Diem is a decentralized stablecoin powered by the Libra blockchain. Facebook unveiled Libra in 2019 with a vision of being a stablecoin backed by multiple government-issued currencies. Due to its global usage and a hard stab on the traditional finance industry, it received international regulatory backlash.
In April 2020, the Libra team changed its tune and indicated that it would launch an array of stablecoins, each backed by a single fiat currency. However, more had to be done. Part of it was to rename the project and to minimize connection with the social media giant. “Day,” or Diem in Latin, was born.
Libra changed to Diem on December 2, 2020. Along with the change came a revised whitepaper with significant edits and omissions.
Background
The project is operated by the Diem Association, which was earlier known as the Libra Association. Stuart Levey, Ian Jenkins, and Dahlia Malkhi are among the key members of the team. The three make up the CEO, CFO, and CTO, respectively.
Notably, other team members have extensive experience in their respective areas. For example, its lead compliance officer, Sterling Daines, has immense hands-on financial crime compliance, while its general counsel, Saumya Bhavsar, is a former banking regulator.
Note that the Diem Association is registered in Switzerland as an independent membership organization. Its board members are drawn from Xapo, Kiva Microfunds, PayU, Andreessen Horowitz, and Novi.
Key Changes Made to The Libra Whitepaper
The first significant change is the dominance of the word “Facebook” and its role in the organization. For instance, the original paper mentions the social media giant more than five times and gives it a “leadership role.” However, therevised edition states that Facebook and its team have “no special rights” beyond assisting in creating the Diem Association.
Also, Diem is pegged to a single fiat currency (United States dollar) instead of a basket of currencies, as was the case with Libra. However, in the future, it may develop a multi-currency backed stablecoin.
Diem will also comply with international regulations.
Notably, the change of name never touched on the core use cases. Diem focuses primarily on instant payments and cross-border remittances. Furthermore, Novi, a virtual wallet meant to hold Libra tokens, will now hold Diem coins. Note that Novi is a rebrand of Calibra.
Conclusion
Diem is definitely a new ‘day’ for Libra, and by extension, could pick up where Facebook left off in its vision to launch a stablecoin to power payments and remittances globally. Its significant distance from Facebook and change of contentious issues is a great way to bring regulators back to the discussion table.
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Tether (USDT) is the world’s largest stablecoin by market cap with more than $65 billion in circulation at the time of writing. Stablecoins have long been the anchor of cryptocurrency trading because they are pegged to the U.S. Dollar, allowing investors to “cash out” of risky investments instead of swapping to another crypto coin that would fluctuate in value.
This catastrophic event spurred panic selling in other stablecoins, and Tether Ltd., the company behind USDT, honored billions of dollars’ worth of redemptions following UST’s bank run. As a result, USDT’s peg broke and fell to as low as 95 cents. It is a huge red flag if a stablecoin drops below 99 cents, especially for stablecoin heavyweights such as USDT itself.
Fortunately, USDT has passed the market’s stress test. They were able to withstand redemptions in extremely volatile conditions, eventually reclaiming the peg. However, Tether is still facing criticisms for the lack of transparency about the nature of assets backing the stablecoin.
Tether fights back: calls short-selling hedge funds “flat out wrong”
Many hedge funds saw the collapse of Terra as a reason to short USDT. According to a Wall Street Journal podcast, the reason for this is twofold. Firstly is the fact that institutional investors are withdrawing from risky investments (such as crypto) since the Federal Reserve is aggressively raising interest rates. Secondly, they are worried about the quality of the assets backing Tether.
In Tether’s blog post on 28th July 2022, Tether hit back at these hedge funds, saying that, “…the underlying thesis of this trade is incredibly misinformed and flat-out wrong. It is further supported by a blind belief in what borders on outright conspiracy theories about Tether.”
Tether also added in a blog post on 27th July 2022 that its portfolio does not contain any Chinese commercial paper. Furthermore, as of the date of the post, its total commercial paper exposure has been reduced to around 3.7 billion (from 30 billion a year ago). Tether also states that it has plans to further reduce its total commercial paper exposure to 0 by October/early November 2022.
What is Exactly Backing USDT Value?
