| > What incentive does Bhutan have to cater to foreign investor interests? Bhutan is actively encouraging foreign investment for obvious reasons. For example, see Gelephu Mindfulness City [1]. The King and his government have published their reasoning. > Who/what determines the token values? Is it based on market demand for tokens or the market price of gold? If the price of gold increases 50%, are token values guaranteed to follow suit? Yes. Presumably there is a redemption mechanism, providing arbitrageurs opportunities to close price discrepancies between the token and spot gold for a profit. > I'm trying to understand the advantage here over ETFs The vast majority of Earth's population doesn't have access to US-based ETFs. Second, if a significant amount of your assets are already on chain, it's painful to move them back to a fiat-based brokerage account to buy a gold ETF; you risk the whims of an arbitrary bureaucracy, frozen assets and delays over which you have no control. 1. https://en.wikipedia.org/wiki/Gelephu_Mindfulness_City |
So risk without any real reward --- at least compared to gold ETFs in the USA.