BitGold explained

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Mesquite
Mesquite Posts: 4,075 ✭✭✭
in Precious Metals
Two new pieces by Bob Moriarty

1st

2nd

These might be of some general interest to y'all.
There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.
–John Adams, 1826

Comments

  • derryb
    derryb Posts: 38,605 ✭✭✭✭✭
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    From the second link:

    "BitGold has no counterparty risk. You own it. It’s yours."

    Anytime someone else has their hands on your gold there is counterparty risk.

    Also of importance:

    "The United States of America is currently not part of the List of Supported Countries."

    Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat

  • OperationButter
    OperationButter Posts: 1,672 ✭✭✭
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    pretty interesting company and idea. too bad its not allowed in the US.
    Gold is for savings. Fiat is for transactions.



    BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
  • Stork
    Stork Posts: 5,208 ✭✭✭✭✭
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    That sounds like a familiar business plan. Didn't GoldMoney start that way? Open an account, and holdings based on how many grams you owned...and for awhile there could buy stuff with your grams at various websites? It doesn't look like that's how the company is anymore--maybe all that regulatory stuff that keeps BitGold out of the US is the problem. But I'm sure I saw some eBay auctions, maybe even Witco, offering to take GoldMoney grams back in the day (and before paypal and eBay became so enmeshed). Like the early 2000s time frame. Now GoldMoney looks like a regular gold storage program.

    Interesting concept, but is it truly different than any other plan where you have to trust another as a custodian? In this case there is a debit card linked to the account, and you money is in gold instead of dollars/euros/whatevers.


    edited to add:
    Link to e-gold entry, and GoldMoney gets a mention partway down

  • ricko
    ricko Posts: 98,724 ✭✭✭✭✭
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    No thank you... I will hold my gold... Cheers, RickO
  • BAJJERFAN
    BAJJERFAN Posts: 31,659 ✭✭✭✭✭
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    So would you maintain a cash and a phys gold balance? If you buy something is it going to sell just enough gold to cover the cost of what you've purchased?
    theknowitalltroll;
  • roadrunner
    roadrunner Posts: 28,374 ✭✭✭✭✭
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    No counterparty risk? No storage fees?

    There's always a counterparty risk unless you are your own counterparty. And someone pays to vault it, always.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • Baley
    Baley Posts: 22,663 ✭✭✭✭✭
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    This a gimmick.

    Seems like a hybrid cross between an ETF and a debit card, with the host making 1% on the additions and the subtractions, and the funds fluctuate with gold spot.

    Yikes, like you guys, if I want gold I'll jingle the coins in my hot little hand, if I want to speculate I'll work the ETFs. I personally don't need this thing,

    but it seems like a great way to burn the newbies off of metals investing forever

    Liberty: Parent of Science & Industry

  • RedneckHB
    RedneckHB Posts: 20,236 ✭✭✭✭✭
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    It violate the KISS principle. No thank you.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • KennyBerger
    KennyBerger Posts: 74 ✭
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    Seriously, it's his niece in the story? You don't find this a conflict of interest?
    PCGS
  • OperationButter
    OperationButter Posts: 1,672 ✭✭✭
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    << <i>Seriously, it's his niece in the story? You don't find this a conflict of interest? >>



    He took his niece on a trip. While there he met a guy. What conflict?
    Gold is for savings. Fiat is for transactions.



    BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
  • Mesquite
    Mesquite Posts: 4,075 ✭✭✭
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    Seems to me that what he is describing with bitgold is taking us back to pre-Nixon; maybe even pre-Johnson era. Use to be that you could exchange the greenback (certificates) for gold or silver if you wanted to. This has much the same ring to it. My guess is that's why the US won't allow it. The whole system is, of course built on trust and that is in short supply these days, for good reason in my opinion. As he says, your best option is to hold your own PM's; second best may be to have a bitgold account if you reside outside of the USA. For world travelers this might make currency exchange almost automatic.
    There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.
    –John Adams, 1826
  • derryb
    derryb Posts: 38,605 ✭✭✭✭✭
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    just another twist on an "allocated" gold account. Your gold is there until all of a sudden it isn't. Sorta like the disappearing bitcoins.

    Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat

  • s4ny
    s4ny Posts: 1,594 ✭✭✭
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    You either hold physical gold or you have something else. Everything else is not gold.

