Bitgold: The Virtual Gold?

/Bitgold: The Virtual Gold?

Bitgold: The Virtual Gold? 2018-02-18T21:18:27+00:00

Bitgold- And Its Relationship to Cryptocurrency

Bitgold is an online platform that provides gold payments as a means of a transaction to customers. The Canadian-based company was founded in 2014 and allows users to buy, save, redeem, and send payments to other account holders.

Nick Szabo is responsible for coming up with the ideas behind the implementation of Bitgold as a channel of transaction. The concept behind Bitgold is to consider it as a digital currency like Bitcoin for transactional purposes.

There are significant similarities between Bitgold and other widely recognized cryptocurrencies such as Bitcoins. First is the issue of a decentralized contracting platform hence the elimination of middlemen. Secondly, both currencies also tend to address the issue of inflation; which frequently hits fiat currencies such as the Dollars and Euros.

What is Bitgold? Everything you need to know about Bitgold

Bitgold is an online gold management platform. It is just like PayPal, Skrill, or Payoneer, where fiat currencies are managed; however, it utilizes one base currency, which is gold. Bit gold can be converted to and from over 150 currencies worldwide.

How does Bitgold coin work?

  • Bit gold allows peer-to-peer transfer of gold without the risk of double spending. Its system utilizes a Byzantine-resilient model.
  • The system entails an unforgettable creation of proof-of-work chains.
  • The Byzantine-model depends on network addresses, rather than hash computing powers, forming the basic concepts behind other cryptocurrencies such as Bitcoins, Litecoins, and Ethereum.
  • Bit gold has many technical properties of Bitcoins and other major cryptocurrencies;

It shows concerns on the topic of inflation as well as the elimination of third parties interests in transactions.

  • Bitgold aims to peg labor, goods, services, and time to gold.
  • It makes gold easier to own by anyone, as it is a website where you can store gold in different vaults located in different countries across the world such as USA, Canada, and Hong Kong.

Bitgold products

Bitgold Personal Account

  • A Bitgold Personal Account allows you any amount of gold via credit/debit cards, Banks wire transfers, SEPA (Single Euro Payment Areas), or even Bitcoins.
  • When you buy gold, receive an amount equivalent to the value of your money.
  • If you buy gold with a credit or debit card, 2% transactional fees are

Pros

  • It is one of the simplest and affordable ways to buy gold.
  • Storage of your gold in various vaults across the world is completely free.
  • Additionally, you have secured a gold storage.
  • Your physical gold is 100% secured, via an insurance coverage from Brinks Security.

Cons

  • There is a 2% processing fee charged while buying gold using debit or credit cards.
  • Delays in transactions can be experienced.

Bitgold Prepaid Mastercard

  • Bitgold personal account holders can access the Bitgold Prepaid Mastercard.
  • As a security measure, the card is loaded from the personal account, so that in the event of theft, all your gold cannot be traded.
  • The card is available in USD, Euro, and GBP currencies.

Pros

  • The card doesn’t charge account fees or interest payments.
  • It is a convenient way for converting and accessing gold in cash via different Mastercard ATMs Worldwide.
  • Since the card is loaded from the Bitgold Personal Account, there is no risk of huge losses in the event that it is stolen.

Cons

  • You can opt to only load the card when the price of gold skyrockets.

Gold Savings Account

  • Bitgold provides a savings plan to its clients in the form of a Gold Savings Account.

Pros

  • You set a stable savings plan in gold, which doesn’t easily deflate in value like fiat currencies.
  • As it is an automated plan, you do not have to remember to deposit funds into your account.

Cons

  • Since the process is automated, you are unlikely to know the price of gold at the time of deposit.

What is the relationship between Bitgold and other cryptocurrencies?

