The troy ounce (abbreviated as ozt) is a unit of mass used in the measurement and trading of precious metals, such as gold, silver and platinum. It is named after Troyes, France, where it originated during the Middle Ages. The troy ounce has been adopted by cryptocurrency exchanges around the world for pricing and exchanging digital assets such as Bitcoin or Ethereum.
A troy ounce differs from an avoirdupois (or “avdp”) ounce in that it is slightly heavier. There are 32.15 troy ounces per kilogram compared to 28.35 avdp ounces per kilogram – making one troy ounce equal to 1.09711 avdp ounces (1ozt = 1.09711oz). One US dollar equals approximately 0.7734001327 troy ounces of gold at current market prices (June 2021).
Cryptocurrency exchanges use various methods when calculating prices based on a given quantity of coins or tokens expressed in terms of a specific weight unit like the troy ounce: spot price method, simple average method and volume-weighted average price method among others. Depending on which exchange you’re using, different methods may be applied so please refer to their respective documentation for further information about how they calculate their prices in relation to a given quantity expressed with respect to this unit of measure – i.e., one bitcoin priced at X number of dollars per one-ounce equivalent units etcetera..
It’s important to understand that not all cryptocurrencies are priced according to this system; some use alternative systems such as satoshis/bits or simply USD/BTC etcetera.. However many large exchanges have standardized the practice due its simplicity and convenience when trading digital assets across multiple markets simultaneously; since most investors prefer dealing with weights than other measures like mBTCs or satoshis when evaluating investments against each other – i e comparing ETH vs BTC via weighing them up both against an equivalent amount expressed per one single standard weight unit rather than two separate ones ie millibitcoins&satoshi’s versus only bitcoins respectively…