> On 26 Aug 2001, at 12:22, SnowDog wrote:
>
> > Goldfinger Coin and Bullion is selling GoldMoney GoldGrams for only
> > 2%. They must be bailing in the gold to offer this kind of rate.
It is good to see spreads coming down but somehow it doesn't make
me feel like jumping up and down, cheering. It's kind of inevitable, isn't
it? Prices of commodities always gravitate down to the cost of
production and the variable cost of executing GBC trades is way down
there below 1%, at volume.
GBC may be good money, better money than national currencies.
In theory, good money is supposed to chase out bad money.
When will this begin to happen? What is the missing enzyme
we're lacking ?
- convenience aspects?
- better security on the users' computers?
- hardware signing devices?
- better data integration in B2B business processes?
- trust in the host? Do we need "deposit insurance"? Good god,
we're already 100% gold backed, what more could they want?
Maybe we need an uber-protocol that provides the programmatic equivalent
of deposit insurance? Win their trust by requiring approvals of all GBC
consortium members to execute any movements of reserves? Can we
drop in place, some of these voting protocols discussed in
WOTE http://www.vote.caltech.edu/wote01/ to
achieve publicly visible separation of duties? We need to reduce the
reliance on image, such as retrospective audits by big-5 auditors,
naming bigshot law firms as trustees, etc.
Surely the collaboration of GBC providers is part of the equation. Recall
that VISA consortium of banks happened only after hundreds of banks
got exhaustion trying to establish their own, proprietary credit cards.
VISA still isn't a credit card itself, it is a consortium, can we get a clue
from this?
TOdd
Date: Sun, 26 Aug 2001 15:08:43 -0400
Subject: [e-gold-list] Re: GoldMoney Bailment
To: "e-gold Discussion" <[EMAIL PROTECTED]>
From: "eCurrencyCrawler" <[EMAIL PROTECTED]>
> On 26 Aug 2001, at 12:22, SnowDog wrote:
>
> > Goldfinger Coin and Bullion is selling GoldMoney GoldGrams for only
> > 2%. They must be bailing in the gold to offer this kind of rate.
>
> And that is the way it should be. If we want digital gold currencies
> and gold-backed currencies to rival national currencies one of these
> days, some excessive spreads of 5-13% that are currently in force
> will have to come down to 2-3%.
>
EXACTLY! It's simple competition for market share... those that cannot
compete will be dropped along the side leaving only those that can afford
to chop the rate.
>
> e-gold will have no choice to make it easy to bail in. Otherwise,
> GoldMoney and e-bullion might well win this game over the long
> term.
>
You're right, this is a possibility.
...my 2 cents.
RJ
eCurrencyCrawler
http://www.americonn.com
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