Goldmoney Investors, do you classify BTGDF/XAU as a gold equity, or as a Fintech?

Goldmoney is a hybrid of financial technology, and a gold related equity. How do we classify this in our portfolios? Bitgold does not own our gold, so can we consider it a gold equity? However, as the gold price increases, interest in Bitgold should increase as well leading to more users sign ups, more deposits, and more transactions (KPIs). Indirectly it is connected to the gold price however the growth is possible without a link to the gold performance. How do we classify this to avoid over/under exposure.

Comments

  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    Hi @ArtMatters Towards my understanding, I think as for Accounting aspect, Gold is commodity and is govern under asset and equity.
    But as for terminology or linguistic purpose, I think either gold equity or as Fintech, can be applied to both. B)
  • GrandpaBrianGrandpaBrian Posts: 679 Silver ✭✭✭✭
    I find it helpful to ask "what causes the value of GoldMoney to increase?". And the answer I find most logical is the ongoing technological innovation that the employees bring to the platform. If that is so, then this is a FinTech company.

    Of course gold plays a big role too and an increasing gold price is like a rising tide that lifts all ships.

    So if gold has entered a new bull market, and the staff keep coming up with new and useful improvements, the next few years should be very rewarding for all concerned.
  • GoldmattersGoldmatters Posts: 3,926 Admin
    @GrandpaBrian I agree. So a Fintech with a gold kicker?
  • GoldIsCurrencyGoldIsCurrency Posts: 1,781 Gold ✭✭✭✭✭
    edited April 2016
    @ArtMatters I agree with @GrandpaBrian that this is a Fintech company. That brings me to a point I have been thinking of since that recent Bloomberg interview where the hosts asked Roy why buy shares of BitGold and compared it to the performance of buying shares of Barrick Gold. OMG I thought the hosts are rather clueless as to what this company actually represents. It would be the same as comparing Barrick Gold to Maple Leaf Foods, yup they are both companies and have about as much in common. Apples to Oranges.
  • GoldmattersGoldmatters Posts: 3,926 Admin
    @BigD agreed. You can tell sometimes @Roy Sebag get slightly annoyed by the misconceptions about what Bitgold is and is not. It's clear the hosts often don't understand bitgold
  • GoldIsCurrencyGoldIsCurrency Posts: 1,781 Gold ✭✭✭✭✭
    @ArtMatters It is like the host that interviewed Darrell not long ago. She was in the same boat with her lack of knowledge of gold and her overall closed mindset.

    I have personally found the "BigMac" example from that Back to the Future comparison they did some time ago has been one of the best ways to get someone to understand how gold holds value and currency devalues.

    The price of a BigMac from 1985 to 2015 measured in "fiat currency" the price went up 299%, basically three times the price. However when you look at the price of that BigMac measured in "grams of gold" from 1985 till 2015 that BigMac actually got CHEAPER! That wakes a few people up into understanding the store of value that gold holds.

  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @ArtMatters

    @Roy Sebag and @Josh Crumb certainly consider it FinTech. Who am I to disagree. B)
  • GoldmattersGoldmatters Posts: 3,926 Admin
    @BigD @79Au197 Yes that makes a lot of sense. There is no way know to better preserve purchasing power. Just ask Marty Mcfly. Fintech seems to be the consensus. I'll take it :)
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