Precious Metals Firm Drops Crypto: Is the Bitcoin Digital Gold Narrative In Trouble?

Bitcoin has been pitched as, and has the potential to be a lot of things: a global crypto currency; a store of value; and digital gold.

However, as one of the worlds most prominent precious metal-focused investment firms drops crypto as a whole, Bitcoins positioning as digital gold may be in trouble.


Goldmoney Drops Crypto, Harming the Bitcoin As Digital Gold Narrative

Goldmoney, which claims to be the global leader in precious metal custody, and the worlds most trusted name in precious metals, has decided to exit the cryptocurrency business. The firm offers its customers the ability to buy and store previous metals such as silver, gold, platinum, and palladium.

The George Soros-backed Goldmoney began offering the direct purchase of cryptocurrencies on its platform back in November 2017 right as Bitcoin made its meteoric ascent to its all-time high of $20,000. The firm cited the overwhelming success it saw buy allowing its customers to purchase precious metals with crypto as reason for adding the option to purchase crypto directly through Goldmoney.

Related Reading | Poll Reveals Majority of Crypto Investors See Bitcoin Price at $100,000 to Millions Long-Term

Starting this past week, crypto purchases are no longer available to Goldmoneys clients. Customers who use Goldmoney for custody of crypto assets will be required to either liquidate their position or request that their cryptocurrency be delivered to their wallet.

The Goldmoney Board of Directors reportedly made the decision after a review of several factors. Those factors likely include waning interest in cryptocurrencies as the decline in cryptocurrencies deepens during the ongoing bear market.

Goldmoney says that by exiting the crypto business, they can focus on new growth initiatives within the precious metal industry.


Can Bitcoin Ever Become Digital Gold?

While its not clear where the Bitcoin as digital gold moniker originated from, it was popularized following Nathaniel Poppers book on Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money.

Since then, the digital gold narrative tied in closely to Bitcoins store of value narrative. Gold is often considered among the first ever stores of value, and is often looked to as a hedge to maintain value during times of economic distress.

Bitcoin, should it ever become a stable asset in terms of price volatility, could some day become a reasonable store of value, similar to precious metals like gold. However, given the fact that Bitcoin has fallen over 85% from its previous all-time high, it is increasingly difficult to call it a store of value when its value has regularly plummeted since.

Related Reading | Lightning Dev Explains Why Bitcoin Is Poised To Become the Global Currency

The decline in Bitcoins price and waning interest in the market following the crypto bubble pop has even caused precious metal firms such as Goldmoney, to not only ditch crypto, but the store of value narrative altogether.


However, should Bitcoin continue to follow its logarithmic growth curve, relative volatility should decrease and the leading crypto by market caps value should one-day stabilize, restoring the store of value and digital gold concept. Until then, though, Bitcoin will shine as a speculative asset and a decentralized global currency it doesnt need a comparison to such archaic asset classes to survive or even thrive.


Images from Shutterstock

The post Precious Metals Firm Drops Crypto: Is the Bitcoin Digital Gold Narrative In Trouble? appeared first on NewsBTC.

09.03.2019 / 05:20 46
Gold Demand Rising: Investors Turn to Precious Metal as Safe Haven Asset Gold Demand Rising: Investors Turn to
Recent global economic concerns and stock market volatility seem to have increased demand for gold as a safe haven asset. The price of the precious
Bullion Giant APMEX Partners with BitPay to Let Investors Buy Gold with Bitcoin Bullion Giant APMEX Partners with
Global crypto payment provider BitPay has announced the OneGold precious metals and digital gold marketplace is now accepting Bitcoin and Bitcoin
Crypto Traders Can Invest in Precious Metals Like Gold, Possibly on Exchanges Crypto Traders Can Invest in Precious
A Swiss-based asset management firm, Tiberius Group AG, is introducing a new product to the crypto markets: metal backed tokens. The new product will
Will Bitcoin Ever Replace Gold as a Store of Value Will Bitcoin Ever Replace Gold as a
Can Bitcoin ever match or even replace gold as a safe haven from fluctuating fiat currency and unstable stock and bonds markets? Some experts see a
Ripples Tech To Be Used In Physical Trading Of Metals Ripples Tech To Be Used In Physical
Ripple, a cryptocurrency currently ranked as 3rd most valuable coin with a market cap of $20 billion, is trying to do everything to be the best
Gold Trading Giant Goldmoney Enables Cold Storage For Two More Cryptocurrencies Gold Trading Giant Goldmoney Enables
Goldmoney, a global gold-based financial services company, expands its crypto cold storage with two more cryptocurrencies. Goldmoney, the world's
Comments (0)
Add a comment
Comment on