Back in November 2013, famous investor and gold proponent – Peter Schiff – had stated that Bitcoin was merely a bubble resembling the “modern day tulip mania”, and that he did not think it would end up being a source of commerce for the world. On 22nd May 2014 however, BitPay announced in a blog statement that Peter Schiff’s Euro Pacific Metals will be the latest merchant to accept Bitcoin payments through their platform.
“Bitcoin offers tremendous benefits as a medium of exchange for both our domestic and international customers. A wire transfer of fiat funds can be slow and expensive for the customer, and credit card fees are too high to absorb at the low premiums we offer,” stated the Director of Marketing at Euro Pacific Precious Metals, Michael Finger, in a press release. “Not only does BitPay’s service make business sense, but we are excited about giving owners of bitcoin the opportunity to inexpensively and reliably convert any excess holdings into precious metals rather than back to fiat currency,” he added.
- Euro Pacific Precious Metals specializes in creating high-quality bullion coins and bars part of its customers’ financial portfolio.
- The company has built a strong reputation for calling out unsavory practices in the gold dealer industry.
- It is also recognized for its honest as well as competitive pricing across all product categories.
- Executives at Euro Pacific Metals regularly try to find new ways to enable simpler and easier transaction for its users.
- The company says that this is the reason for selecting BitPay.
- BitPay basically converts the Bitcoins from customers into the U.S. dollars in which Euro Pacific will be paid.
- So Euro Pacific still does not come directly in contact with Bitcoins.
- The company is essentially banking on the hopethat several users that capitalized off of Bitcoin would want to move their cash towards precious metals.
- BitPay says that it is attracts merchants who sell low-priced goods where credit card fees are expensive and high-ticket items such as gold and silver where chargebacks are common and costly.
- Accepting Bitcoins enables merchants to make these transactions irreversible, whilst eliminating the risk of fraud and identify theft for the buyer.
- BitPay currently processes payments for over 30,000 merchants globally.
- Although several other Silver and Gold dealers to exchange for Bitcoin have already appeared, Euro Pacific Capital will be the largest such company.
“We are very excited to form a partnership with Euro Pacific Precious Metals, especially right on the heels of our collaboration with Toshiba,” commented the Executive Chairman of BitPay, Tony Gallippi, in the same release. “BitPay is honored to have a role in helping such global and established companies integrate bitcoin into their payment systems,” he added.
In an interview with benzinga.com’s Mark Thorburn, Schiff speaks about the suppression of the price of gold as well as Inflation:
“We have a situation now where all the world's central banks have embraced inflation. Inflation is no longer an enemy to be fought. Right? But it's a comrade, you know, to be coveted, you know. We embrace it. Inflation is our best friend. We need inflation in order to have economic growth. That is the mantra of the day. According to central bankers, the worst thing that can happen to an economy is that prices don't go up, that the cost of living doesn't increase, or worst yet, that you can actually buy stuff for less money than the year before. That would be, you know, the equivalent of, you know, economic poison. It's like, you know, a tornado or a hurricane destroying your economy if the cost of living were to go down. So, central bankers want to do whatever they can to make sure that the cost of living goes up and that money loses value every year. Well, that is a perfect environment for gold. There's never been an environment that is so conducive to owning gold as the one that exists today. You also have the central banks around the world that are loaded up with dollars or Euros or yen, when the central banks that create those currencies have guaranteed that anybody holding those currencies is going to lose purchasing power,” he said.
What has this got to do with Bitcoins?
"The people who have Bitcoins, they're worried about central banks, they're worried about fiat currency, they're worried about inflation, and so they bought Bitcoins to protect themselves,” Peter Schiff told CNBC. “I think it's a very fertile market for precious metals. I think somebody who's already worried about these things is more likely to want to buy gold than someone who doesn't have any Bitcoins.”
Update: Euro Pacific Precious Metals has rebranded itself to SchiffGold.