Bitx Gold crypto currency

By I_g_o_r | Gold backed crypto currencies | 14 Jun 2024

1. The main problem of fiat based cryptos

The most famous and popular cryptos (btc, eth, etc.) are based on fiat money (see [1]). Even the title of the famous paper has the following meaning: “bitcoin is a digitized on blockchain fiat currency”.

Here is the famous paper https://bitcoin.org/bitcoin.pdf"

Let us look on the title “Bitcoin: A Peer-to-Peer Electronic Cash System”. Cash means -fiat currency. Electronic cash means -digitized fiat currency. Peer-to-peer system means -blockchain. If we put all pieces of the puzzle together then we get that bitcoin is a digitized on blockchain fiat currency.

People buy cryptocurrencies using fiat currencies and wait for their price to rise. They will be disappointed, because when cryptos reach millions in fiat money these millions will be worthless, like in Germany during hyperinflation on in Zimbabwe (when many people had useless millions). Think about a crypto coin as a bag with fiat money. The amount of money in the bag is equal to the price of this coin. The higher the price, the more fiat money is in the bag. But, when fiat money are useless (hyper inflated) it does not matter what amount of useless fiat money is in the bag.

Only cryptos backed by hard assets (gold, etc.) will preserve wealth, because if you redeem gold backed crypto on physical gold you will have the physical entity (gold) with intrinsic values, which can not be inflated to zero as fiat currencies. See [7] on historical performance of gold during long periods of inflation.

2. Advantages of gold backed cryptos over physical gold

The first obvious advantage of gold backed cryptos over physical gold is portability/transportability. You do not need to take with you bags with gold when you are moving, relocating, or traveling.

The second obvious advantage of gold backed cryptos over physical gold is a speed of conversion to fiat or other crypto currencies.

The third advantage of gold backed cryptos over physical gold is availability of two ways to increase wealth. The first way is from appreciation of gold over inflated fiat currencies. The second way is from profitable trading during speculative bursts (see [2]).

3. Disadvantages of gold backed cryptos over physical gold

The first disadvantage is a counter party risk. This is a risk that the counter party will not deliver gold to you.

The second disadvantage is a technological risk. This is a risk that due to an error, malfunction, etc. some or all of your cryptos will disappear and then you will not be able to redeem them to real physical gold.

4. Bitx gold crypto

In this post we look at Bitx Gold. On the official website (https://bitx.gold/token-sale/#faq ) it is stated: “Bitxgold (BXG) is a gold backed coin & it’s classed as a security token. Our company Ace Stock Commercial Brokers LLC is based in United Arab Emirates. We are setting up a joint venture with the Emirates Gold Company in Dubai (UAE).

We are instructing Brinks UAE to Audit the Gold reserve and we will have a monthly report issued on our website.

The Founder of BITXGOLD is Shahram Z Moghadam (ALEX), Alex is a British national, residing in Dubai (UAE). He is the CEO of ACETEK SLUTIONS a blockchain development company based in Dubai / India ( www.acetek.solutions) . He has been actively involved in the crypto space since 2011 were he was lucky enough to buy his First BItcoins at around $30. Since then he has been a back bencher behind few success projects such as Bitcoin Gold in 2017. He is passionate to bring a security Coin to the market for hedging against any commodity in the global market. He strongly has the view that a Gold Back Crypto currency is the most secure and effective way of Saving your hard earned cash against inflation, theft &&& etc..

THE FIRST REAL SHARIAH COMPLIANCE TOKEN

Each BITXGOLD TOKEN is 100% backed by physical gold stored in secure vault. We guarantee BITXGOLD TOKEN’s liquidity. Unlimited amount of GOLD can be purchased/redeemed at our website instantly 24/7.”

5. Red flags

A) Claims of unlimited amount of gold

On their website, it is stated:” Unlimited amount of GOLD can be purchased/redeemed at our website instantly 24/7.”

B) Membership fees are required

To participate in staking, mining, and affiliate marketing membership fees are required.

C) Failed attempt to contact

On May 23, 2024 I had sent my questions to them.

As of today, I have not received any response from them.

D) Not ready for post quantum era

The majority of credible experts made public statements that the Q-day is very close (see [3-5]).

I have not found on https://bitx.gold/ site any document which gives answers on the following important questions:

1) Which post-quantum encryption algorithms will be used to secure their post-quantum blockchain?

2) When the post-quantum blockchain will be operational?

Except Vitalik Buterin proposal (see [6]), there is no any publicly available document which addresses the Q-day problem. There are no answers on these questions on Bitx Gold, Binance and Ethereum Foundation websites. All blockchains which will not be ready for post quantum era before the Q-day will disappear after the Q-day.

E) Trust score is low on scamadviser.com

Scamadviser.com gives low score.

F) Storage costs

Bitx Gold has storage fees about 0.99% per year.

G) Not secure web site www.acetek.solutions

On may 31, 2024 I had visited the web site www.acetek.solutions. As you can see from the screenshots below the https connection was not secure. This rises a question: “If they can not secure this website how secure are their crypto projects and solutions?”.