Will There Ever Be A Gold Platform That Performs Like Bitcoin? - Bitcoinist.net
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Will There Ever Be A Gold Platform That Performs Like Bitcoin?


The company BitGold has just recently announced its mobile one-time and recurring payment feature through its platform. Users can now send reserves of the shiny precious metal in digital form via Android and IOS systems. All transactions within the system are always settled in vaulted gold. As global markets crash today, cryptocurrencies like Bitcoin and precious metals like gold have remained solid investments. The faster we can transact with these assets the better.  

Also read: Walter Isaacson: ‘There Will Always Be A Place For The Original Bitcoin’

“Gold has always been a great savings currency,” Darrell MacMullin, CEO of BitGold

BitGold_Logo_360There will always be companies who want the legacy trust involved with Gold (AU) and the speed of Bitcoin-like transactions for their clientele. Darrell MacMullin, CEO of BitGold believes this latest offering is a great achievement for the precious metal sector by introducing gold through the mobile playing field. The commodity has always been traded and sought after for thousands of years and now it can be sent through cyberspace near instantly. MacMullin explains, “Gold has always been a great savings currency,” and he continues “Now, we add utility to gold with an easy-to-use operating system utilizing the latest payments technology. The BitGold Request Gold feature provides a truly global, efficient alternative to conventional bank or money transfer services and their ‘hidden fees’ in order to request or transfer value cost effectively. As a one-time payment request, or recurring in subscriptions, installments or retainers, this new feature has been designed to take the complexity and hidden costs out of requesting or sending funds globally, saving users both time and money.”

vaultoro-logo-blackBitGold is a subsidiary of GoldMoney Incorporated a full-reserve financial firm. The company offers an array of services within the storage of precious metals and its trade executions. With the BitGold application the company allows users from over 200 countries access and maintain AU reserves more fluidly. GoldMoney Inc. has over 550,000 clients and continues to expand its services within the bullion ecosystem.

There are a few outfits who supply gold trading and crypto-exchanges through their platforms such as Vaultoro. The company enables users to convert their cryptocurrency into gold deposits. Attempts to create a digital currency using gold could possibly help Bitcoin’s stability, and there are those who really would like to meld the two together. Users operating with the Vaultoro application can also choose a 50/50 service that allows savings in both precious metals and cryptocurrency.

UnknownBitGold is not a cryptocurrency application and does not aim to be so. The company also takes a settlement fee of 1% per transaction for all of its P2P operations. Despite this fee, it is quite easy for people to send gold through their platform at a far cheaper rate than most international exchanges within the precious metals sector. BitGold wants to capture the popularity of smartphone use and financial savings with gold. This market is barely touched and could gain quite a bit of popularity.

BitGold claims on their website that they have the best prices within the industry as they have over “ten physical brinks locations” giving users lower prices overall. As said above there have been attempted trials of moving bullion speedily online, but operations like eGold, for instance, have failed miserably. The reason that Bitcoin has done so well is possibly because it doesn’t carry the weight of reserves and the tethered aspects of precious metal markets. However, it is still a dream for many to integrate or even emulate the digital currency’s aspects with gold or silver. When the economy is looking like it is in turmoil people will be looking into superior safeguards like silver, gold and Bitcoin. But can there be an eGold-like system that can compete with the digital currency? Time will tell… 

Will there ever be a gold platform that performs like Bitcoin? Let us know in the comments below.

Images courtesy of the BitGold website, Vaultoro website, and Wiki-Commons 


Jamie Redman

Jamie Redman is a crypto writer and a dragon on Tuesdays. Follow me on twitter @jamiecrypto

  • earonesty

    Rediculous idea. Done correctly, with Bitcoin the actual value is completely in your control. No company can go bankrupt and lose your investment for you. With “BitGold”, you’re trusting a random 3rd party to custody your assets. Which is exactly what’s wrong with *every other kind of asset besides bitcoin”. As soon as the “vault company” goes bankrupt – you’re screwed.

  • bogus

    When government decide that its citizens should not exchange or own gold bitgold will be no more.

  • Wolfman Jack

    Agreed. If you want to hold gold then hold physical gold yourself. If you need to buy things online or move value around hold bitcoin.

  • JC15XAU

    How is the value of a Bitcoin in your control? …but before we get to that, please don’t call something ridiculous when you clearly haven’t taken the time to understand the technology and infrastructure of BitGold. Lets compare them in the real world, not a theoretical world where something can hold value and be a medium of exchange without third parties (Bitcoin is interesting, has some potential, but has so far proven neither a store of value or liquid medium of exchange on its own without third parties). Lets compare BitGold and Bitcoin. There are two issues here, A) value and B) custody. A) With BitGold you hold the value of gold, which is clearly tested by time; not a single macro asset or currency has ever outperformed gold over the savings life cycle of a human being. Ever. There are also billions of people that don’t have to be educated on gold (scalable + liquid globally, 7 trillion dollar market vs 6 billion). Bitcoin is interesting and has commodity utility, it doesn’t have to be zero sum as they both have their value (like silver and lead). But in comparing bitcoin to gold as a store of value it is way too early, and unlike gold, bitcoin’s price is not anchored in foundational industries, so it will always be an investment asset, not a savings asset B) With BitGold you also have custody in a framework of a trusted but limited third party (TLTP – or human block chain – a framework of auditing, insurance, regulatory oversight, and a separation of powers to reduce TTP conflict), its not a “random third party” or banking counterparty (like most of the bitcoin custodians and exchanges with limited operating history, high failure and hack rate, and a lack of regulatory oversight with no auditable custody standards and plenty of conflicts of interest at point of exchange). If the vault company (BRINKS) or BitGold (TSX:XAU) go bankrupt (and both are publically traded, no debt, and nowhere near insolvent), the gold is still fully reserved with title to the customer, not the vault operator or software company (BitGold operates under bailment law, the gold is not a liability like in a banking relationship – its always the customers gold – with BitGold just managing the “paperwork” and exchange liquidity of your asset). ….Bitcoin is very interesting, a useful commodity, but only without the third parties that are so far needed for it to run at scale (and legally) in the real world (these exchanges and third parties, and KYC/AML agents negate the “no third party” hype). But you can hold both, Gold for stability and desirability, and now liquid as a currency with BitGold, and Bitcoin for speculation that it will one day have stability and find a valuable real world use case for the underlying technology (hopefully before it is replaced by a better nakamoto consensus).

  • Gaurav Varshney

    Hello there,

    This looks like Josh Crumb. Sir could you please give us an idea of how far you are into the “Aurum” roll out and what are the further developments to expect in this platform. How far are we from seeing day to day transactions taking place on this platform? Please enlighten us on the number of accounts with Bitgold and the percentage of accounts active on a daily basis. I have a long term vested interest in Bitgold.