In case you have not heard yet, gold is the new green. Well, in this review, I’ll be sharing with you the ins and outs that come with the company they call Bitgold.
Thousands of people are ditching tired old paper and converting it to hard, solid, blocks of gold. What is the appeal? Well, in case you’ve never taken any kind of economics class or just have been living under a rock, money pretty much equals gold.
That wad of cash in your wallet is nothing more than a representation of a few bricks that happen to reside behind some extremely well-guarded walls.
So why do we carry what are essentially “cash notes” instead of the gold itself?
Well, for starters, the value fluctuates, as does cash. What cost say, one solid nugget today could cost you two nuggets tomorrow. By carrying around money that represents said gold, you have a more equal standing on what things are worth.
Second, and probably most important, have you ever tried to carry a wallet full of gold? I, personally, have not, but I assume it’s heavy, unwieldy, and generally a chore to lob around.
Now, you may be asking “What about plastic?”
Well, yes, credit and debit cards have far surpassed actual cash, but it in and of itself is still nothing more than a representation of the paper which is a representation of the gold, which is a representation of the value.
Run on sentences aside, you may be wondering if there is a way to electronically store your gold with the convenience of easy access, but the comfort and security of a well protected online site.
That is exactly what the people over at BitGold.com asked themselves. And this site was the result.
When you think of money, you don’t usually think of it in terms of a representation, but that is exactly what BitGold has done. Using the basis of the fiat money system, BitGold takes the current value of gold, monitors it up to the minute, and allows the trade and exchange online for the current value.
Unlike the days of purchasing a stock or exchanging a currency and having to wait sometimes days to see what the value is, BitGold takes away the hassle of the research and waiting and give you an almost up the second update on what exactly it is that you own.
The sign up itself is free
But, gold redemption is a mere $25. Basically, all you have to worry about is how much gold you would like to purchase and if and when you would like to sell.
Now, you would not be a responsible adult if you did not take a moment to question the secured protection of said practices.
Yes, the site is secured, but to what extent?
They are merged with provided who themselves have gained a certain amount of trust (such as BullionVault.com) but have also been known to have dealing with some less than reputable accounts (such as GoldMoney) and the owner himself has gone so far as to endorsing online gambling using his services.
While that statement in and of itself may not seem too outlandish, the very thought of gambling away what they claim to want to protect is enough to at least raise one or two eyebrows.
The site itself is relatively simple to use
And with well over 100,000 subscribers, they can’t be doing too bad. There have, thus far, been very little negative word about the site, but it has had some criticism that the owners themselves do not seem to be going out of their way to correct.
In fact, Dominic Frisby of MoneyWeek.com stated in his May 19, 2015 review that
“We don’t ask whether you should run away – but how fast. …As someone who’s seen what Vancouver is capable of, this has set all my alarm bells off. There’s been a lot of hype and now somebody is selling. There’s an expression for that. …On the back of E-Gold’s (relatively short-lived) success, many other companies sprang up and failed – Ebullion, Standard Reserve, INTGold, and, most notoriously, (it was an enormous Ponzi scheme) OS-Gold. They all died a death.”
Some reports say they have lost over 70% of sales over the last three years and as of March of 2015 is still posting losses, but customer base itself still seems to be going strong. The ease of which they have made trading and following are incredible.
A complete novice can feel like an experienced trader just taking a glance at the current charts and figures that are constantly being posted by the second to the site.
With such an easy and open source for exchange and trade, yet an overwhelming amount of numbers against them, it’s easy to see how the average person could be confused by BitGold and it’s promises.
Overall from customer base itself, the site and the company seem more than capable of maintaining speed as an up and coming gold exchange to watch.
But, if one takes a step back, it is easy to see certain flaws in the system.
With a seeming misunderstanding of exactly how currency works, the sites owners and affiliates may have bitten off more than they can chew.
The long of the short of it, when it comes to money, take chances. “Measure twice, cut once” as they say.
And when it comes to currency, it’s better to have a dollar in your wallet than a gold nugget that may or may not be floating around in cyberspace. As long as you are financially responsible and have at least some sort of backup plan, the odds are using this site may not be so bad.
If you put all of your eggs in one basket, however, you may find that a snake has sneaked in to gobble your earnings.
When it comes to your money, you can never really play it TOO safe. So, in conclusion, yes, of course, if you have the dime to spare and an interest in online gold exchange, by all means, sign up and trade away. However, if you are using your last penny in hopes of striking rich, you’d be better off saving that penny.
Stay informed, and remember…never let a representation get in the way of the real thing.