----- Original Message -----
From: <[EMAIL PROTECTED]>
To: e-gold Discussion <[EMAIL PROTECTED]>
Sent: Thursday, July 19, 2001 10:57 AM
Subject: [e-gold-list] Newbie questions
> Perhaps you can direct me to a FAQ for these items,
> but I couldn't find one. In particular, the e-gold
> site was no help.
>
> OK, here goes:
>
> 1. What is the difference between DigiGold and
> e-gold? It seems payment can be sent with either,
> so why two different systems?
Digigold is defunct, e-gold is fully functional and its usefulness is
unlikely to be interrupted by disputes between contracting parties (e-gold's
assets and inputs have low asset specificity, meaning that they can be used
for other uses and can be obtained from suppliers presently serving other
uses). (Digigold relied on Systemics to operate the Issuance Server, and now
that Systemics no longer provide service to Digigold, Digigold cannot be
used)
Digigold relies on an electronic wallet on the client's PC, e-gold uses a
standard web browser only.
Digigold charges no transaction, issuance, reemption or storage fees, e-gold
charges transaction, redemption and storage fees.
Digigold was intended to invest in gold denominated investments (low risk
short term debt securities) while maintaining at least a 25% Primary
Liquidity Reserve of e-gold, while e-gold does not invest it only procures
storage of physical metal in vaults. Digigold was also to maintain Owners'
Equity of at least 8% of risk assets.
Digigold is based on digitally signed receipts, stored in an electronic
wallet, e-gold is an account based system.
Digigold has not turned out to be profitable, e-gold has turned out to be
profitable.
I am a big fan of Systemics and their products, however Digigold has been a
failure.
>
> 2. (I may not be popular for this one!) How does
> e-gold compare with other gold-based e-currencies
> such as GoldMoney? GoldMoney doesn't seem to be
> as popular, but their web site is a lot more
> informative! Also, Standard Reserve?
Goldmoney and Standard Reserve are good services and currencies. Standard
Reserve does not charge storage fees based on the account balance, rather it
charges account keeping fees, and this makes the pricing structure more
simple. Transaction fees and account keeping fees seem quite high compared
to e-gold and gold money, however the liquidity is clearly superior with
debit card access. I find the website much harder to use and find
information on. Goldmoney offers substantially lower storage and transaction
fees for transactions under US$500 compared with e-gold, and does not charge
fees to issue currency or redeem it. Their website is informative. Overall
e-gold is the oldest and biggest, but the others offer various advantages,
depending on what you are trying to do.
>
> 3. Transaction details: As I understand it, all
> you can do on e-gold's web site is transfer gold
> from one account to another. i.e. - no exchanges
> to or from currency, and no exchanges between the
> different e-metals. Correct?
The e-gold website and account functionality allow users to spend money to
each other's accounts and to apply to redeem currency. All exchanges between
currencies/metals is done by third parties.
>
> 4. How is e-gold created? I mean, how does the
> gold get into the e-gold system. When I use a
> service such as OmniPay, they just (as I understand
> it) sell me some gold from their own e-gold account.
> But how did the gold get there originally?
>
> Thanks,
>
> Hans.
Omnipay/Gold and Silver Reserve and other approved parties can buy bullion
and bail it in, in exchange for e-gold. Goldmoney allows anyone to bail in
London Good Delivery Bars, and anyone with a participating bank (e.g. HSBC)
can buy these bars at the spot market price plus a small fee.
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