Due to the pandemic, the demand for gold is steadily increasing. Due to the virus, some gold mining operations are currently closed down. Digital gold is experiencing a boom, the increasing demand and the lack of supply of gold leads to a rapid growth of the digital version of the precious metal. Tether has thus spread into the crypto world, the company has launched digital gold, thus meeting the great demand. The panic caused by the corona virus reached its peak in early March, triggering a massive sell-off of almost all assets, including Bitcoin and gold.

Many assets have experienced record falls, Bitcoin and other crypto currencies are also suffering from the corona crisis, but not as much as expected. Gold has also been largely unaffected. The precious metal has been used in trading for thousands of years and has always been used in times of crisis as a currency, as a store of assets and as a safe haven.

Similar to Bitcoin, there is only a limited supply of gold, which is why its value remains relatively stable and often rises even in a recession. Especially the limited supply has a dramatic effect on the price increase of the asset. The current problems, however, are that some gold mines are closed and the demand can no longer be met. Tether and Paxos have introduced digital tokens to fill the gap left by this supply shock and growing demand. The introduction is intended to represent the ownership of physical gold.

As it is difficult for investors to obtain physical gold at the moment, the two digital variants are not only the next best thing but generally better than physical gold.  The biggest advantage Bitcoin has over precious metal is that the BTC exists only digitally and can therefore be easily transferred from owner to owner or from wallet to wallet.