Bitgold to Follow Bitcoins Footsteps

With so many people turning to the internet to allow them to make purchases, sell services and conduct businesses, the idea of digital currency or money – internet based mediums of exchange is starting to be an appealing concept.

Bitcoins and bitgold are the first examples of digital money known as crypto-currency, an alternative currency which uses cryptography to secure transactions and control creation.
Bitcoins were developed in 2009 by Satoshi Nakamoto. As of August of 2013, the value of all bitcoins in circulation exceeded $1.5 billion.

You can think of bitcoins as cash for the internet. You can earn and keep bitcoins in a bitcoin wallet which you can access via a mobile app or through a computer. You can use them to pay for transactions online.

One major advantage of bitcoins is it allows for the payment and receipt of money anywhere and anytime. Many people and businesses are starting to favour this digital currency as it allows for quick and easy international transactions.

Bitcoins can be created and earned through bitcoin mining. Bitcoin mining awards bitcoins to users as a reward for allowing their computers to be used to run verification processes to validate Bitcoin transactions. You can also earn bitcoins by offering an online good or service that accepts bitcoins as payment. Bitcoins can also be bought via bitcoins exchanges or through websites that facilitate the buying and selling of bitcoins.

Bitgold is based on the bitcoin concept. Bitgold is being offered by bitcoin exchange companies as a new form of crypto currency.
Bitgold is a digital currency that is linked to or backed by gold. Bitgold can still be used for online transactions the same way bitcoin can but at the same time it can also be used to store wealth as the bitgold has an equivalent value in real gold.

As one company that deals in bitgold, Bitreserve explains, those who use their exchange can hold their bitcoin as a stable gold value and spend it anywhere bitcoins are accepted. Bitreserve members can convert their bitcoins to bitgold, whose value will be substantiated by bullion in their reserve. They can then spend this in any transaction that accepts bitcoins.

Another company that deals in bitgold is the Canadian digital currency startup, BitGold. BitGold aims to provide global access to gold for secure savings and transactions. BitGold will allow its users to use gold as a core saving amount which they can then use as digital currency allowing them to conduct transactions online.

Newnote Financial Corp and Anthem Vault Inc. also offer gold-backed digital currency, what their calling the MGC or Micro Gold Coin. The MGC is an open source crypto currency similar to the bitcoin and can be used as such, but it is considered bitgold because each MCG is backed by 100 grams of gold that are stored at Anthem Vault, giving them a base value that ordinary bitcoins do not.

With their ability to be a tangible source of wealth as well as a digital currency, bitgold intends to not just be a valid medium of exchange but also an appealing investment to those interested in the burgeoning digital currency market.