BitGold Rebrands to Name of Subsidiary, GoldMoney

BitGold has taken on the name of its recently acquired subsidiary, UK-based GoldMoney.

BitGold seeks to use the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term to make gold more easily transactable, offering clients the ability to buy/sell gold, spend it and accept it for payment.

The startup acquired GoldMoney for CAD $51.9 million ($42 million) two months ago. GoldMoney is one of the largest precious metals storage firms in the UK, stating to hold $1.2 billion worth of precious metals on behalf of clients.

At the time, the massive acquisition seemed odd for a startup, which itself only launched its service a few weeks earlier. Shares in BitGold went public about a week after the platform went live.

It was assessed that the acquisition of GoldMoney was likely an essential part of its growth strategy from the outset. The acquisition of a large, established player was possibly the raison d'être for early investors to pump assets into the startup. GoldMoney has a large client base already generating millions in annual profit, while BitGold brings its technology and a robust platform to the table.

Furthermore, it is possible that part of the strategy all along was to bring GoldMoney into the publicly traded sphere. In January, BitGold entered into a reverse merger agreement with Loma Vista Capital Inc, a publicly traded shell company previously engaged in mineral exploration. At the time, BitGold was still in private beta mode.

The rebranding may thus be the final touches on these plans. It is also noteworthy in emphasizing BitGold's ambition to brand itself based on gold and less on Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term. The startup's website, like many in the gold industry, goes to great lengths lauding gold's properties and making the case for its economic value. But there is practically no mention of Bitcoin or the underlying blockchain technology.

Shares of the startup will continue to be traded under the symbol XAU on the TSX Venture Exchange. The shares are currently trading at $5.50, making for a market capitalization of $201 million. Some have alleged that the company's shares are grossly overpriced relative to its current ability to generate earnings, but this may change with GoldMoney in the picture.

The latest move happens to come at a time of gold prices falling to their lowest levels in over five years, and gold bears openly questioning the metal’s true potential as a store of value.