A brand new trading platform that allows users to trade in bitcoin, physical gold and cash has been launched following a partnership agreement between the gold bullion dealer Amagi Metals and one of the leading Bitcoin-Gold platforms and holder of a number of precious metals DigitalTangible.
In an announcement from Amagi Metals the CEO said that their new service would help gold buyers around the world to achieve their financial goals with a combination of its bitcoin blockchain leverage service and its highly competitive premiums.
He went on to advise that with the help of DigitalTangible they would build on the demand for bitcoin as a way of cutting out the middle-man and by doing this would help customers preserve their wealth.
The way DigitalTangible works is by allowing customers to use their bitcoins to buy gold and through this transaction the customer receives digital tokens and a proof of custody, then their gold is put into storage. Users are then allowed to trade these tokens through the platform and when they are finished they are able to cash out what they have in their account and this is then converted into either gold that can be sent directly to them or into bitcoins that can be used just like any other bitcoin.
Users can buy the highest quality 99.99 percent gold bullion at a premium of just 1.87 percent over spot using the DigitalTangible platform. Users of the service also benefit from the fact that there are no requirements for a minimum purchase. This essentially means that investors who are looking to hold a more diverse portfolio can do so far more easily.
As well as getting rid of brokers, associated fees and middlemen when looking to trade in gold DigitalTangible has so far processed customer sales in gold and bitcoin to a value of $30 million. Users are currently being advised to look at this as an option if, rather than investing in alternative cryptocurrencies, they would like to invest their bitcoin funds in commodities. And with no contract signing, no need for escrow and no minimum or maximum transactions it looks to be one of the best services out there for bitcoin investors.
When it comes to gold-backed or gold cryptocurrencies, however, there are others on the market making similar claims. One such example is INNcoin which has been developed and launched by Newnote Financial Corp and claims that users can use their computer to mine for physical gold through the INNcoin.
Many investors are clearly going to be put off by the thought of having to trade real physical commodities like gold with intangible digital currencies like the bitcoin or other cryptocurrencies and there has already been a case where customers of Coinabul are claiming that they have never received their gold payments after cashing out and this has, in fact, led to a class action lawsuit being filed against the company.
That said, in order to allay fears and show that they do actually have the gold available to give to customers DigitalTangible are offering complete transparency of their service and are linking their gold assets to their customers using the blockchain ledger.
