Back in Feb. I wrote that “Parking Value” may be the near future of Bitcoin.
Bitcoin is many things to many people, and because it is both currency and technology many are unable to separate the two from each other to understand the difference. I still believe that Bitcoin the technology is the most important invention here. The ability to move value from one party to another, instantly with no intermediaries and have it recorded publicly for the world to see, that record then stored on tens of thousands of computers globally and eventually in a network of low earth orbit geo-stationary satellites has the power to change the way the world transfers money, and even how it does business.
Many of my colleagues in the gold industry do not get my fascination with it. I get ribbed all the time, as many allude to bitcoin never holding value the way gold can. While I agree with this point, it illustrates what I said before, that few can separate the technology from the currency and therefore are unable to see how this technology is already impacting our reality.
My view is that the immediate use of the Bitcoin technology will be to temporarily “Park Value” in things like gold, or USD, or Euro, and use the technology of Bitcoin to transfer value between parties before it is then “Parked” again in gold, USD, or Euro (or any other form the customer wishes).
Apparently James Turk, founder of Goldmoney may think along similar lines, as he just sold Goldmoney to Bitgold, which is a company doing exactly as I described:
Update for clarity:
From my understanding (I am a US person so cant be a customer and test this myself, maybe one of you will tell me how it goes) Bitgold has developed a proprietary protocol for international payments among its own customers spending gold. While this may be similar to Bitcoin (The CEO has said in interviews that Bitgold is fully compatible with the blockchain and ripple), if it is developed in house it is clearly not Bitcoin. From reviews I have read you can apparently use Bitcoin to buy gold with them, and redeem the gold into Bitcoin when you sell it – thus parking the bitcoin in gold for a time.