN's $VVG token offers the combined advantages of traditional gold and the transparency, security, speed, and liquidity enabled by the blockchain.
Seizing the Market Opportunity
With its innovative platform, low-barriers to entry, trusted vaulting partner, and commitment to flexible revenue generation, TVVIN is well-positioned to capture a significant share of the rapidly expanding tokenised gold market. By delivering value to its token holders and leveraging the expected growth in demand, TVVIN aims to establish itself as a leading player in this space for years to come.
The Limitation of Fiat as a Secure Store of Value
Traditional fiat currencies have proven to be unreliable stores-of-value. Over the years, the US dollar has lost approximately 96%-98%1,2,5 of its purchasing power in relation to gold, while the euro has experienced a decline of over 85%6 against gold. These depreciations highlight the inherent limitations of fiat currencies in maintaining long-term value.
Cryptocurrencies and the Challenge of Unit of Account
Cryptocurrencies like Bitcoin and Ethereum have emerged as viable alternatives, offering better stores of value compared to fiat currencies. However, their extreme price volatility makes them unsuitable as units of account, and most goods and services remain priced in fiat money.
The Constraints of Precious Metals as Media of Exchange
While precious metals, especially gold, have historically served as reliable stores-of-value and units of account, they fall short as mediums of exchange. Physical bullions and coins are cumbersome and lack divisibility for everyday transactions. Moreover, in an increasingly digital world, electronic transactions dominate, limiting the direct use of physical metals.
TVVIN: Bridging the Gap between Fiat and Crypto
TVVIN’s liberating solutions provide an opportunity for goods and services to be priced in grammes of precious metals instead of relying solely on fiat units. By tokenising real-world assets, such as gold, TVVIN provides a secure and transparent medium of exchange that can be seamlessly utilised as a medium of exchange, be used as a store-of-value and act as a unit of account.
TVVIN Gold vs Physical Gold, Cryptocurrencies & Fiat
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