Tether has claimed that all USDT tokens are backed 100% by the company’s reserves. According to their latest reserves attestation report audited by MHA Cayman, an independent accounting firm, the company’s total assets exceed its total liabilities, suggesting that USDT is fully backed. Its holdings include U.S. Treasury bills, money market funds, cash, and commercial paper.
Great, this finally puts an end to what is in their reserves and we can all sleep peacefully without worrying about a USDT collapse, right? Not quite. In fact, there are namely two big issues surrounding Tether’s backing.
Nearly Half of USDT’s Reserves Were in Commercial Paper
According to the report, Tether has more than $20 billion worth of commercial paper in their total assets. Commercial paper is a short-term unsecured debt issued by companies. This poses a problem to backing stablecoins because they are generally seen as less secure and illiquid, unlike cash and U.S. Treasury bills.
There have also been rumors that most Tether’s commercial paper holdings are backed by debt-ridden property developers in China, albeit Tether denies the rumors. As mentioned previously, Tether has denied rumours that its portfolio contains Chinese commercial paper.
On the positive side, Tether has taken an initiative in reducing its commercial paper holdings to zero in favor for U.S. Treasuries to back USDT reserves. Tether currently has around 3.7 billion in commercial paper exposure (as of July 2022) but plans to eliminate this completely by October/early November 2022.
Does this mean that Tether is taking on a leadership role in support of greater transparency for the stablecoin industry? Or is this just a facade, given that Tether continues to avoid a comprehensive audit? This brings us to the next issue. Ambien
Tether Has Yet to Undergo an Impartial and Comprehensive Audit
Though Tether was open about the state of their reserves, the problem lies with the firm that audited it. MHA Cayman is a small-time independent accounting firm based in Cayman Islands. So it is understandable that critics believe that it is more of a validation of information based on management claims than an audit.
John Reed Stark, an SEC attorney leading cyber-related projects for 15 years, tweeted that the best way for Tether to end the allegations against them would be to “engage a big-four accounting firm to conduct an audit which finds a rock-solid balance sheet. He also added, that, “without a proper audit, everything else Tether’s CFO says is just noise.”
The big-four refers to the four largest professional services networks in the world, consisting of the global accounting networks Deloitte, Ernst & Young, KPMG, and PwC. They have recently been getting involved in the blockchain industry, working with many crypto companies for regulation purposes.
A big-four audit carries a lot of weight with the SEC, and many larger companies want to be a part of it because it would make their enterprise more attractive and trustworthy to investors.
What Would Happen if USDT Collapses?
If USDT were to collapse, it would deliver catastrophic results in the industry, sparing nothing. It would mean the end of Ethereum DeFi which is a predominantly USDT-based market. This would trigger a chain reaction across all smart-contract networks.
Bitcoin will also be severely impacted as more than half of bitcoin is traded for USDT since 2019, according to data cited by JPMorgan analysts. As a result, history would repeat itself, triggering another bank run, destabilizing exchanges and causing a panic drop in Bitcoin’s price.
But we should not forget that USDT was able to maintain its stability through multiple black swan events and extremely volatile conditions, and has managed to stick to its values and honor all redemption requests during the UST collapse in May.
After all, USDT has long been the king of stablecoins and is critical for maintaining any confidence in the industry. All the big players in crypto will simply not let a collapse happen.
One major question all new cryptocurrency investors ask is how to actually spend their cryptocurrencies. Unfortunately, cryptocurrency is just not as widely accepted as fiat currencies. Cryptocurrencies are also subject to huge price fluctuations and volatility. Therefore, to “lock in” the price of your cryptocurrencies and as a springboard to cashing out crypto to fiat, many have converted their cryptocurrencies to stablecoins instead. This allows one to keep their dollar-pegged coins in exchanges or cold/hot wallets, so when the moment to jump back into the bull run comes, they can do so within minutes without having to deal with fiat on-ramps. Alternatively, to easily convert their stablecoins to fiat currencies for spending.
Most have considered stablecoins to be a safe means of preserving their capital without experiencing volatility and having to leave the crypto ecosystem. After all, they’re… stable, right?
In most cases, they have been, but the most recent collapse of one of the largest and well-respected stablecoins, terraUSD (UST), and other less known ones, like neutrino USD (USDN) and DEI, has led people to question the stability of all stablecoins. But is this warranted? Isn’t there a bit more nuance to the mechanisms by which a coin retains its dollar or other fiat currency peg, each with their own risks and advantages?
