BitGold

chica
By chica on Thu, Oct 8, 2015 - 4:05pm

I am wondering if anyone has looked into  BitGold  with its offer of free gold storage, and goal of setting up a payment system, or has an  opinion on the merger with GoldMoney. I don't know if this has been discussed anywhere on this site, but I would like to know if people think this is something that could succeed or that one could have confidence in.

Thanks for any input. 

Chica

2 Comments

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 3077
BitGold - stumped

Chica -

The guys from BitGold contacted Peak Prosperity a few months back. They're fresh from raising a bunch of investment capital and looking to deploy it in a big marketing blitz. You've probably seen their banner ads splashed across at lot of sites in the same space as PP.com.

To be honest, I was left scratching my head after our call with them. It was really unclear why someone would use BitGold over current alternatives and when pressed, the founders admitted they "really haven't yet nailed down the value proposition to the consumer". Which shocked me, given that they had just raised a truckload of money in part to fund a massive consumer marketing campaign. Why raise all that money before you've figured out a winning story to sell?

As best I can tell, their strategy is similar to PayPal's in the old days: get a bunch of retailers to accept it and have the retailers encourage their customers to adopt it for payments. Maybe that strategy will be successful, maybe it won't. You're competing with all the credit card providers and digital payment solutions  like PayPal, Dwolla, BitCoin and all its variants, etc. (By the way, BitGold has no relationship to BitCoin, concept-wise or technology-wise. As such, its naming is really misleading.) The BitGold guys did not leave me with the impression they had a clear vision for winning here. But who knows? I wish them well -- though have to say it has been a few months and I've yet to see a "pay with BitGold" button on any of the e-commerce sites I've visited.

As for the acquisition of GoldMoney, I think they did it for several reasons. GoldMoney gives them an upsell solution for higher net worth accounts. It also gave them access to GoldMoney's gold-gram platform, which I suspect will be an important feature for BitGold later on (allowing people to trade fractional volumes of gold as micro-payments). From what I can tell, which is mostly speculation at this point, is that GoldMoney will continue to run as it has in the past -- I don't suspect any reason for concern for existing GM account holders.

 

 

chica's picture
chica
Status: Member (Offline)
Joined: Jan 22 2011
Posts: 2
Thanks and still wondering.

Thank you Adam,

Actually my very first impression was "no storage fees and insurance on us.' seems so much of an advantage over others because of the costs of holding gold. I wondered how they could make that work.And why would GM account holders be paying storage fees when BItGold holders do not. I have been informed however that BitGold accounts have smaller limits and GoldMoney is for larger accounts.  I am skeptical about using gold for payment as I think perhaps most people hold gold as a form of saving that they hope retains value, without counterparty risk, etc. and as some kind of insurance in case of financial breakdown. Like you I wish them well but my concern is that I am a GM account holder and I am wondering how their  success or failure will affect GM.  I felt I would like to get some independent opinion.

Thanks again.

 

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