As if finally being introduced to bitcoin wasn’t enough, along comes another entity called BitGold that many people mistakenly assume is the same as bitcoin. Actually, these are two totally separate entities and if you are an investor, understanding BitGold is imperative. So as not to get confused, following is a general rundown between the two and if you’d like further clarification, it might be worth your while to check out a BitGold review or two.
What Is Bitcoin?
Let’s start out with bitcoin because this is the ‘currency’ you have probably been hearing about for a couple years now. Bitcoin is nothing more than a mathematical algorithm that only exists in cyberspace. There is nothing backing these ‘coins’ except a mathematical formula in which there are only so many solutions that can ever be found. These answers can then be broken down into smaller bits (hence bit coin) to be used as smaller denominations of the bitcoin currency but again, they are only worth a perceived value. There is no tangible security backing the currency.
This is a very basic explanation but the key takeaway is that, for all intents and purposes, bitcoins don’t exist. They are simply a number upon which someone has assigned a value. Period. Only so many can be mined which supposedly increases the value once all those mathematical answers have been found in cyberspace and where they are hiding is anyone’s guess. Can you spend them anywhere and everywhere? Absolutely not! Unless a business is willing to jump on the bitcoin bandwagon, they have no ultimate value whatsoever. The concept of a digital currency is not new, but this is the first one to take effect thanks to the creator of bitcoins, Satoshi Nakamoto.
What Is BitGold?
The only thing BitGold has in common with bitcoins is the prefix ‘bit.’ BitGold is actual gold that can be purchased in small amounts. A person looking to invest in gold can purchase small amounts with no minimum purchased required. Common quantities are the 10gm gold cube and the 1kg gold bar. Whereas the gold cube is valued at slightly more than one-third the price of an ounce, a kg gold bar is equivalent to 2.2 pounds of gold. At roughly $1,250 per ounce under current market conditions, that is a sizeable investment but one that is not necessary to enter the BitGold market.
The concept of BitGold is to give anyone who wants to own gold an opportunity to begin buying small amounts. The creators of BitGold, Josh Crumb and Roy Sebag, envision a world in which the common person can find a way to purchase gold in affordable increments. A specific amount of gold has been purchased and is stored in Brinks vaults in five countries around the globe. When an investor becomes a BitGold member and buys a specific amount of gold, title of that gold is passed over to the investor but remains guarded and insured within the Brinks’ vault.
The Most Critical Difference between BitGold and Bitcoin
As was stated above, bitcoin is not a currency in the truest form but BitGold is. An honest BitGold review will indicate that the gold held in the vault for that investor can be ‘spent’ at any time. Any merchant or organisation that accepts Cirrus, Maestro or MasterCard logos will accept BitGold payment through the GoldMoney Prepaid MasterCard that is issued upon the first transaction. While there may have been a time when merchants and businesses of all kinds didn’t accept credit or debit cards, those days are long in the past. It would be a good idea to learn more about bitcoin before reading an honest BitGold review so that the difference between the two is readily apparent.
When you purchase BitGold you are purchasing 99.95% pure gold bullion. When you mine a bitcoin you are simply the finder of a solution to a mathematical problem. Yes, that solution has been assigned a ‘monetary’ value, but it isn’t real. It isn’t tangible like gold is. What’s the difference between BitGold vs. bitcoin? One you can spend anywhere and has real value, the other is only a mathematical calculation and relatively few businesses and merchants will accept bitcoin as payment. Maybe digital currency will become more widely accepted in the future, but today gold is still considered a solid currency. That’s the difference. BitGold is real and bitcoin is only as real as you perceive it to be.
from BitgoldReview.org http://www.bitgoldreview.org/bitgold-vs-bitcoin/