22 July 2008

E-Currency Demystified

E-Currency/Digital currency

By definition, 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 the internet.

The "E" of e-currency stands for "electronic"; which means the currency used on the internet related field just like email. There are several benefits of using e-currency service on the internet like e-gold and paypal.

Firstly, the e-currency can be used on the internet related commercial applications such as shopping on the internet and doing personal investment via internet.

Secondly, the use of the e-currency services for example e-gold and paypal brings people a new way not to use their credit card as the only payment method on the internet . Sometime s there's a big risk to provide your credit card information to the merchant you do not know.

Thirdly, the e-currency service companies such as e-gold , paypal and EMO can provide both the buyers and merchant the convenient way to send and receive the payment just by clicking the confirm button and the deal is done. None of the payment methods in the world right now can provide this kind of efficiency.

So what is a gold currency?

First, let's define what a CURRENCY is. 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).

Some years back, 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.

Conversely, the same way you can open a currency account with a bank, you can also 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 getmoney.com or me-gold.com, who make a business simply converting national currencies to gold and visa versa. For more information about reliable e-currency exchangers you can visit this online electronic currency directory

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.

With E-currency, You Can:

  • Send and receive money instantly to family, friends and business associates worldwide.
  • Make online payments 24 hours a day from anywhere.
  • Collect real-time online payments from sale of goods and services, online games, auctions, etc.
  • Easily exchange dollars for gold and vice versa.
Benefits To Users.
  • Account signup is FREE.
  • Real-time online payments.
  • Send mass payments with one click.
  • Standing Order payments.
  • 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 via the PIN verification of spends.
How gold can be used as a convenient medium of payment.

1. Open a free gold account in a gold currency issuer such as e-gold.

2. Fund your gold account by following these steps:
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.

NB: 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.

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.

As the world increasingly becomes a global village, many people are looking for safe and secure modes of payment. There are numerous online investment firms that you can benefit from if you have an e-gold account. So go ahead and have yourself a free e-gold account today and seize those online investment opportunities that will come your way. As a matter of fact, many online forex trading companies are using e-currency for their transactions, simply because of its convenience and reliability.