New bitcoin trading site, Coinabul.com, is now accepting bitcoins in exchange for gold. Orders are currently live during the private beta. Coinabul is the only true Bitcoin-to-Gold exchange in the world. Bitcoin is a digital stored value vehicle, able to provide near-instant transaction capability in a global Internet economy. Bitcoin users are able to trade in bitcoins to their national currency via currency exchanges, but for users who prefer to save their money in gold, Coinabul provides instant gold purchasing capabilities.
Bitcoins aren't just an abstract financial instrument living somewhere in the digital ether anymore. They're now a physical currency capable of taking a ride in your pocket or scratching off your lottery tickets.
The physical Bitcoins, called Casascius Bitcoins and created by a guy in Utah named Mike Caldwell, are made of brass, with gold electroplating on the 25 Bitcoin denomination. And, of course, they're tied to the peer-to-peer, open-source digital currency that's been exchanged on the Internet for a while now.
What is the bitcoin backed by? As in gold itself is backed by itself and works GREAT but once again doesn't happen instantly like digital transactions and those wanting them need/want.I guess since most who would be interested in bitcoins are also aware of the current economy, where our government ( and others ) are trying to take us AND if they succeed I don't see the point in a digital currency but rather something that can be locally traded like shire silver or other "physical" goods.
Craig Franco hopes to cash in on Gold currency legalization with his Utah Gold and Silver Depository. His business idea: Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings.
It differs from its parent Bitcoin in that can be efficiently mined with consumer-grade hardware. Litecoin provides faster confirmations and uses memory-hard, scrypt-based mining to target the CPUs and GPUs most people already have. The Litecoin network is scheduled to produce four times as many currency units as Bitcoin. The purpose of Litecoin is to function as silver to Bitcoin's gold, in the sense of being a relatively less valuable coin that is easier to obtain and transact with.