“I wouldn’t call Bitcoin digital gold” – Interview with Vaultoro founder

Bitcoin is now more and more often referred to as digital gold and serves many investors as an investment alternative to precious metals. Both goods are limited and, in contrast to fiat currencies, which can be “printed” at will, promise inflation protection and risk hedging. The siblings Joshua and Philip Scigala have taken this as an opportunity to create an intersection between the two assets with their company Vaultoro. Since 2011, Vaultoro has served as a stock exchange specialising in trading gold and Bitcoin. We met the siblings in their Berlin office to discuss the relationship between Gold and Bitcoin.

Explain your Bitcoin news and why you founded Vaultoro?

We developed Vaultoro because we were looking for a solution to convert Bitcoin news into a bank-independent, stable value: https://www.onlinebetrug.net/en/bitcoin-news-trader/. When Mt. Gox collapsed, not only did many people lose their Bitcoin, but millions of Euros were simply frozen. We wanted to develop a solution where the customer is simply safe.

Through our partner Pro Aurum Switzerland you can now trade real physical gold on our platform, which is completely owned by the customer after purchase.

In your opinion, does it make any sense to compare Bitcoin and gold with each other, or even to call Bitcoin digital gold?

I wouldn’t call Bitcoin digital gold, the crypto currency is much too volatile for that. The only thing that connects gold and Bitcoin is scarcity. It remains to be seen whether Bitcoin will become an investment in the long run. I believe that Bitcoin will, once a few scaling problems have been solved, assert itself as a payment network and not as an investment, with other crypto currencies leading the way and quickly asserting themselves as competitors.

How do you rate the correlation between the Bitcoin and the gold price?

Is there even one or is the correlation just a misunderstanding? The price of gold is based on several economic factors and usually runs parallel to the economic situation in the world. However, many people buy gold when things don’t run so smoothly on the stock markets. Gold is still seen as a hedge against loss of value. In the event of a crash, anyone who owns gold is well served when the economy recovers. Bitcoin has similar buying spurts, but the market is still too small for that. The Bitcoin price usually reacts at short notice to news from Korea or China.

Many crypto exchanges have become victims of hacker attacks in the past. How do you ensure that the deposits are kept safe?

We store the Bitcoin of our customers with various multi-signature Bitcoin Wallets and so-called “Cold-Wallets”, which are very securely stored. The gold stocks of our customers, on the other hand, are securely stored in the bonded warehouse in Switzerland and insured against theft and fire. Access to Bitcoin and gold is always based on the six-eyes principle. One person alone must never make a difference.

BTC course analysis – breath after Bitcoin secret

After reaching the previous annual high of EUR 735.04 (USD 780.08), the share price fell to EUR 702.61 (USD 745.66), but recovered again.

Summary of the Bitcoin secret

On December 5, the price fell to 702.61 EUR (745.66 USD) and broke through the Bitcoin secret. However, the price was able to rally again and currently stands at 728.75 EUR (773.40 USD).
Wow – the price has risen even further! With 735.04 EUR there is a new maximum for the year, which is of course very nice. Although the price fell – by 33 EUR to 702.61 EUR (745.66 USD), but this fall was of short duration: Already on December 6, the price tested the Bitcoin secret again and wanted to break through it. Although it took another day (and two bounces on the EMA200), the price broke through the resistance described by the EMA100 again on December 7th and has shown a stable upward trend since then. The Yuan’s continued economic situation appears to be taking its toll.

Since noon today, the MACD line (blue) is also above the signal (orange) again, which is also a bullish sign. Previously the MACD line was much below the signal, which also led to a test of the EMA100, but with a bounce at this support the MACD was clearly bullish again.

This bullish signal is confirmed by the RSI (third panel from above): With 67 it is not only bullish, but almost overbought.

The MACD is positive

The Chaikin Oscillator (lower panel) can hold itself since the 6th of December over the zero. Of course it stands and falls – but that’s normal. It remains to be seen how far the Chaikin Oscillator falls now – but the bullish signals of the other indicators are positive.

And again a new maximum value reached, course lies over the trend, all indicators are positive – slowly it becomes boring to write 😉 Anyway everything works so far positively. This positive impression does not become worse also by a view on larger time scales:

The positive picture is also supported by the view on the 240 min chart. Here, too, all indicators are positive. The EMA is a stable support; it has been tested a few times, but has always held up well so far.

Finally, we come to the 1D chart. I have taken a look at the whole year – after all, we are slowly approaching the end of the year:

All in all, almost everything is in the completely green range – although not as grandios green as in the other charts: the MACD is positive, but the MACD line is below the signal. The Chaikin oscillator is positive, but just above zero. In addition, it is noticeable that the trading volume has been declining somewhat since mid-November – this should be kept in mind.

Well – from a technical point of view everything is positive. The

Isle of Man to Regulate Bitcoin Company in the Future

Companies active in the digital currency industry on the Isle of Man will have to comply with the laws on anti-money laundering (AML) in the future and will probably fall within the remit of the Financial Service Commission (FSC) this summer.

The government of the Isle of Man has adapted the Crime Act 2008 in such a way that the Bitcoin exchanges located on the Isle of Man, for example, will now also be affected by the law.

The changes to the laws have already been approved and the following companies will have to comply with AML from 01.04.2015:

“Companies that issue, transfer, store, administer, manage, lend, sell, exchange or accept from persons as a means of payment for products or services the transferable virtual currencies (including crypto currencies or comparable currencies) will be affected by the new regulation.

These companies will have to report to the authorities as soon as they suspect that a user is engaged in illegal money laundering. As a result, companies are encouraged to use “Know Your Customer” or KYC (know your customers) practices and request personal information for verification.

Registration

The amendment also includes an obligation to notify the companies concerned so that they can be supervised by the Financial Service Commission (FSC) of the Isle of Man.

The bill will be approved by Parliament on Tuesday. As soon as the law receives the royal approval, which is expected in summer 2015, the FSC will become the competent supervisory authority for anti-money laundering matters.

Phil Braidwood, a member of the Ministry of Finance, pointed out that companies must register within six months of the law coming into force.

Positive news?

“In summary, the news can have a positive impact on businesses as they struggle for the legitimacy and trustworthiness of customers and banks,” said Sian Jones, co-founder of the European Digital Currency & Blockchain Technology Forum.

However, Andrian Forbes, co-founder of Bitcoin company TGBEX, is not so pleased with the news:

“The new legislation sends a positive signal to the Bitcoin companies located on the Isle of Man, but the extra costs involved seem too high for the startups.

Until now, the Forbes company only had to apply the Know-Your-Customer procedure to customers who wanted to buy Bitcoin worth over 12,000 euros. Under the new law, however, the company would already have to collect this data from customers who buy BTC worth 1,000 euros.

Forbes sees the law as a positive development for Bitcoin companies in terms of customer confidence. However, he does not believe that the banks will be influenced by it and will provide Bitcoin companies with an account with immediate effect.