The EU-based Bitcoin exchange Bitstamp now allows customers to withdrawal funds in Gold. They recently released this information in a webpage news update. if someone has a Bitstamp account, instead of exchanging Bitcoin for Fiat currency and vice versa, they can request to purchase gold with their available funds. However, the company has not integrated Bitcoin functionality, so gold can only be quoted and exchanged for USD. But according to to their site, they intend add a Bitcoin-for-gold option soon.
Also read: Silk Road Moderator Faces Extradition to the US
Bitstamp’s page summarized their ordering criteria:
“Gold prices are quoted in USD and updated every 5 minutes. At the moment, purchase is only available with USD. Before submitting an order, USD balance must be available. To initiate an order go to withdrawal section and click Gold.”
Bitstamp partnered with European company Moro Kunst d.o.o in order to bring this precious metal to their customer base. Moro Kunst d.o.o is a well-respected and widely known European bullion dealer. Their website says they have markets all across Europe, including Germany, Austria, Switzerland, Croatia, and elsewhere. They also have a relationship with the World Gold Council so that they can maintain gold trade worldwide.
The partnership between the companies seems well-timed and apt.
The idea of being able to trade Bitcoin for gold is apt because most crypto-enthusiasts and free market advocates enjoy having competing currencies. They love having a choice between monies of different value, regardless if they are in the physical or digital realm. This might also create an opportunity for skeptical individuals to enjoy alternate currencies.
As more crypto-exchange and bullion partnerships emerge, they may help convince “gold bugs” to get involved in cryptocurrency. There are still many precious metal enthusiasts and Austrian School individuals that have not realized the power and utility of Bitcoin. And with the rise of cross-transferable exchanges like Bitstamp, people may see competing markets grow and develop as gold bugs begin adopting and using more Bitcoin.
This is especially timely news for Bitstamp because they also announced that they would be accepting major credit and debit cards. Their page mentioned taking Mastercard and Visa, which is important so that transitioning into accepting various currencies happens as quickly and smoothly as possible. This puts them on par with American companies like Amagi Metals, who is a bullion dealer that currently accepts Bitcoin for trade; although it is not an exchange like Bitstamp.
In the long term, perhaps Bitstamp will spearhead a market for stronger competition between gold and cryptocurrency, as well as more Bitcoin adoption — leading to many more market options for multi-currency exchanges.
What do you think about this new service from Bitstamp? Let us know in the comments below!
Images courtesy of ihb.io