Although a seemingly straightforward idea, stablecoins can be quite tricky to unpack and analyze, especially when talking about non-collateralized algorithmic stablecoins, which sound too good to be true, and in some cases, are. With this in mind, let’s take a look at stablecoins, what kinds are out there, how well they are doing, and what makes them tick.
Check out our latest video- Stablecoins: Are they safe? ($UST, $USDT, $USDC, $BUSD)
Stablecoins: Are they safe? ($UST, $USDT, $USDC, $BUSD)
Stablecoins – What Are They and How Are They Different?
Stablecoins are cryptocurrencies that are pegged 1:1 to the value of a fiat currency, meaning that, for example, every 1 USDT (USD Tether, the biggest market cap stablecoin) is worth 1 US Dollar. There are numerous stablecoins in circulation, with different coins having different mechanisms for collateralizing their stablecoins.
The most commonly used feature to categorize stablecoins is by looking at how each of them backs their tokens, e.g. their collateral/reserves. By doing that, we can focus on using more narrow criteria for evaluating and comparing stablecoins based on the risks and advantages that stem from the chosen collateralization mechanism. Broadly speaking, there are three main types of stablecoins: Fiat-collaterized stablecoins, crypto-collaterized stablecoins and algorithmic stablecoins.
Fiat-collateralized Stablecoins
By far the most popular type, fiat-collateralized stablecoins occupy the top 3 spots (USDT, USDC, BUSD) among stablecoins by market cap, accounting for roughly 94% of the total ~$155 billion stablecoin supply.
Their working principle is the most straightforward to understand. Each of these coins is backed by a combination of real USD cash reserves, US Treasury Bills, and commercial papers (liquid short-term debt issued by companies).
Crypto-collateralized Stablecoins
Similar to fiat-backed stablecoins, crypto-backed stablecoins use cryptocurrencies as collateral, and smart contracts and, typically, governance tokens to monitor price stability. Due to the volatile nature of cryptocurrencies, crypto-backed stablecoins are over-collateralized (150% for DAI, for example) to account for periods in the market when prices of the collateral assets keep going down. Learn more about DAI.
Compared to fiat-backed stablecoins, they’ve witnessed a much slower rate of adoption. However, based on data, it does seem that they are slowly starting to gain momentum and dominance over the past years, as people begin to develop trust in the previously experimental mechanisms, which is to be expected.
There are also hybrid collateral tokens such as Reserve Tokens (RSV) that are backed by both digital and fiat assets.
By far the most technically complex and technologically least mature, algorithmic stablecoins rely on on-chain algorithms to handle changes in supply and demand between the stablecoins and their sister tokens that back them by burning and minting them in both directions through a process called seigniorage, to maintain a dollar peg. This, however, only works while there isn’t a strong downward pressure on the peg that keeps stressing the mechanism, which can lead to a downward death spiral during which both tokens keep losing value as users keep panic selling at the same time as the algorithm tries to stabilize the price. Although not fully collapsed, neutrinoUSD and its Waves protocol have been experiencing extreme turbulence for the better part of two months, making users lose confidence in its stability, especially as its working mechanism is very similar to that of UST.
On the less extreme side of algo-stables lie hybrid stablecoins, or fractional-algorithmic stablecoins, such as FRAX, which is partly backed by collateral, and partly algorithmically by adjusting the collateral based on the deviation of FRAX from the $1 peg.
Learn more with our Ultimate Guide to Algorithmic Stablecoins:
https://www.youtube.com/watch?v=hdmotWPNVdQ
Criteria for Comparing Stablecoins
Decentralization
The impact of regional regulations can be a risk many would not find appealing. It’s completely reasonable to expect that the industry would be capable of creating largely decentralized stablecoins that are collateralized by one or more decentralized cryptocurrencies, and governed by a DAO. Such is the nature of MakerDAO and its DAI stablecoin, which has shown its peg strength throughout this year and especially during the most recent catastrophic UST collapse. There is a small caveat, however.