    GLD trades like a stock and moves like gold but it is not gold.

    "Bitgold?" Who needs this?

    If something has to be explained, I don't need it.
  • roadrunner
    roadrunner Posts: 28,374 ✭✭✭✭✭
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    One of the more level-headed market analysts out there.

    Steve Saville's view of bitgold
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • derryb
    derryb Posts: 38,605 ✭✭✭✭✭
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    << <i>One of the more level-headed market analysts out there.

    Steve Saville's view of bitgold >>


    While I too respect Saville, he fails to discuss the counterparty risk of an allocated metals account. For that reason, as Mr. Wonderful would say, "I'm out."

    Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat

  • johnny9434
    johnny9434 Posts: 34,054 ✭✭✭✭✭
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    << <i>No thank you... I will hold my gold... Cheers, RickO >>

    same here.. fwiw
  • derryb
    derryb Posts: 38,605 ✭✭✭✭✭
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    BitGold just became a serious platform for savings and making payments in gold - bought GoldMoney for CAD 51 million.

    Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat

  • Zubie
    Zubie Posts: 1,160 ✭✭✭✭
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    Looks like trading was halted on their stock. Hmmm???
    Positive BST Transactions with:
    Overdate, BestMR, Weather11AM, TDEC1000, Carew4me, BigMarty58, Coinsarefun, Golfer72, UnknownComic, DMarks, JFoot13, ElKevvo, Truthteller, Duxbutt, TwoSides2aCoin, PerryHall, mhammerman, Papabear, Wingsrule, WTCG, MillerJW, Ciccio, zrlevin, dantheman984, tee135, jdimmick, gsa1fan, jmski52, SUMORADA, guitarwes, bstat1020, pitboss, meltdown, Schmitz7, 30AnvZ28, pragmaticgoat, wondercoin & MkMan123
    image
  • RedneckHB
    RedneckHB Posts: 20,236 ✭✭✭✭✭
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    Schiff sounds jealous. http://www.marketoracle.co.uk/Article50801.html
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derryb
    derryb Posts: 38,605 ✭✭✭✭✭
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    As usual, Schiff sounds correct and cohodk sounds like CNBC.

    Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat

  • RedneckHB
    RedneckHB Posts: 20,236 ✭✭✭✭✭
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    Rah Rah Rah
    Go team go.
    Lmao! !!


    Is Schiff lamenting that he didn't have the wherewithall to follow through on "his great idea". Making excuses for lack of technology?

    If given the choice between being a cheerleader and a whiner, I'm choosing cheerleader.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derryb
    derryb Posts: 38,605 ✭✭✭✭✭
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    << <i>Rah Rah Rah
    Go team go.
    Lmao! !!


    Is Schiff lamenting that he didn't have the wherewithall to follow through on "his great idea". Making excuses for lack of technology?

    If given the choice between being a cheerleader and a whiner, I'm choosing cheerleader. >>


    And a fine one you are.

    Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat

  • Baley
    Baley Posts: 22,663 ✭✭✭✭✭
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    If cheering the United States of America and booing the boo-birds who do nothing but complain about, well, practically everything, is a "cheerleader",
    particularly this weekend, well then, count me as one too and proud of it

    Liberty: Parent of Science & Industry

  • derryb
    derryb Posts: 38,605 ✭✭✭✭✭
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    The value of your currency and your metals is not about patriotism and loyalty. It's now a world stage. Outside players have a lot of inside influence. Ignore this at your own peril.

    Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat

  • RedneckHB
    RedneckHB Posts: 20,236 ✭✭✭✭✭
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    << <i>The value of your currency and your metals is not about patriotism and loyalty. il. >>



    And this is why you are always wrong.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • Mesquite
    Mesquite Posts: 4,075 ✭✭✭
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    Just to extend the conversation - BitGold now available in the US.

    Text
    There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.
    –John Adams, 1826
  • ricko
    ricko Posts: 98,724 ✭✭✭✭✭
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    And I am still not interested....image Cheers, RickO
  • TwoSides2aCoin
    TwoSides2aCoin Posts: 45,216 ✭✭✭✭✭
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    Money works against me all the time. BitGold will likely do the same , knowing my luck with every form of the _ _ _ _.

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