Bitcoin currently expends about 200 TWh/yr of energy and emits about 100 MT (megatons) of carbon per year, while generating about 32,000 tons of electrical waste from obsolete hardware annually.
In contrast, tokenisation reduces gold’s footprint because one does not have to constantly fly the asset around the world.
A first-mover advantage does not always last. Other crypto tokens already have various features that bitcoin does not, and the tokenisation of gold could be the latest innovation that overtakes the value of the most famous crypto on the planet.
Sure, the mobilisation of gold via tokenisation is unlikely to take off tomorrow. But the technology is available and where there is an investment will, there is always a way.
After all, great portfolio manager minds all think alike.
Julian Eyre is director – digital commodities business development at Paxos
