E-Currency/Digital currency

A currency is a unit of exchange, facilitating the transfer of goods and services. So an e-currency is simply a unit of exchange using internet.

What Can You Do?

Benefits To Users.

What is a gold currency? (Definition)

Firstly let's define what is a 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 any currency or gold (for millennia gold has been used as money, a store of value) are a form of money. However 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 any currency. Effectively if 50 years ago you could dress yourself with 50$ today it is not enough because on inflation, so gold is a better money.

Despite the fact that by definition gold is more a money than a currency, we can however say that 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. So the gold currency is similarly to a national currency (USD, EURO, CAD, etc.) because both are units of account. As a bank account contains a quantity of a national currency (1000 USD or 1000 EURO, etc.) a gold account contains a quantity of a weight of gold (10 troy ounces or 100 grams).

A while ago, gold was not as convenient as currency paper as a method of payment because carting around even an ounce of gold is not very suitable. If you wish to purchase a product or service for a value of 100USD then it is difficult to break off a slice of gold 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, GoldMoney and Pecunix. Then to put gold into your gold account you just have to use an exchange provider such as www.getemoney.com, 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.

How to use gold as a convenient medium of payment.

1. Open a free gold account in a gold currency issuer as e-gold.
2. Fund your gold account :

a. Find a reliable exchanger offering the gold currency you are looking for.
b. Fill in a purchase order
c. Transfer him some of your national currencies to pay your order.
d. Once your payment is received and cleared the exchanger will transfer some of his gold from his gold account to your gold account. Doing so there is no gold inventory change at the gold currency issuer but only an ownership transfer from the exchanger to you and this is reflected into your account.

3. Now you are ready to use your gold currencies. You can transfer any amount to a merchant or anybody else in the world having a gold account at the same gold currency issuer than you.
4. If you want your national currency back then you use the exchanger again and it will send you your national currencies in exchange for your gold.

Of the gold bars resting in the bank vault, you would own a sliver of one of those bars. The value of that 200 dollars worth of gold may go up or down. If gold goes down compared to the US dollar your gold 'holding' would reflect this in a slightly less value, perhaps 190 dollars worth of gold. The actual gold does not change. It continues to sit there. Only the value of it may change. By the same token, if the price of gold rises dramatically then your small sliver might suddenly be worth 240 dollars. But let's say that, having acquired the 200 dollars worth of gold, you then decide to spend it on a nice up market DVD player available across the country for 150 dollars. You don't want to pay by check or use your bank account. The retailer accepts e-gold so you simply spend the 150 dollars to his account. This is an instant transaction so the retailer is happy, he has his gold ithout waiting and at a relatively small cost (usually the currency issuer will charge a few cents for the transfer to the recipient). The ownership of that amount of gold has now changed again. You still own a tiny sliver of gold worth 50 dollars but the retailer now owns that portion of the gold bar in the vault worth 150 dollars which you owned. When you make your spend the currency suppliers software makes the record in both accounts of the transfer of ownership. Sometimes it is called gold credits. Presumably, of course, you will get your DVD. There are some variations to the above and one can go into the technicalities of how it works and for those keenly interested there are some links and references at the back of the book. There are some important factors to be aware of however.

Advantages and inconveniences of E-Currency

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.

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The digital currency market has now passed the development stage, it is now in its expanding phase, so it is time to jump in and start a real and profitable business that you can do from anywhere in the world, part time or full time.

Do it with our help to give you the highest chance of success.

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