BitGold says it has now come out of private beta, its platform now publicly available. The startup aims to use the Bitcoin blockchain as means to transfer gold.
BitGold actually makes very little mention of Bitcoin, cryptocurrency or even the blockchain (the company’s announcement points out that “BitGold is …not a cryptocurrency like bitcoin.”) Rather, it’s all about the gold. A dedicated page on the precious metal discusses how oxygen eventually destroys most compounds, but gold “remains cost-proportional to all other basic resources over time.”
The startup earlier this year entered into a reverse merger deal with Loma Vista Capital Inc. that would see it publicly traded later this year. Among its several notable institutional investors, Sprott Asset Management invests heavily in alternative assets like gold. BitGold also secured $3.5 million in Series A funding from PowerOne Capital, Soros Brothers Investments, Sandstorm Gold and PortVesta Holdings.
The announcement emphasized the aim to “seamlessly use gold again as a store of value and medium for payments”, to be facilitated by its solution that took years of “careful planning and execution.”
The company’s offerings include: a gold brokerage (1% fee), insured gold storage (free), gold payments to other BitGold users (free), the ability to spend gold with a BitGold Mastercard (free), accept gold for payment (1% from BitGold users, 2% otherwise), and the ability to convert bitcoin to gold.
Holdings are said to insured by Lloyds of London against theft or loss.