Why Dig!tal currencies are growing!
Usefulness?•Make online payments 24 hours a day from anywhere.
•Send and receive money instantly to family, friends and business associates worldwide.
•Collect real-time online payments from sale of goods and services, online games, auctions, etc.
•Easily exchange dollars for gold and vice versa.
E-Currency Benefits
•FREE account signup.
•Real-time online payments.
•Mass payments with one click.
•Email payments to any email address.
•Request payments from anyone with an email address.
•Perform one-time and recurring payments.
•Lower merchant fees than credit cards.
•Top Class security thanks to the PIN verification of spends.
What is a gold currency?
A currency is a unit of exchange, facilitating the transfer of goods and services. It is a form of money, where money is defined as a medium of exchange, a store of value. Therefore gold is a better money than a currency because it better keeps its purchase power with time. In fact if 50 years ago you could completely dress yourself with 100 grams of gold then today you still dress yourself with 100 grams of gold which is not the case with a currency. Effectively if 50 years ago you could dress yourself with 50$ then today it is not enough because of inflation, so gold is a better money.
Gold is similar to a currency, that is why many people use the term "gold currency" to talk about gold as a medium of exchange.
A while ago, gold was not as convenient as currency paper as a method of payment because to purchase something for a value of 100USD it is difficult to break off a slice of gold that you carry to that value and hand it over to the merchant. But now with Internet it is not a problem anymore since you can have an online gold account from where you can send a payment of any amount to anybody in the world as you can do with your bank account.
As you can open a currency account with a bank you can open a gold account with corporations (gold currency issuer/supplier) such as E-gold and Pecunix and then to put gold into your gold account you just have to use an exchange provider as listed in the home page, who make a business simply converting national currencies to gold and visa versa.
Those companies hold in trust a quantity of gold bars corresponding to the total of all their customers' gold assets and act as custodian on behalf of clients. This gold is in the form of actual gold bars and held in escrow in banks around the world. With this system each account holder, who can be a consumer or a merchant, actually 'owns' an amount of that gold inventory and this holding is reflected in his account. Transactional history and balances are available and a small fee is charged for each transaction and for storage.
Advantages and inconveniences of E-money
1. Purchase power. Despite the fact that the value of your gold account in national currencies will vary with the price of gold we explained before that with time its purchase value is maintained.
2. Although the transactions are not expensive, especially when compared to conventional systems such as banking, credit card, Western Union and the like, there is still a cost to be considered. Exchange providers traditionally charge anywhere between 2 and 15% depending on how you fund them. If you use a credit card to buy gold you will incur higher charges naturally. If you pay cash then the charge will be less.
3. The transaction is instantaneous. There is no 'waiting period" for any party. Once the 'spend', as it is called, is done the debit from your account and the credit to the account you have spent to is done.
4. The spending is irrevocable. That is to say irreversible. Not like a bank check which one can claim was falsely issued or a credit card payment which one might claim was unauthorized. The gold currency issuer will not reverse a transaction you made. One should therefore be totally sure that one wants to make the spending and that one is spending to the correct account. You cannot rely upon the person you are spending to reverse it in the event of an error.
