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Fractionalized gold crypto combines the security and value stability
of gold with the accessibility and flexibility of blockchain technology.
Here are the main benefits:

1. Accessibility

• Low entry barrier:You can buy tiny fractions of gold (e.g., 0.0001 oz) instead of a full gold bar or coin, making gold investment accessible to everyone.
• 24/7 trading: Unlike traditional gold markets, which are limited by banking hours, crypto platforms allow round-the-clock trading.

2. Liquidity

• Easier to buy/sell: Fractionalized gold tokens can be traded on exchanges like other cryptocurrencies, often with better liquidity than physical gold.
• Global market: Access to international buyers and sellers increases market efficiency and price discovery.

3. Portability

• Digital ownership: You don’t need to store, transport, or insure physical gold. Ownership is recorded securely on the blockchain.
• Borderless: Easily transferable across borders without physical shipment or customs issues.

4. Transparency & Security

• Blockchain auditability:Every transaction is recorded on a public ledger, which reduces the risk of fraud.
• Backed assets: Reputable projects provide audits and proof that each token is backed 1:1 by physical gold stored in secure vaults.

5. Programmability

• Smart contracts: Can be used in DeFi (decentralized finance) for lending, collateralization, or yield generation, something traditional gold can't easily do.

6. Hedge against inflation with added utility

• Gold’s inflation hedge: Like physical gold, tokenized gold tends to hold value in times of economic uncertainty.
• Extra utility: You can use gold-backed tokens in broader crypto ecosystems while still enjoying the stability of gold.

Potential Risks to Be Aware Of:

• Counterparty risk: Depends on the provider to actually hold the gold.
• Regulatory uncertainty: Varies by country; some governments may restrict or regulate tokenized commodities.
• Platform risk:Risks of hacks or mismanagement by the issuing company or exchange.