Hello,
I like the xaurum concept and have also bought some xaurums on the exchange. Even though I can not say I understand everything 100 %, I I like the mix of crypto, gold and further tangible investments.
But I have a question that is bugging me and I hope that someone can answer it for me.
I know xaurum is a store of value and that price is going to increase over time with increased demand. Until recently, when the price has dropped, there was a lot of hype with frequent mints and increasing production price. We could read here on the forum statements like "to the moon, keep your xaurums tight and one day you will be filthy rich, hold your xaurums because they are getting more and more value with gold backing" etc. But what happens when everybody holds? With wider adoption rate the price is going up and it is a good investment, especially in terms of diversification of someone's investments. With the price going up there is always a temptation to sell and get the profit. When enough people do this the price is going down again. Some will maybe get filthy rich and others are going to hope for another shot
What I am trying to say is that xaurums can be used only as investment or trading on the exchanges. It's not yet really a currency, you can not buy any significant products or services with it. And even if you could, would it be smart? After all we all hope that the price is going up so we can make a profit. But again, can only get this profit with selling xaurum and getting fiat or maybe bitcoin. This type of "greedy" thinking that is typical for other cryptos is also encouraged with luxury-oriented promotions like expensive cars, yachts, villas etc. I am aware that you are trying to attract wealthy people. But what is better for currency; to get one investor who buys 500.000 of xaurums or to have 500 investors with 1000 investment.
In short, i guess my main question is how is xaurum going to become a functioning currency if most of its owners decide to hold it as long as possible and eventually try to sell and cash in? Why would anyone who believes in xaurum's increase in value bought coffee or vacations with it?
I like the xaurum concept and have also bought some xaurums on the exchange. Even though I can not say I understand everything 100 %, I I like the mix of crypto, gold and further tangible investments.
But I have a question that is bugging me and I hope that someone can answer it for me.
I know xaurum is a store of value and that price is going to increase over time with increased demand. Until recently, when the price has dropped, there was a lot of hype with frequent mints and increasing production price. We could read here on the forum statements like "to the moon, keep your xaurums tight and one day you will be filthy rich, hold your xaurums because they are getting more and more value with gold backing" etc. But what happens when everybody holds? With wider adoption rate the price is going up and it is a good investment, especially in terms of diversification of someone's investments. With the price going up there is always a temptation to sell and get the profit. When enough people do this the price is going down again. Some will maybe get filthy rich and others are going to hope for another shot
What I am trying to say is that xaurums can be used only as investment or trading on the exchanges. It's not yet really a currency, you can not buy any significant products or services with it. And even if you could, would it be smart? After all we all hope that the price is going up so we can make a profit. But again, can only get this profit with selling xaurum and getting fiat or maybe bitcoin. This type of "greedy" thinking that is typical for other cryptos is also encouraged with luxury-oriented promotions like expensive cars, yachts, villas etc. I am aware that you are trying to attract wealthy people. But what is better for currency; to get one investor who buys 500.000 of xaurums or to have 500 investors with 1000 investment.
In short, i guess my main question is how is xaurum going to become a functioning currency if most of its owners decide to hold it as long as possible and eventually try to sell and cash in? Why would anyone who believes in xaurum's increase in value bought coffee or vacations with it?
Andeas, hello!
All this questions / ideas already have answers on this forum. But nevertheless here are some answers, I hope you will find them helpful.
1. What happens if everybody holds Xaurum?
It is very unlikely that everyone will hold Xaurm, as you can see 24h volume is around 100.000$ every day and it has been up to 800.000$ two weeks ago. But if this happens the price on the coin market would surely go up and people would buy it of coin market for a production price, which means that even more gold would be bought, and value of each Xaurum would increase.
2. With the price going up there is always a temptation to sell and get profit, when enough people do this price is going down again. Some will maybe get filthy rich and others are going to hope for another shot.
Your description is typical description for almost every coin on the market but not for Xaurum. Behind every Xaurum there is certain amount of gold that is growing with every new Xaurum produced. So Xaurum even of coin market has actual value! You can exchange your Xaurum for gold at any time
Price on market can hypothetically fall to the actual value of gold behind Xaurum. With new gold gathered behind Xaurums price will rise again on and of market.
3. What is better for currency, to get one investor who buys 500.000 EUR of Xaurum or to have 500 1000 EUR investments.
I think currency needs to have both. Team behind Xaurum is already actively working in many countries where their representatives educate people about crypto world and spread the information about Xaurum face to face. They do not chase only billionaires but they spread the word among common people to. Here is a simple math: currently there are 3090 Xaurum holders which means that average holder has cca 42.000 XAUR, which at 0,23 price means cca 9700 EUR, based on that you can assume that average investment in Xaurum is much closer to 1000 EUR than 500.000 ☺
4. How is Xaurum going to become a functioning currency if most of its owners decide to hold it as long as possible and eventually try to sell and cash in? Why would anyone who believes in Xaurums increase in value bought coffee or vacantions with it
The fact is neither of knows what majority of Xaurum holders will do. But why would anyone sell and cash everything if value of his tokens is constantly increasing? Probably because life situation forced them to do so and they needed all the money they could get. Wise thing, at least for me is, to sell only amounts you really need and if you need it. Xaurum has the potential, because of its gold base, to become one of the most stable crypto currencies in the world. I personally would store all of my money in that kind of currency and buy things with it. The other thing why people who understand Xaurum will be thrilled to buy coffee or vacations with it is because with every transaction the gold behind each Xaurum grows. Process is called burning:
Burning actually means destroying Xaurum tokens, but not destroying the gold that they represent. Using the Burning mechanism, existing Xaurum tokens are destroyed and taken of the market leaving the gold they represent to the community.
This results in smaller quantity of Xaurum share the same quantity of gold. Unlike other crypto developers, Xaurum inventors have decided to give the transaction fees back to the community. Current transaction fee is 0,5 XAUR for every transaction on Ethereum Blockchain. All these transaction fees are being destroyed by Burning process immediately when transaction happens.
Like you pointed out you still do not completely understand the Xaurum concept, that is why I advise you to look into it a bit deeper, maybe read previous posts and comments on this forum if you are really interested. And definitely check the xaurum.org and xaurumfoundation.com, so you will be able to comprehend all the wonderful processes behind this coin ☺
Wish you all the best.