SchiffGold Now Accepts Ethereum Cryptocurrency
SchiffGold can now accept the Ethereum cryptocurrency as a method of payment for gold and silver. This is great news for investors looking to diversify their cryptocurrency portfolio with precious metals.
For details on how to buy gold or silver using bitcoin, bitcoin cash or Ethereum, click HERE.
At SchiffGold, we strive to stay on the cutting edge of technology and provide the highest level of convenience for our customers. We were the first major gold dealer to accept bitcoin payments back in 2014.
SchiffGold uses the BitPay platform to securely facilitate the purchase of gold and silver with bitcoin and bitcoin cash. BitPay announced it would support payments from the Ethereum blockchain last month. According to the company’s website, the BitPay decided to expand and support Ethereum for three reasons.
First and foremost, many of our merchants, cardholders, and wallet users have been asking for this. Second, Ethereum has the second highest market share behind Bitcoin. Third, by supporting payments on the Ethereum network, BitPay will be soon able to support ERC-20 tokens, namely, stablecoins.”
To be clear, SchiffGold does not hold cryptocurrencies. The BitPay platform instantly converts your bitcoin or Ethereum to dollars and then transfers the funds to SchiffGold.
The Ethereum blockchain was launched in 2015. The Ethereum website provides the following overview.
Like other blockchains, Ethereum has a native cryptocurrency called Ether (ETH). ETH is digital money. If you’ve heard of Bitcoin, ETH has many of the same features. It is purely digital, and can be sent to anyone anywhere in the world instantly. The supply of ETH isn’t controlled by any government or company – it is decentralized, and it is scarce. People all over the world use ETH to make payments, as a store of value, or as collateral. But unlike other blockchains, Ethereum can do much more. Ethereum is programmable, which means that developers can use it to build new kinds of applications.”
Some have touted bitcoin and other cryptocurrencies as a replacement for gold. Last spring, an advertisement produced by a digital currency asset company titled “Drop Gold” created some waves on social media. The ad encourages investors to drop gold from their portfolios and replace it with digital currencies such as bitcoin. “In a digital world, gold shouldn’t weigh down your portfolio,” the ad proclaims.
But are bitcoin and other cryptos really a replacement for gold? While the Drop Gold ad may seem clever and cute, cryptocurrencies aren’t a replacement for gold for many reasons.
Gold
- is less volatile
- has a more liquid market
- trades in an established regulatory framework
- has a well-understood role in an investment portfolio
- has little overlap with cryptocurrencies on many sources of demand and supply
- is a safe-haven investment.
So, while bitcoin and other cryptos may have some appeal for some investors, it is clearly not a replacement for precious metals. Diversifying your cryptocurrency portfolio with precious metals can help mitigate some of the downsides and put you in an overall stronger financial position.
Just consider the old adage – you don’t want to put all of your eggs in one basket.
