Bitcoin-to-Gold Exchange Vaultoro Implements Lightning Network Payments

Francisco Memoria
  • Gold-to-Bitcoin exchange Vaultoro has recently revealed through a blog post it now allows users to deposit using Bitcoin's Lightning Network
  • The feature is still in Beta, and as such users can only deposit 100 Satoshis using it.
  • The company plans on allowing users to trade without depositing to the exchange.

Vaultoro, the world’s first crypto-to-gold exchange, has recently announced it implemented bitcoin’s Lightning Network as an instant deposit method. In the future, per the exchange’s CEO, users will be able to buy gold with bitcoin directly from their wallets.

To take advantage of Vaultoro’s Lightning Network (LN) payments integration, users will have to download the Eclair Wallet, deposit funds in it, open a Lightning channel, and once its fully loaded deposit funds to Vaultoro’s deposit address. Since the feature is still in Beta, Vaultoro only allows deposits up to 100 Satoshis using the Lightning Network.

Normally, users have to send their bitcoins to Vaultoro and wait for six network confirmations before they can start trading. During the waiting period, their bitcoins are exposed to counterparty risk. With the Lightning Network, the company’s CEO Joshya Scigala notes, users won’t need to trust Vaultoro’s hot wallet to trade.

According to a blog post, the exchange plans on allowing users to place orders directly from their wallets, thanks to the Lightning Network. The blog post reads:

“Vaultoro traders will be able to deposit funds in milliseconds without having to trust our exchange hot wallet if set to instant order. Our goal at Vaultoro has always been to make the exchange radically transparent and now with lightning network, market takers will have no need to trust our hot wallet.”

Vaultoro's blog post

Vaultoro notes that the Lightning Network payments feature is still in Beta, and warns users they’ll be using it at their own risk. The Eclair Wallet is now recommended, as it’s the only Android wallet supporting LN payments.

The company claims it was also the first exchange to support the user activated soft for (UASF) back in May 2017, in an attempt to “help unlock the upgrade stalemate” that divided the bitcoin community, and ultimately led to Bitcoin Cash’s creation.

Per its website, Vaultoro currently allows users to trade gold using bitcoin, down to a minimum of 0.001 grams of gold. The exchange fully transparent, and even lists on its website the amount of gold and bitcoin each user has, while maintaining anonymity.

The exchange’s users can hold gold for seconds or years, while knowing their ownership certificate is safely stored on the blockchain. Gold holdings are physically stored in Switzerland, and can either be requested or left in the vault, where they’re insured. Reportedly, Vaultoro is working on a gold-backed debit card.

Shark Tank Star Calls Bitcoin 'Garbage' Over Failed Real Estate Deal

Francisco Memoria

Shark Tank star Kevin O’Leary has recently claimed he sees bitcoin as “garbage” and that it’s a “digital game,” over what appears to have been a failed real estate deal he tried to use bitcoin in.

Speaking to CNBC during its “Squawk Box” show, Kevin O’Leary noted he believes the flagship cryptocurrency is a “useless currency,” as when trying to transact large amounts the person received the funds wants “some guarantee of its value.” He said:

To me, it’s garbage, because you can’t get in and out of it in large amounts.

O’Leary’s poor experience with the cryptocurrency came as he tried to buy a Swiss real estate with BTC, and was unsuccessful because the other party seemingly wanted a “guarantee that the value comes back to the U.S. currency.”

In an example the billionaire used on the show, he said that if one would want to “buy a piece of real estate for $10 million in Switzerland” the guarantee would have to be there, meaning the person using bitcoin could end up paying more because of its volatility.

You have to somehow hedge the risk of bitcoin. That means it’s not a real currency. That means the receiver is not willing to take the risk of the volatility it has. It’s worthless.

O’Leary added he isn’t a fan of any cryptocurrency, and that invested in cryptocurrencies before as part of a challenge. He revealed he “bought all the crypto crap” and that the $100 he put in crashed 70%, to now be worth $30.

The investor’s purchase was likely made early last year, when most cryptocurrencies were close to their all-time highs, and before the bear market. Bitcoin, for example, dropped from a near $20,000 high to a $3,200 low before recovering.

To ‘Mr. Wonderful’ “today the hot digital is bitcoin,” but “tomorrow it could be whatever. Despite O’Leary’s distrust of cryptocurrencies, he has reportedly invested $100,000 in a startup that makes it easier for users to convert spare change into bitcoin or other cryptocurrencies.

Featured image via Randstad Canada, Flickr, CC by 2.0