I've recently discovered DGD (DigixDAO) when I was learning more about Maker/Dai stablecoin setup. Previously, collateral in the Maker/Dai setup only utilized Ethereum. But Ethereum can be volatile at times, so it is a smart idea to add other forms of collateral to back the Dai and keep it pegged to $1. The more sources of collateral, the more stable Dai will ultimately be. So that leads to Maker backing the Dai with DigixDAO, which is, in turn, backed by gold bullion.
So that leads me to ask the question: "If DGD is backed by gold, then does it go up when Bitcoin goes down?"
The answer seems to be "YES!" as evidenced by the shown above. If this is indeed true, then this makes a great token to buy into as a means of shorting Bitcoin instead of the typical USDT (Tether) that many use now. During the current downtrend, I'm holding DGD and will buy back into Bitcoin when it's down trend reverses.
In the chart above, the bright green line is Bitcoin's price action plotted against DGD's price action. As you can see, in the last several hours of major price drop by Bitcoin, DigixDAO took a sharp turn upwards in diverging tandem with Bitcoin's change in price. This is one pair definitely worth watching and developing further swing trading strategies around.
And who knows, if DigixDAO truly does reflect Gold's prices, then we can potentially have the double-whammy of being invested in gold bullion should it begin to take off in the near future.
This may be one of the rare win-win situations in crypto-space during the late bear market run.
