BitPay calls themselves the world leader in blockchain payment technology. Recently they have been encouraging transactions in Bitcoin for purchasing gold and silver from leading precious metals trading platform Onegold and even acts as an asset manager with its BitPay Online Wallet. This transaction option was made available after deliberations and successful exploration of a partnership between BitPay and APMEX, when the latter offered 4% discount for gold and silver purchased using either Bitcoin or Bitcoin Cash. The move to adopt cryptocurrency, according to Onegold CEO, Ken Lewis is that there were issues with using credit cards for bitcoin payment.
Credit card issues drive OneGold to BitPay
Ken Lewis said that as an online platform which allowed traders to buy and sell gold they recognized the innate advantages that bitcoin as a form of payment offered both for the traders as well as the platform itself.
Besides, the issues in relation to credit cards were compounding by the day, resulting in a more frustrating experience for all stakeholders. Another major obstacle for OneGold was the frauds that were increasing with the use of these payment cards. Repeatedly, OneGold was at the receiving end of such frauds as they had to bear the costs of such illegal trade after the sale was completed. The high costs of maintenance – costs and charges are a disadvantage for the firm, according to Lewis.
This is exactly the usefulness of cryptocurrencies such as Bitcoin and Bitcoin Cash were found to be an advantage.
Thirdly, the online platform suggests that the adoption of bitcoin or bitcoin cash allows its use in all types of markets, including plausible markets. Hence Onegold is now able to transact with transparency and openness anywhere in the world.
Advantages at BitPay
BitPay has a feature called as prepaid BitPay credit card which is backed by Metropolitan Commercial Bank and explores the conversion of digital assets into dollars. For Onegold the advantage is that they are able to use digital assets which are backed by the precious metal and is hence able to gain a competitive advantage over peers who are typically dealing with these “using paper-backed assets.”
Thus BitPay its proprietary services are able to support the expansion of bitcoin and bitcoin cash transactions for valuable assets such as gold and silver and thereby promote mass adoption of this non-fiat. The use of commercial banking services such as Metropolitan Commercial Bank which allow conversion of digital assets into dollars is also an added dimension for the likes of Onegold, BitPay, and Metropolitan.