The largest crypto-asset backed stablecoin with a $6.5 billion market cap, DAI, is still heavily backed by the second largest market cap stablecoin, USDC, which itself is backed by fiat reserves, calling into question whether it truly is as decentralized as it purports itself to be. The reality is not as grim as it might seem. Even though USDC and USDP (another fiat-backed stablecoin) comprise 28.1% of the total DAI collateral, ETH and WBTC (Wrapped BTC) boast an impressive 58.6% collateral, tipping the collateralization balance in favour of decentralized digital currencies instead of centralized stablecoins. In addition, the Maker platform with the MKR and DAI tokens, together with all of its smart contracts, lives on the Ethereum blockchain, making it truly trustless and decentralized, even if a good portion of the collateral is not.
On the other hand, the decentralization of all stablecoins might not be necessary, or even desirable, as properly regulated stablecoins almost by definition require a legal entity or a consortium of entities with exposure to major governmental bodies (especially in the US) to be behind the stablecoins, so that there is little doubt about who is responsible for ensuring a full fiat backing of their stablecoins. However, this would imply heavy centralization of control over the stablecoin supply and the general mechanisms for issuance, governance, and, crucially, potential censorship.
A centralized stablecoin is a double-edged sword. On one hand, it gives unprecedented power over a vast supply of stablecoins that a decentralization-focused industry heavily relies on to do daily business. On the other hand, it allows for companies like Binance, who are behind the popular BUSD stablecoin, to prioritize user safety and regulatory compliance, giving users peace of mind about the safety of their assets.
Thus, a strong argument can be made to safely onboard millions of new users through reasonably regulated stablecoins. It’s important for this industry to appreciate the need to offer a wide range of stablecoin alternatives, from centralized to decentralized, for users with different risk appetites and technical competencies in order to accelerate crypto adoption worldwide.
Compliance & Transparency
Closely tied with the level of decentralization of a stablecoin, regulatory compliance and transparency are absolutely crucial for companies who are backing their coins with cash reserves, and who desire to find strong and growing support by institutions, companies, and investors looking to enter the space, but who have been apprehensive to do so due to concerns about a potential inability to redeem their tokens for dollars.
It’s important to note that regulatory compliance is largely a concern for stablecoins operated by corporations, as they are the ones operating mostly behind closed doors, with most of the details about their inner workings, decisions, and collateralization mechanisms being hidden from the end-users and legislators. In such situations, it is more than reasonable to expect a regulatory body to force at least some oversight over how exactly these companies are operating their stablecoins and whether they do possess the collateral they claim to have.
The same can’t be said about open-source, decentralized governance-powered, blockchain-native, crypto asset-backed, and over-collateralized stablecoins that are being operated completely out in the open, with every decision, piece of code, and capital relocation in smart contract escrow accounts being registered on-chain. For coins such as DAI, compliance and transparency are baked into the protocol, and it can be reasonably argued that the necessity for any kind of regulatory oversight is moot, as the community and the free market cryptoeconomic pressures have organically grown a robust and freely auditable stablecoin that’s fully backed by digital currencies.
For fiat-backed currencies, the two large-cap extremes in the range of transparency and compliance are BUSD and USDT. While BUSD has been extensively cooperating with the New York State Department of Financial Services (NYFDS), and showing that every BUSD is backed by an equivalent amount of cash, USDT has been under significant scrutiny over the past years regarding its executives and the USDT backing. These allegations, combined with the lack of transparency by Tether, have made many worry whether USDT is a house of cards about to crumble as the Chinese real estate bubble begins to pop.
Financial Sustainability
In addition to the existential risks posed by the type of collateral chosen for stablecoin reserves, another source of risk that can be analyzed for a project is its cashflow. Changes in the cashflow of a protocol can offer clues about the health of the ecosystem and its ability to withstand market shocks.
Understanding how a stablecoin protocol spends and, most importantly, earns its money, is key to making predictions about the long term sustainability of such projects. Without proper long term revenue models, protocols are left to come up with highly appealing but unsustainable practices such as incredibly high yields on stablecoin deposits (such as UST had) or very low to non-existent trading fees to make it appealing for users to use that stablecoin as their dominant medium of exchange. These kinds of practices sooner or later come back to bite them in the ass, as there is a very high probability that the high yields and low fees are paid for not from organic revenues, but rather from alternative revenue sources (as is the case for Binance), or from project’s treasury/VC investment money, in hopes that they would be able to subsidize the attractive rates for long enough to reach a critical mass of users to then eventually either lower the yields and increase the fees, or simply keep running a ponzi-like operation for as long as possible.
