Bitgold has just launched a new gold storage and transfer service. Contrary to what the name suggests, this is not a form of Bitcoin backed by gold. It’s a secure mobile payment service that enables gold users to own gold and pay bills with it.
The stated goal is “to democratize global access to gold for stable savings, and to make gold useful in micro-transactions using the internet or mobile phones.”
In other words, Bitgold means to put gold back into use as money in everyday life.
The company has partnered with Brink’s for storage and delivery. Money flows in and out of accounts via MasterCard, VISA, China UnionPay, and other international payment services. Gold storage is allocated.
Gold can be redeemed in 10-gram cubes or 1-kilo bullion bars. Bitgold’s GoldCubes® are part of the marketing—their creators hope they will go viral.
And that’s really the key. Everyone all around the world knows gold is valuable, yet few have access to it. They feel it’s something for rich people with vaults in Switzerland. Bitgold wants to put it back in everyone’s pocket.
Will they succeed? Who can say, but there’s a plan here that goes far beyond the service’s existence. If it works, this could be huge. Meaning: it could cause a major surge in global demand—and prices.
Do we recommend it? Not yet. We want to see a good track record first. Our own Hard Assets Alliance remains our most-trusted service in this sector.
Win or lose, we’re happy to see Bitgold trying and wish them the best of luck.