Amagi Metals to Stop Accepting Fiat Currency in 2016

[Shane Harris]

http://www.coindesk.com/bullion-deal...fiat-currency/

Full Article:

Precious metals and coin dealer Amagi Metals announced today it would stop accepting US dollars as a payment method at the end of 2016, saying it had “lost confidence” in the future value of the world’s most popular fiat currency.

While several prominent retailers and dealers have joined the bitcoin ecosystem in 2014, and some businesses have always been exclusively bitcoin, Amagi is one of the first to halt fiat acceptance.

The company said in a statement:

“Since the dollar was decoupled from gold in 1971, it has lost 97% of its value compared to the yellow metal and 83% of its domestic purchasing power, and the trend shows no signs of stopping.

Both investors and foreign governments have begun to lose confidence in the dollar’s future… and so has Amagi Metals. Thus, Amagi has planned that, by the end of 2016, the company will no longer accept US dollars or other ‘fiat’ currencies. Instead, Amagi plans to be trading exclusively in cryptocurrencies like bitcoin.”

After 2016, Amagi will serve customers holding fiat only through an exchange on its website. Those customers will need to convert their money into digital currency before purchasing.

Amagi CEO Stephen Macaskill offered a grim future vision for paper currencies, suggesting his decision was not as radical as it sounded:

“With the adoption of cryptocurrencies increasing every day, their viability is virtually assured. History shows that paper currency, backed by nothing of value, will ultimately fail. It’s only a matter of time until no one will be accepting the dollar. By trading exclusively in cryptocurrencies, we’ll still be in business when that time comes.”
Nearly two years of bitcoin

Denver, Colorado-based Amagi Metals has been a pioneer in the bitcoin and cryptocurrency space, accepting bitcoin in November 2012 when the currency had made little impact on mainstream attention.

Bitcoin now accounts for over 40% of all customer payments, the company said, and was responsible for a total $10.4m in sales up to March this year.

It began accepting litecoin and dogecoin payments that same month, but dropped dogecoin in July.

Along the way, Amagi has had to battle for its principles, having bank accounts unilaterally shuttered by Bank of the West, BBVA Compass and Colorado’s First Bank for accepting bitcoin. It keeps a minimum two banking partners to ensure service is never lost completely.
Bitcoin and money ideals

Exchanging newer digital currencies into more ‘traditional money’ like gold and silver added to the digital currencies’ stability and air of legitimacy for new investors, Amagi added.

Though the two do not always walk hand in hand, there is a lot of overlap between the cryptocurrency and precious metal-holding communities thanks to a shared interest in sound money, certain Austrian economic principles and a mistrust of central bank-controlled fiat currencies.

This has produced several businesses that trade digital currencies for precious metals and vice versa, including Agora Commodities, BullionStar, and Bullion Bitcoin. Others trade precious metals via the Ripple Network, like Gold Bullion International and Ripple Singapore, while GoldMoney Group’s Netagio cold-stores bitcoins alongside bullion in its vault.

[Seraphim]

Look out ISIS; there's a new 'Murika hating turrist on the block.

[Brian4Liberty]

I understand the sentiment about the US dollar, and the support for bitcoin. Don't know that I would do that with my business though. I would want to take as many forms of payment as possible. Competing currencies and all that.

After 2016, Amagi will serve customers holding fiat only through an exchange on its website. Those customers will need to convert their money into digital currency before purchasing.

Is there a fee for that transaction?

[Shane Harris]

I think this will become the standard as the dollar slowly dies. Amagi is just very ahead of the curve, so much so that they may in fact lose business in the short-term, while the dollar is still superficially the king of the hill of fiat.

[jkr]

[amagimetals]

Thanks for the support everyone. Our CEO, Stephen Macaskill, will be doing an AMA on r/Bitcoin next week to cover questions and thoughts. Should be great!

[mad cow]

Are they only going to purchase their stock with PM's or Bitcoin?

[Madison320]

I predict Bitcoin will die first, then the dollar and most other fiat currencies. Gold will be the last one standing.

[dannno]

I predict Bitcoin will die first, then the dollar and most other fiat currencies. Gold will be the last one standing.

Bitcoin will never "die" unless something unforseen happens. It may go down in value, or up, in the near future but ultimately it will only become stronger as other govt. issued currencies weaken.

[PRB]

bitcoin isn't fiat currency????

[dannno]

bitcoin isn't fiat currency????

No.

Fiat money is currency which derives its value from government regulation or law.

[PRB]

No.

so what do we call currency which has no inherent value?

[Seraphim]

A function of utility and speculation. Bitcoin is NOT fiat.

so what do we call currency which has no inherent value?

[Zippyjuan]

I think this is just a publicity stunt. Especially since they say it won't happen for at least two years. By then people will have forgotten they said it and will still be taking dollars.

Or if they do-

After 2016, Amagi will serve customers holding fiat only through an exchange on its website. Those customers will need to convert their money into digital currency before purchasing.

another way to charge more fees to customers and hopefully make more money (unless they decide to shop elsewhere which is why I think they won't really do it).

[nobody's_hero]

Bitcoin will never "die" unless something unforseen happens. It may go down in value, or up, in the near future but ultimately it will only become stronger as other govt. issued currencies weaken.

Bad money drives out good. Bitcoin is no exception.

[ClydeCoulter]

I think this is just a publicity stunt. Especially since they say it won't happen for at least two years. By then people will have forgotten they said it and will still be taking dollars.

Or if they do-


another way to charge more fees to customers and hopefully make more money (unless they decide to shop elsewhere which is why I think they won't really do it).

Hmm, I think I have to agree with you here. Why make such an announcement, when they could just exchange any dollars collected for bitcoin themselves at any time they please?

[PRB]

I think this is just a publicity stunt. Especially since they say it won't happen for at least two years. By then people will have forgotten they said it and will still be taking dollars.

Or if they do-


another way to charge more fees to customers and hopefully make more money (unless they decide to shop elsewhere which is why I think they won't really do it).

I agree, there's no reason they can't start accepting one and just slowing phrase in/out.

Luckily for metal buyers, they're typically good at calculating total costs, so if they had to pay more in form of processing fees, convenience fees, they'd find out fairly quickly.

[DFF]

In spite of the future not looking so hot, the dollar is still the king currency.

Not taking payment in it makes no sense at all, unless your goal is to go out of business.

[Shane Harris]

Fiat is imposed from the top-down by force and given value by virtue of a coercive monopoly enforced through the collection of fiat in taxes. Bitcoin is a bottom-up currency backed by electricity as its basic commodity and whose value is earned through market forces determined by its utility (divisibility, scarcity, velocity, weight, durability), which is rooted in the technological innovation behind the architecture of the blockchain.

[TheCount]

Hmm, I think I have to agree with you here. Why make such an announcement, when they could just exchange any dollars collected for bitcoin themselves at any time they please?

They will inevitably get some sales from various ideologues based purely on this, whether they follow through or not.