Why storage fees for bitcoin?

I can understand for metals that Goldmoney need to charge, to cover the cost of fees.

But bitcoin? All you're storing is a wallet address in a database? I think this is unfair and I'd like to see his charge dropped.

Why do you charge storage fees?

This puts me off using Goldmoney as I can easily buy bitcoin elsewhere without incurring holding fees and still get high security.

Answers

  • GoldIsCurrencyGoldIsCurrency Posts: 1,770 Gold ✭✭✭✭✭
    edited January 21
    Everywhere else you buy bitcoin from you have to store in a wallet which is hackable, not secure. Goldmoney is offering secure storage, that is the difference.

    Secure and Protected Bitcoin Storage
    Utilizing offline, password-protected hardware wallets stored in a physically secure and professionally managed environment ensures a level of trust and security that only Goldmoney can offer.

    Industry-Leading Secure ‘Cold’ Storage
    Our deep knowledge of cryptocurrencies along with our established and unmatched relationships with some of the world’s leading vault providers mean that we can provide you second-to-none security. Goldmoney stores and secures our client-held cryptocurrencies in what is known as offline “cold-storage”, with private keys stored in a password-protected hardware wallet, which is stored securely with one of our professional vaulting partner. This is a powerful and innovative way to secure bitcoin, virtually eliminating our vulnerabilities to hackers and attacks commonly faced by cryptocurrency exchanges.

    https://www.goldmoney.com/holding-cryptocurrencies
  • paddy10tellyspaddy10tellys Posts: 244 Bronze ✭✭✭
    @GoldIsCurrency some questions: Who is the professional vaulting partner you refer to? Are the deposits insured? Who does the audits?

    Compare & contrast your service to say - using a Trezor ... so little folk (me) understand your offer ...
  • GoldIsCurrencyGoldIsCurrency Posts: 1,770 Gold ✭✭✭✭✭
    @paddy10tellys I don't work for Goldmoney so those questions would be better answered by someone that does. My presumptuous understanding is the vaulting partner is Brinks, KPMG would be the auditor and I would expect the deposit to be insured as Goldmoney is responsible for safeguarding the assets.

    Can you please confirm the above @MaxLamb ?
  • paddy10tellyspaddy10tellys Posts: 244 Bronze ✭✭✭
    @GoldIsCurrency Thx for your reply. I always thought you were an alias for Josh, or one of the others, posting incognito. Silly me!
  • DuggoDuggo Posts: 1 Tin ✭
    Why are the storage fees for Bitcoin so high? They should be lower than Gold.
  • merida2012merida2012 Posts: 5 Tin ✭
    If i deposit my crypto into goldmoney for "safety" reason than cold storage myself isn't that the same as depositing cash into a bank? the reason cryptos exist is bcos it's decentralised nature of money. why would anyone give their cryptos to a 3rd party for safe keeping & being charge a fee? gold is different cos it's in physical form & also different country tax reason that i understand.

    if i buy gold using cryptos i can't spend it using my debit card? can i redeem my gold by posting physical gold to my address?
  • veraxverax Posts: 9 Tin ✭
    Fee based cold storage makes sense for large individual and institutional holders, especially those subject to various regulations regarding fiduciary status. Having said that, I believe it would be wise to consider a free hot storage option for retail. This could provide a wide open avenue for new client onboarding and GM's evolution as a full service fintech company.
  • RocketDogRocketDog Posts: 598 Silver ✭✭✭✭
    Financial institutions incur overhead expenses in maintaining compliance to Bank Security Act/Anti Money Laundering regulations for all customers, large or small. Further, Goldmoney needs to make money on the services it offers. The cold storage Bitcoin that they offer cannot be spent. All you can do is hold it in your account -- and possibly make or lose lots of money on it. So I can see why they would charge a storage fee. As a shareholder, I can say that I am glad they are charging you fees. :wink:
  • CampeadorCampeador Posts: 207 Bronze ✭✭✭
    Why even store Cryptos? They are supposed to by pass the whole Banking & Storage BS. I say, the owner should store its own and be responsible for them.
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