„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.