  • Like Bitcoins and other cryptocurrencies, Bitgold is a decentralized form of currency, it embraces peer-to-peer transactions.
  • Both Bitgold and other cryptocurrencies such as Bitcoin use proof-of-work as their founding basis of operation.
  • However, since Bitgold relies on network addresses rather than hashing powers (like Bitcoins), it is easy to flood its network with malicious address thereby forging transactions.

BITGOLD cryptocurrency

  • bitGold is one of the assets owned by Bitshares. The cryptocurrency, not so popular in the market, tracks the price of one ounce of gold.
  • Being a Bitshares asset means that bitGold is not in whatsoever way related to Bitgold Company.
  • Since its inception, bitGold has witnessed a stability in its prices which are compared to both fiat currencies such as the Dollar and cryptocurrencies such as bitcoins.

Bitgold safety and security

  • Bitgold basically makes physical gold available to anyone.
  • You can create a Personal Bitgold Account within a few minutes and get access to purchasing gold, receiving payments in gold, as well as making payments in gold.
  • When you buy physical gold via the online platform, it gets stored in different vaults across the world, depending on your choice of location.
  • The physical gold in the vault is 100% insured against loss by Brinks Company.
  • The online Bitgold platform relies on network addresses rather than hash power. This is the major weakness faced by the Bitgold online platform.
  • Working on network addresses means that there is a possibility of hackers filtrating the network with malicious addresses thereby forging transactions.
  • Despite trying to bring forth gold as a means of remittance, Bitgold mainly eliminates the hassle of having to move around with the precious metal.
  • It achieves this by having different vaults across the world from which gold can be securely moved. In fact, users can own gold without having to physically handle them.

What is Goldmoney?

Goldmoney and Bitgold are one and the same thing. On 22, 2015, Bitgold Inc made public its purchase of GoldMoney’s assets including its intellectual properties. The transaction was valued at Canadian Dollars 51.9m.

Since Goldmoney and Bitgold are merged organizations, all their products are similar including Bitgold Personal Accounts, Bitgold Prepaid Mastercard, and Gold Savings Account.

Before its acquisition by Bitgold, Goldmoney had significantly registered downtrends in its financial reports. Gold money was launched in 2001 with the aim of being the easiest way to invest in physical gold. Its founders include James L, Roy Sebag, Joshua Dale Crumb, James Turk, and Josh Crumb.

Are Goldmoney and Bitgold a safe investment?

Being a potential game changer in the gold industry, many investors might be troubled with the question concerning the legitimacy behind Goldmoney/Bitgold.

From an interview with CNBC, it was revealed the Bitgold platform has over 100,000 users; with each active user owning an average of $100 worth of gold.

Despite being embraced by a significantly small number of users, Bitgold is displaying signs of future potential. However, it is an untested means of transaction and has regulatory weaknesses.

There have been no major incidences of Bitgold being legally involved in scam accusations. Nevertheless, Goldmoney complaints indicate some users have raised alarm about their accounts being disabled on uncertain grounds.

Goldmoney reviews indicate that Bitgold is relatively new service provider which is unproven in most parts of the world. They have significantly unanswered legal questions which if they address while boosting user confidence and promote growth.

Interestingly enough, past attempts to revive gold as a currency terrible failed. Bitgold, therefore, deserves a hand of applause as a result of the various mechanisms they came up with to back up the highly failed agenda and revive it as a functioning project.

Summing it up

Bitgold can be better understood as digital gold. It is more of a ‘Paypal’ than a ‘Bitcoin.’ Before the merger between GoldMoney and Bitgold, the former had come up and patented the idea of ‘digital gold.’

In case you are asking yourself, ‘is Goldmoney safe?’ Know that it has the potential to change online payments in the future if at all it properly channels its resources. You should also bear in mind that customer adaptation of new ideas always grows slowly since most people would not want to take risks.

There is still a lot to learn regarding Bitgold and cryptocurrencies; for more of such interactive posts, kindly have a look at our other articles. Thanks for carrying on as the paragraphs unfolded.