What is e-gold?
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E-gold is an electronic gold currency issued by Gold & Silver Reserve Inc. under e-gold Ltd., a Nevis corporation. E-gold is integrated into an account based payment system that empowers the instant transfer of gold ownership between users. The e-gold corporation boasts of an overwhelming two millions accounts. With over 3 tons of gold in storage and an estimated 50,000 e-gold transactions each day, the e-gold system is sure headed for unprecedented growth.
E-gold transactions, often termed as an e-gold “spend”, are accomplished electronically, typically via the web interface provided by the e-gold corporation. All transactions are settled by weight of the metal. A user may instantly send (spend) a specific amount of gold, be it a gram or an ounce, to another e-gold account. A user may also receive physical delivery of gold upon payment of an additional fee.
The two major reasons behind e-gold’s success as a monetary system have much to do with the reliability offered by gold, one of the rare and precious metals. Firstly, gold as a means of monetary exchange has a profound history. And secondly, weight units have a precise, unwavering, and internationally accepted definition. Paper currency of a nation is typically affected by its monetary policy. Therefore, paper currencies do have certain inherent economic risks, such as inflation and devaluation. On the other hand, e-gold offers greater reliability since it is guarded against such economical fluctuations.
By possessing e-gold funds, you effectively gain access to bullion investing, without being anxious about storage and delivery. With e-gold, you could buy just about anything that the web offers, provided the merchant accepts e-gold as a form of payment. E-gold has a few advantages over conventional forms of payment. For instance, the transaction fee on an e-gold spend is very much affordable. Furthermore, relative to credit card transactions or checks, e-gold spends clear instantly. Unlike PayPal and other payment processors that typically have several account types, e-gold system bears only one account type. That is, all e-gold accounts have the same capacity to transmit and receive e-gold funds, and all accounts are charged the same fee, which is 1% per annum on all e-gold stored in a user’s account.
E-gold is very much out of the usual run of things, since all e-gold transactions are non-reversible. Specifically, even in the case of a fraudulent spend or a legitimate error, there is no way to reverse the transaction. Thus e-gold is analogous to a cash transaction, and is quite dissimilar from other contemporary payment processors, such as PayPal. A striking feature of the e-gold system is that the e-gold corporation does not sell electronic currency directly to the user. This renders the e-gold corporation free of any financial risk whatsoever. However, OmniPay (a sister concern of e-gold), allows for the exchange of e-gold account holdings for paper currency and vice versa.
E-gold Ltd. claims that it possesses gold to back the currency in the e-gold system. Since gold is a tangible commodity, it is bound to experience price fluctuations. However, gold prices have seen a steady and impressive growth over the past five years, and consequently, the value of e-gold account holdings has risen over the same period. There simply is no better time for e-gold investment than now.
About the Author
Nitin is a writer, professional game developer, and web developer. You can reach him at http://www.sharingarena.com , a growing online resource for articles, humor, stories, blogs and news.
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