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Bitcoin Vs. Gold

Bitcoin Vs. Gold

Bitcoin Vs. Gold

For thousands of years, gold has been the international currency, and for good reason. Gold is a substance that is in high demand and there is a finite amount that can be produced. Bitcoin, through cryptography, was created on these very principles. Bitcoin must be mined, is in high demand, and there is only a finite amount that is available – just like gold.

Relative to its short history, Bitcoin has made a significant global impact and has become popular with those who seek an alternative to fiat currency. Only time will tell which has more upside: bitcoin or gold.

Original infographic from: JM Bullion

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  • canadian1969

    Just wait till your crypto exchange of choice offers you trading in precious metals and commodities as well.

    • Which exchanges do you suspect will be offering bullion in the future?

      • canadian1969

        Just a prediction, I can see it happening. Anthem Vault is interesting, INNcoin. I am only saying the experimentation is happening. How it all plays out is anyone’s guess.

        • The idea that one’s crypto exchange of choice will offer trading in precious metals and commodities is not exciting. Wall St. & FOREX charlatans can and will likely set up “trading” vehicles with little to no real underlying value, keeping people in digital/paper mirages.

          The concept of having one’s cyrpto backed by bullion in a vault somewhere is still dubious for it requires absolute honesty and perfect execution from the exchange, vault managers, etc.

          I think the real challenge for a trustworthy exchange IS to offer redemption and delivery in physical bullion throughout the 1st world at a minimum. Issues lie mainly in logistics of redemption, delivery, and costs associated.

      • Vaultoro

        We will be specialising in this.

        • subscribed and should have EU citizenship within 1 year or so. Here’s to your building something awesome 🙂

          • Vaultoro

            Thanks James! Yeah we have logistics for delivery as well as vaulting, 3rd party Auditing, insurance and a heap more all sorted out. We are in the final stages of alpha testing the trading engine and are looking to launch by the end of the year. Long live the blockchain! long live gold!

        • Do you have any concept on bullion logistics, etc? You will need physical redeem-ability to make a real splash.

          • Yes, people can physically get their gold delivered out to them if they would like

  • Jack Boling

    there is also a company from Canada that is doing something similar bit gold there site is still in beta. They offer a bit card backed in the gold that you have purchased. I think this is a great idea. I do have to say I have an Account on Vaultoro as well as the elemetal vault JM Bullion and Provident Metals. Each seam to have there strengths and weaknesses. JM Bullion and Elemetal Vault both lack the ability to pay or transfer funds using crypto currency. Moving money with Crypto Currency is fast. I hate the fact that I have to send my money from one bank to another. then Wire Money. It is not a fun process. I would like to be able to send My money in BTC to the Exchange and be able to instantly convert to a Fiat currency. Crypto is too volatile so If I could send to an Address on the Exchange the Move it to a Fiat say USD / EURO etc. So that is the move from crypto speed to the exchange. On the Exchange I can convert to a Fiat for less volatility. Then I can purchase Precious Metals / Diamonds etc. Per the Exchange Rates. The Precious Metals are stored in a Vault. So I can buy and sell in increments. To Take Delivery on the gold I could either Take Delivery on a standard size Coins or Bars. Or I could have the options for Local delivery from a Local Metals Dealer. So say I want to take delivery and I want 2 Krugarands Since Vaultoro is not in the US. They Partner with JM Bullion. I have a linked account. So when I am ready I sell my Gold on Vaultoro and I can now send it using Crytpto to my Linked Account on JM Bullion. JM then processes my order and send me the coins. And it is fast and a local shipping delivery in the states. Otherwise I can hold in Gold in the Vault and build my stack and if I want to have a 100G Bar sent I could. Using a Digital BitGold Equivalent a Debit card could also be given. And used to liquidate the bit gold using FIAT. So My Debit Card is Backed in the Gold that I have in the Account. This would be the best of all worlds.

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