Bitgold & Bitcoin

breakbreak Posts: 2 Tin ✭
Correct me if I'm wrong, but at the time I find the support of Bitcoin by BitGold quite disappointing. If I understand things correctly, deposits made in Bitcoin are stuck in Dubai with only one way out: a bank wire to your bank account.
- You cannot redeem physical gold.
- You cannot "transfer" physical gold to another vault.
- You cannot load your prepaid Mastercard.
- You cannot buy bitcoins back.

If I want to convert an amount of Bitcoins into fiat in my bank account, Bitcoins exchanges exist for this purpose. I see absolutely no point in paying 1% fee to buy gold with it, then another 1% fee (+ .5GAU fee in my case, EURO SEPA wire) to sell it and have the money transferred to my bank account.

Therefore, the only reason I can see right now to credit a BitGold account via bitcoins is to "secure" a certain amount of crypto currency in gold, with the plan to convert it later to fiat (if I wanted it now, I'd go with an exchange). That's definitely a use case, but it's quite limited IMO.

I guess the all "locked in Dubai" situation is either due to regulatory or practical constraints. Can anyone from BitGold be a little more explicit about what is currently preventing you to transfer physical gold bought by users (and now their property, that's the all point) from Dubaï to another vault or to be redeemed physically? Are such features planned? If so, do you have a roadmap for it?

Multiple websites are selling precious metal in bitcoins. I've already used some but I really wait for BitGold to fully support it. The multiple vault locations is a real killer feature. As a European, gold delivery from the US comes with a prohibitive cost. With BitGold, I could just buy gold in London or Zurich vault and redeem it without paying too much in delivery fees. Or at least having it stored in a bit closer than in another continent.

Furthermore, trust is of the essence when handling large amounts of money, and I can't think of a service or company in Europe currently selling gold in bitcoins that I would trust with 5 figures amounts. I would definitely consider BitGold if the service was fully available.
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Comments

  • UvasUvas Posts: 680 Silver ✭✭✭✭
    I am not from Bitgold, but I imagine the constraints put on bitcoin use is to protect Bitgold and its users from possible fraud and money laundering.

    Bitcoin is a crypto-currency after all, created pretty much explicitly to avoid government and banking regulations.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @break

    Your questions and concerns have been the subject of many discussions on the board :)

    See http://community.bitgold.com/search?Search=Bitcoin

    You can redeem physical gold.

    @melanie has answered this question several times in the past. Dubai is the only vault that accepts BitCoin. From the Dubai vault you can redeem to your bank via Wire or ACH. You can redeem to physical gold. The reason for the restriction has to to do with Know Your Customer and Anti Money Laundering regulations.

  • breakbreak Posts: 2 Tin ✭
    Thanks @79Au197, I did researched the forum for bitcoin related discussions but still managed to miss that you could redeem physical gold from Dubai. That's the point that was mainly bothering me.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @break however, the best prices for shipment of physical gold are to the United States because that is the shipping point for Dillion Gage.
  • dubhedubhe Posts: 1 Tin ✭
    I redeemed silver and gold from Dubai using BTC
  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    Hope Dubai vault location will be scrutinized and upgraded at par with other Brinks vault location worldwide.

    Suppose a member of BitGold has fully submitted their personal identification for screening and approved, I don't see the practical on "the reason for the restriction has to to do with Know Your Customer and Anti Money Laundering regulations" anymore.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @rohanibuang61

    Hope Dubai vault location will be scrutinized and upgraded at par with other Brinks vault location worldwide.

    Suppose a member of BitGold has fully submitted their personal identification for screening and approved, I don't see the practical on "the reason for the restriction has to to do with Know Your Customer and Anti Money Laundering regulations" anymore.

    Good point!

  • GoldenAyeGoldenAye Posts: 2 Tin ✭
    Yes, excellent point!

    KYC/AML regulations can be addressed and overcome, they have been by myriad other companies in financial services.

    Gold and Bitcoin both have a bright future. If Bitgold doesn't seize the opportunity to trade/exchange one for the other (and fiat) seamlessly and easily, another company will come along and be the first mover in the space.

    Probably soon.
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