SpectroCoin is one of the lesser known Bitcoin exchange platforms in the world, but that does not mean they are resting on their laurels. In a recent blog post, the company announced how users can now buy and sell gold with Bitcoin on the exchange platform.
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There are a handful of exchanges which offer the trade of both gold and Bitcoin on their platform. Vaultoro is perhaps the most prominent one, followed by Uphold. But that list has now gotten a bit longer, as SpectroCoin offers the trading of gold and Bitcoin as of today. No one expected this announcement, as the company remains tightlipped about any changes or new features coming shortly.
However, there are some questions regarding this feature, as the company blog makes no mention of where the gold is coming from, or who is storing it. This conversion process does not seem to be part of peer-to-peer exchange opportunities, as users can just convert their Bitcoin balance to gold – and vice versa – through their account page.
Moreover, there does not seem to be a limit as to how much gold one can own at any given time, other than their total Bitcoin balance. It appears as if SpectroCoin is offering their internal gold reserves to platform users in exchange for Bitcoin, which is a very odd business decision. The lack of transparency could hurt this business model as one can not just modify balances and claim people effectively own gold.
Although there are some serious questions which need to be answered regarding this service, it is positive to see SpectroCoin thinking along the right lines. Bringing more functionality to a Bitcoin exchange platform is always a good thing, and the company has been expanding their services in recent months. For example, they have issued their own debit cards not too long ago, and mobile applications are available on both iOS and Android.
All in all, it is interesting to see this relatively unknown Bitcoin exchange venture into the world of precious metals. However, without providing any insights as to where the gold comes from, or how they plan to prove digital ownership, things are looking a bit dicey for the time being. We have reached out to SpectroCoin for more clarification regarding this new feature.
Source; SpectroCoin
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