Can gold-backed crypto tokens act as effective inflation hedges?

[chainsniff]

Yes, but context matters. Tokenized gold mirrors spot gold prices, so it retains the inflation hedge properties of physical bullion. However, volatility in crypto markets or illiquidity in on-chain markets can introduce short-term basis risk compared to the stable but slower-moving metal markets.

[Rimon Khan]

Gold-backed tokens combine physical stability with blockchain accessibility.

[Abdul Khan]

They hedge inflation effectively, provided reserves are fully audited and verifiable.