> > > However, only GoldMoney actually operates on a definite gold
> > > ownership transfer basis.
> > Craig Spencer wrote:
> > This is a difference that makes no difference.
Claude Cormier wrote:
> I think it makes at least one difference for now. One of perception.
> When I suggest to people who want to buy gold that they have the
> choice between gold itself in the form of digital money and a
> digital currency backed by gold, they say they want the real thing.
> It is a matter of perception and important in the eyes of many...i.e.
> mining companies who will be paying gold dividends.
Claude, I think empirical and historical evidence suggests that this
perception is not as important as you suggest. It appears that Evocash
and Osgold do exceptionally well considering they have no proven gold
backing at all. Certainly e-gold appears to be a giant in comparison to
all the other DC's commonly mentioned on this list. Claude, how can we
believe that people prefer GoldMoney because they percieve it to
be "the real thing"?
Since very early in the history of money, people around the world have
been happy to use receipts, notes etc. in place of "the real thing"
because its more convenient and often more secure. Claude, surely this
will not change?
Claude Cormier wrote:
> Of course, on the legal side, a digital gold currency is very much
> different than a currency backed by gold (even if backed at 100%).
> In the first case, the owner of the DGC hold a hard asset, in the
> later case, the ower of the GBC owns someone else liability.Is this
> important? I am not sure. But the fact that some user agreements of
> GBC's can be change by the issuer could make this difference very
> important. In the GoldMoney system, no matter what happen to the
> transporter, I own the gold in the vault. In GBC's system I only own
> a claim on some gold that does not belong to me.
Claude, these legal intricacies seem to make great marketing tools, but
to really expose the difference between say, e-gold and GoldMoney,
let's examine the practicalities.
Let us imagine for a moment that through some terrible disaster, GM
Networks Ltd (Goldmoney) and e-gold both lost their entire database of
customer accounts (some will say this is impossible, but that is not
the point, bear with me). Now I (as a GoldMoney account holder) want my
gold, and I know I hold title to it, so I pop down to the Via Mat vault
and I tell them I've come for my gold.
Do they have a record of gold belonging to me? I doubt it, they will
probably tell me that they don't have records of any gold belonging to
me, and if I believe I have a claim on the gold held by GM Networks
Ltd. then I should contact them to take posession of my gold. Of course
the DB is gone, so Goldmoney don't know how much to give me. Imagine
they pay me out; if they give me too much, they won't be able to stand
by their promise to pay all the other Goldmoney users!
It is clear to see that for all practical purposes GoldMoney is just
like e-gold... they are both gold backed digital "notes", the terms of
which are published in the respective user agreements. Both systems
would be in exactly the same predicament if they lost their DB... how
to honour their promise to pay?
GoldMoney have a governance policy that gives users reasonable
confidence that the digital "notes" issued by GoldMoney are 100% backed
by gold. The e-gold governance allows for a "looser" relationship
between the digital "notes" and the gold. This may give users a
perception of greater security in GoldMoney, but surely Claude, to
believe GoldMoney is more secure because you have "title" to the gold
is to mislead yourself?
I think Craig is correct when he says, "This is a difference that makes
no difference".
Regards,
Sidd.
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http://two-cents-worth.com/?sidd
http://pecunix.com
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