Bitcoin users want more exchange opportunities. JM Bullion announced that it’s now possible to buy gold and silver with bitcoin on the BitPay platform. The firm now offers its customers the option to pay with the cryptocurrency.
According to the firm, accepting bitcoin provides flexibility to online customers. It’s now possible for cryptocurrency users to pay for precious metals with a bitcoin wallet. Paying in bitcoin might also protect customers against expensive credit card chargebacks and high card processing fees.
JM Bullion will now offer bitcoin users a four percent transaction discount. It offers the same discount to customers who pay for transactions in cash. The discount might help users to offset higher bid/offer spreads in the precious metals OTC market.
Cryptocurrency users have higher minimum purchase amounts than credit card customers but they’ll enjoy lower minimums than customers using bank transfer or paper check settlement options.
Historically, gold price tends to increase during periods of political and economic uncertainty. Gold price reached an all-time high in 2011. The price of gold has rallied in recent weeks.
Gold has been recognized as a global store of value for centuries. In comparison, bitcoin is a newer currency that is considered more volatile than gold or silver.
Like other commodities, gold is quoted in USD. Most financial analysts view gold as a currency and, like other currencies, gold trades against fiat currencies of the world. History shows that the USD has a tendency to decline as gold prices rise. Currency traders and investors want to take advantage of these fluctuations.
Although gold forex traders know that gold and other precious metals rates are volatile, price fluctuations in precious metals may be less concerning to buyers with long-term capital appreciation objectives. Short-term gold forex trades take advantage of a wider breadth of dynamic price fluctuations that reflect world economy, currency changes, market sentiment, central bank activity, and other events.
The ability to buy gold and silver with bitcoin is a positive step for traders and investors.
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Last modified: May 21, 2020 10:32 AM UTC