Risks are High, always DYOR (Do Your Own Research)
If something in crypto sounds too good to be true, it very likely is. The most recent example of this was the Anchor Protocol’s 19.5% yield for UST deposits, which should’ve been a huge red flag, and yet many, many individuals chose to deposit their life savings into a supposedly stable UST in hopes of an unsustainably high APY.
For a $50 billion project to go down to virtually nothing in a matter of weeks is nothing short of astonishing, and should serve us all as a warning to do our due diligence thoroughly, and ask uncomfortable questions, even if the whole market seems to be fully on-board with a project.
As the saying goes, “Follow the money.” If a protocol is promising unbelievable returns, if the company behind a stablecoin year after year refuses to prove their fiat reserves, and if a algorithmic stablecoin seems to have a fishy peg stabilizing mechanism that can only work in an up-only environment, then you should exercise caution. And as with everything, whether it be cryptocurrencies or stocks etc, ask yourself if you have really fully done your research and never put in more money than you can afford to lose.
PAX Gold (PAXG) is a digital asset. Unlike Bitcoin, Litecoin and other cryptocurrencies in the market, each PAXG token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar. The gold bars are safely and securely kept in Brink’s vaults.
If you invest in PAXG, it means that you own the underlying physical gold which is kept in custody by Paxos Trust Company.
Compared to the other cryptocurrencies in the market, PAXG is more stable as it is commodity-backed, which means investors take possession of real assets – gold. This kind of stablecoin might take over the bandwagon other cryptocurrencies have created. Let’s find out more about it to see whether PAX Gold will steal away the crypto’s spotlight or not.
Background of PAX Gold
PAX Gold (PAXG) is a commodity-backed, gold stablecoin issued by Paxos. Paxos is the first blockchain infrastructure platform that has regulated PAXG. Its products serve as the foundation for a new, open financial system that is more efficient and quicker. Other than Paxos website, PAX Gold is traded at Binance US, Uniswap and Kraken. It can be bought at any broker account that supports PAXG trading like Crypto.com.
Currently, trillions of money are locked up in inefficient, out-of-date financial infrastructure that millions of people cannot access. Paxos is developing a revolutionary technology that will enable assets to travel instantly anywhere on the planet.
For corporate clients, Paxos utilises technology to tokenize, custody, trade, and settle assets. Its Paxos Crypto Brokerage and Stablecoin as a Service solutions allow Fintechs and financial institutions to provide crypto capabilities to their customers. It also provides securities and commodity settlement services. PayPal, Credit Suisse, Societe Generale, StoneX, and Revolut are among Paxos’ clients.
Stablecoin vs Cryptocurrency
First, we should look into the distinguishing characteristics of Stablecoin that set it apart from cryptocurrency but interlink in some ways too.
Stablecoins are cryptocurrencies whose value is tied to another cryptocurrency, fiat currency, or exchange-traded commodities (such as gold, silver and some precious metals).
Asset-backed cryptocurrencies like PAXG have the advantage of being stabilized by assets that vary outside of the cryptocurrency market. For example, the underlying asset is uncorrelated which lowers the financial risk.
Since Bitcoin and altcoins are strongly linked, cryptocurrency investors cannot avoid broad price drops without quitting the market or switching to asset-backed stablecoins. Furthermore, owing to arbitrage, Stablecoins are unlikely to fall below the value of the underlying physical commodity, provided they are administered in good faith and include a method for redeeming the asset backing them.
Stablecoins that are backed are still subjected to the same volatility and risk as the underlying asset.
Why is PAX Gold the trend now?
Stablecoins are a new type of digital currency that is backed by stable real-world assets such as fiat currency. The US dollar’s stability is combined with the efficiency of blockchain technology in PAX Gold.
This is why many investors are jumping from the “cryptocurrency boat” into “digital versions of traditional asset boats” like PAXG.
As of May 19, 2021, the flagship cryptocurrency – Bitcoin – hit more than three-month lows, falling to around $30,000 at one point. The latest decline followed a significant surge that began in the second part of the previous year.
Part of Bitcoin’s decline appears to be a temporary reversal in broader acceptability, as well as regulatory worries and weakening in more speculative sections of financial markets.
These investors are choosing PAX Gold (PAXG) as an alternative to the more volatile cryptocurrencies in order to escape the US dollar’s inflation.
