In a surprise announcement made earlier today, Amagi Metals has revealed their plans to trade “exclusively in cryptocurrencies like Bitcoin.” Amagi Metals is an American based precious metal dealer that specializes in providing precious metals, which they view as superior money, to an international market through the technological advancement now known as eCommerce. Since 2012, the company has taken a strong, supportive stance of Bitcoin and has promoted its use well beyond just accepting it on their website. In a commendable continuation of this mission, Amagi Metals has taken the first step towards being a company that handles only Bitcoin, which has distinctive advantages and disadvantages. Amagi Metals has promised to stop accepting US dollars or other fiat currencies and to only accept cryptocurrencies. The never-before-seen business plan will be implemented by the end of 2016, over two years away.
Since 2012, when Amagi Metals first started accepting Bitcoin, the percentage of Amagi Metal’s sales that are executed in the cryptocurrency has risen from 0% to over 40%. Many precious metal firms also accept Bitcoin, but few have embraced it like Amagi has. By 2017, Amagi Metals will raise the aforementioned metric all the way to 100%. The vast majority of Bitcoin supporters, Amagi Metals included, recognize that Bitcoin will not have replaced the fiat system around the world by the year 2017; as such, Amagi Metals still plans to offer its services to customers with fiat currencies. However, Amagi Metals will be receiving Bitcoin for these onerous transactions:
“We will offer customers the ability to convert their fiat money to cryptocurrency on our website. They can then use it for purchases from us. Of course, that will be at the exchange rate at the time, whatever it may be.”
Since 2010, Amagi Metals’ CEO, Stephen Macaskill, has advocated a “sound money” philosophy to all of his customers. Since the official decoupling of the US dollar from gold in 1971, USD has lost 97% of its “value” compared to gold. More importantly, the basic domestic purchasing power of the USD has lost 83% compared to gold in the last several decades. Amagi Metals, and many other cryptocurrency supporters, are of the mindset that this trend will not stop as long as centralized money creation is abused. From the paradigm of this announcement’s supporters, the advent of Bitcoin and the landslide effect of cryptocurrencies will end up expediting the fall of the fiat regime.
In Amagi Metal’s announcement posted to their website, Macaskill explained:
“We want to be a leader in the sound money movement. With the adoption of cryptocurrencies increasing every day, their viability is virtually assured. History shows that paper currency, backed by nothing of value, will ultimately fail. It’s only a matter of time until no one will be accepting the dollar. By trading exclusively in cryptocurrencies, we’ll still be in business when that time comes.”
Amagi Metals still has over two years to work out the specifics as to their grandiose plan. The company will undoubtedly be searching for a Bitcoin processing service to partner with, since it is doubtful that they would open their own exchange and tackle the associated regulatory hassle. There are many unanswered questions to Amagi Metals’ plan: Will profits be held in gold, then? Will they use a service that takes fiat and pays out BTC, such as CoinVoice or BitPagos (Think reverse BitPay)?
Abandoning fiat currencies entirely has never before been possible for any sane company. Amagi Metals is the first but they most certainly won’t be the last.
As announced in the Bitcoin subreddit, Amagi Metals CEO will host an AMA on Reddit next week.
Featured image from Shutterstock.
Last modified (UTC): August 21, 2014 08:19