Bitcoin has been pitched as, and has the potential to be a lot of things: a global crypto currency; a store of value; and digital gold.
However, as one of the world’s most prominent precious metal-focused investment firms drops crypto as a whole, Bitcoin’s positioning as digital gold may be in trouble.
Goldmoney Drops Crypto, Harming the Bitcoin As Digital Gold Narrative:
Goldmoney, which claims to be the “global leader in precious metal custody,” and “the world’s most trusted name in precious metals,” has “decided to exit the cryptocurrency business.” The firm offers its customers the ability to buy and store previous metals such as silver, gold, platinum, and palladium.
The George Soros-backed Goldmoney began offering the direct purchase of cryptocurrencies on its platform back in November 2017 right as Bitcoin made its meteoric ascent to its all-time high of $20,000. The firm cited the “overwhelming success” it saw buy allowing its customers to purchase precious metals with crypto as reason for adding the option to purchase crypto directly through Goldmoney.
Starting this past week, crypto purchases are no longer available to Goldmoney’s clients. Customers who use Goldmoney for custody of crypto assets will be required to either liquidate their position or “request that their cryptocurrency be delivered to their wallet.”
The Goldmoney Board of Directors reportedly made the decision after a review of “several factors.” Those factors likely include waning interest in cryptocurrencies as the decline in cryptocurrencies deepens during the ongoing bear market.
Goldmoney says that by exiting the crypto business, they can “focus on new growth initiatives within the precious metal industry.”