/ Ethereum

Why DigixDAO (DGD) is such an undervalued investment

DigixDAO aims to bring gold to the cryptocurrency sphere. It has been in the works for a long time and is close to reaching its big release, 2.0. You should be buying DGD right now before the release and here's why.

First of all, let's clarify something here that some people may find confusing. When people see the token DigixDAO (DGD), they think, why would I invest in that? It's tied to gold right? So it's too stable for me to make big gains! That's wrong. DGD is actually the token for the decentralised governance of the Digix system. This means that DGD is actually priced based on market value and can go up or down in value significantly just like any other cryptocurrency.

Digix (DGX) is the upcoming token that will be tied to gold. 1 DGX will be equal to exactly 1 gram of gold. You can exchange your DGX for actual gold at any time upon release and Digix only sells as much gold as they have in Singapore in [Singapore Safe House](Singapore Safe House). This means that DGX will be tied to the price of gold, thus you can trade and hold gold digitally while being able to reclaim physical gold at any time.

As a reward for the governance and helping the efforts of the Digix project, DGD token holders will be rewarded in the form of dividends from the 0.13% transaction fee on DGX transactions. This is very important. Talk to any rich investor about what to invest in and many of them will tell you that dividends yielding assets are crucial to any portfolio. They give the asset real core value. You earn dividends for holding the asset and on top of that your asset appreciates in value, generating a compounding effect on your portfolio in terms of value.

All of this should make DigixDAO (DGD) sound like a very solid investment. There are a lot of people, particularly in the cryptocurrency sphere, that want to hedge some of their investments against a more stable currency like gold but don't like the hassle of handling and storing actual physical gold. They could buy gold stocks but many of these stocks are not guaranteed against real gold and many gold stock providers actually sell more paper gold than gold that they have access to, which is a concern.

On top of this, the dividends aspect attributes real tangible value to the DGD token. People will buy DGD in anticipation of earning dividends on their holdings from the fees generated by DGX transactions and demurrage fees. Many tokens in the cryptocurrency sphere are still completely based on speculation and many of them don't even have a plan on how to generate value for the token. This is why dividend yielding cryptocurrencies should be of the upmost interest to the knowledgable long term investor.

It is my opinion that DGD is on the verge of a huge increase in value. Keep in mind that DGD, at the time of writing this post, is only being traded on one major exchange in the west (Bittrex). I expect that at some point when Digix 2.0 is released, it will be added to more major exchanges and the value will increase significantly as the purpose of the token is discovered and people gain confidence thanks to DGX finally being released to the public. ~$125 million market capital at the time of writing is so low for a service that is so close to completion. Don't wait until 2.0 is released and DGD makes it to many more exchanges, get in before everyone else and acquire it now as soon as possible.