Tuesday, August 15, 2017

BullionCoin Launches Web Site

Today BullionCoin launched its new web site and released its white paper. The web site can be viewed here and this is the link to the white paper. The white paper is 27 pages long. In a quick review of the white paper, I did not see any information that did not agree with the basic concepts of BullionCoin that are out on the GoldVu web site we mentioned in our earlier article. The white paper makes no mention of the Allocated BullionExchange (ABX).

Here is some information from the web site about the debit card that BullionCard will offer:

"In order to simplify payments in global “fiat” currencies, like US dollars, BullionCoin members have the opportunity to ask for a BullionCoin MasterCard. This highly convenient prepaid card facility is denominated in gold (XAAU) or silver (XAAG) BullionCoins and allows members to pay directly in BullionCoins.

The Prepaid BullionCoin Debit Card is a world-class financial product allowing you to be topped-up at any moment without having to sell BullionCoins. The prepaid card converts XAAU or XAAG BullionCoins instantly into any fiat currency to complete a payment or transaction. Prepaid card payments are only limited by the balance of member’s account."

This description make it sound like this debit card will actually convert the physical gold or silver in the card holders account to the local fiat currency of choice instantly at the point of sale. I do not know if that would be viewed as "sale" of the actual gold or silver for tax reporting purposes or not. I did not see any tax issues discussed on the web site or in the white paper. 

One item of interest on page 19 of the white paper is that BullionCoin chose to setup a centralized KYC (Know Your Client) process. They feel an advantage to this is that a lost or stolen BullionCoin eWallet can be recovered providing more safety than many crytocurrencies do in this regard.

At first glance, BullionCoin appears to work pretty much like it has been described on the GoldVu web site and the information about how it will work are all on the web site and in the white paper. All that remains now is to see what kind of support actually exists for BullionCoin. 

Along those lines, there was no further news on the 250 ton gold buy order that has been said to be coming on the web site launched today. Since that is probably the major question people will have related to what has been talked about all this year leading to a gold price "reset", here is the information I have at this point in a bullet point list:

- in this article, I published David Gibson (of GoldVu) stating by email that only Andrew Maguire knew the details related to those comments about sovereign sized buy orders of 250 tons. He also told me BullionCoin should launch within 3-4 weeks which has turned out to be correct. 

- in one twitter comment  recently, Andrew Maguire said that the one of the events he has talked about this year would lead to the 250 ton gold buy. We assume he meant the launch of BullionCoin, but David Gibson has said that it is possible that the 250 ton buy order is not directly related to demand from the launch of BullionCoin. We also have this recent twitter comment. We simply do not have very clear information on this so far and it seems clear that not even ABX member David Gibson knows the details behind these general comments.

- in Twitter comments here, David Gibson (GoldVu) responds to some questions on the 250 ton gold buy order. He repeats what he told me by email that many people are assuming the the BullionCoin launch would generate the 250 ton buy order, but that may not be the case and people should not assume that. In other words, the 250 ton buy order might be a separate event not directly related to initial demand for BullionCoin.

- in this article I laid out the full timeline of articles and interviews done by Andrew Maguire in 2017 talking about a coming gold price reset and the 250 ton gold buy order. At this point we are still waiting for this to materialize. I will update this article for about another month to see if anything further of significance surfaces related to BullionCoin and then post the full timeline again. Unless we get some bigger news by then, that will be the final update here on BullionCoin. (update note: looks like we got bigger news already today, see news update article just above)

At this point, until there is some kind of tangible news or evidence related to the large gold buy orders that have been predicted and substantial institutional support for BullionCoin, there is not much more to report in relation to what we try to cover here.

If news on that does surface, we will cover it. Otherwise we will just move on since thus far BullionCoin has not made any significant impact on the gold market that can be seen. The market has not given any indication so far that anyone sees a big immediate demand for physical gold or silver coming soon that cannot be met with supply. If that does happen, it will clearly take the market by surprise. 

Update 8-15-17 (3:45 pm CST): The ink on this article was barely dry when this news from the ABX broke. The ABX announces it has severed ties with BullionCoin and will move in another direction. It does not appear that BullionCoin will have any significant impact on the gold market so we will not cover it further here since that was the original reason we did try to cover it.

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