Between A Cryptocurrency And A Block Of Gold, You Have BitGold

The volatile fluctuations in value of cryptocurrencies like bitcoin have presented a major obstacle for the currency's adoption, however the technology that powers digital currencies has been touted as a major advance in technology. Now, BitGold Inc. is hoping to use that technology to power a platform to buy and sell gold.

On Tuesday, BitGold put out a

outlining its plans to modernize the yellow metal by allowing users to quickly and easily trade in gold without an intermediary party. BitGold's Co-founder and CEO Roy Sebag said the platform has been designed to broaden access to gold and believes investors will take an interest as the commodity holds its value over time.

The platform works by taking a customer's deposit and converting that sum into its corresponding weight in gold. The company has a patent-pending locational-gold exchange and vault management system which allows customers to access their gold and make transactions in real-time from anywhere in the world. BitGold will also allow users to select where in the world they want their gold physically stored.

A BitGold account is fully insured and boasts no setup or storage fees. The company also promises that customers can spend their gold via debit cards or electronic payment processors. The company is not a bank so customers won't lose their deposits, and it isn't a cryptocurrency so wild swings in value shouldn't be an issue. Instead, account holders can store their money as gold, hoping for a steady increase in value. When they are ready, they can convert the commodity back into money by making a purchase.