PAX Gold combines the advantages of physical gold bar ownership with the speed and liquidity of a digital asset, fractional ownership, and none of the security risks associated with the physical gold bars stored in your house safe or paying for vault storage.
5 Benefits of PAX Gold
Actual gold on the blockchain provides the benefit of reflecting legal ownership of physical allotted gold while avoiding the disadvantages of limited transportability and expensive storage costs. It has the divisibility, fungibility, and tradability of any digital asset, such as Bitcoin. To put it another way, you get the finest of both tangible and digital assets at once!
Here are 5 more detailed reasons why PAXG should be in your next investment portfolio:
Safety and security
The New York State Department of Financial Services (DFS) regulates Paxos as a trusted business and custodian of PAXG, which is completely backed by allotted gold kept in the world’s most secure vaults. So if you’re wondering if PAXG is safe, rest assured. Every month, a nationally recognised auditor will testify to the matching supply of PAXG tokens and the underlying gold.
Backed by gold and other stable currencies
The only gold token that can be exchanged for LBMA-accredited Good Delivery gold bullion bars is the redeemable PAX Gold. Smaller quantities can be redeemed at a network of actual gold dealers for added convenience. Unallocated Loco London Gold is also available to institutional customers. Customers of Paxos can always redeem their funds for USD at current gold market rates. PAXG wallet has the same function like other cryptocurrency wallets, but what’s more special is that it can be redeemable for actual gold, if the need arises.
Competitive fee structure
Fee structure for PAXG token generation and redemption in the Paxos wallet is extremely competitive (0.03-1 percent depending on volume tiers), with minimal on-chain Ethereum transaction fees (0.02 percent) and no storage fees. For on-chain transactions, minimal Ethereum gas fees apply, as they do for all ERC-20 tokens.
Highly accessible
PAXG is an Ethereum-based ERC-20 token that may be transferred and exchanged anywhere in the globe at any time. Anyone may now buy a fraction of an LBMA-accredited London Good Delivery gold bar with minimal investment.
Flexible
Using the Paxos platform, you can easily exchange or redeem PAXG for fiat, physical, or unallocated gold. On major crypto exchanges, you may trade PAXG for other digital currencies. PAXG can be used everywhere that ERC-20 tokens are accepted.
Other than Paxos website, PAX Gold is traded at Binance US, Uniswap and Kraken. It can be bought at any broker account that supports PAXG trading like Crypto.com.
Conclusion
With over 20 vaults, exchanges, wallets and lending platforms, PAX Gold is handled securely without the hassle of you hiding physical gold behind your painting or underneath your bed. They handle everything. The speed and liquidity of this digital asset still has a long way to go before finally hitting the common ground with cryptocurrencies. But, it’s coming out strong as most of the people still trust gold which is less volatile than the peer-to-peer ecosystem.
Take the advice here with a pinch of salt as every fluctuation in the market is unpredictable and risky.
FAQ
Is PAX Gold safe?
Yes. Paxos, the custodian behind PAX Gold, is regulated by the New York State Department of Financial Services (DFS). The currency is also backed by gold that is kept behind the world’s most secure vaults. On top of that, monthly audits are done on the PAXG tokens by a nationally recognized auditor. The auditor will testify to the matching supply of PAXG tokens against the underlying asset which is gold.
Where can I trade for PAX Gold?
PAX Gold can be traded at PAXOS website, Binance US, and Kraken. It can also be bought at any other broker account that supports PAX trading such as Crypto.com.
What are the fees for PAX GOLD?
Fee structure for PAXG token generation and redemption in the Paxos wallet is extremely competitive (0.03-1 percent depending on volume tiers), with minimal on-chain Ethereum transaction fees (0.02 percent) and no storage fees. For on-chain transactions, minimal Ethereum gas fees apply, as they do for all ERC-20 tokens. At 0.03-1%, Paxos wallet fees are among the cheapest in the market. There’s also on-chain Ethereum transaction fees of 0.02%, which is also minimal, and no storage fees. This makes it very cost effective to trade and hold PAX Gold.
What’s the main advantage of buying PAX Gold?
With the current uncertainties in the crypto markets, PAX Gold offers an in-between solution where you can invest in crypto that is also backed by real world currencies such as gold and fiat. This may help reduce the risk of an investor’s overall portfolio
