>  I think the argument that
> out-exchange fees run 3% to 9% shows poor research
> on the part of this guy, ...

Actually he talks about exchange fees, not out-exchange.
In fact he seems to be more concerned about the in-exchange for the client
as the context is that the clients first needs to open an e-gold account.

Now, if we take the client's in-exchange and the merchant's out ex-change
together, then then about 4% would be the minimum.
If then say that the amount of purchase is $1,000 and consider that the
client as well as the merchant have to each pay both their transfer fees
and the echanger's transfer fees and if we further consider the average
transfer sending fee to be $25 and the receiving fee to be about $15, then
we are looking at:

In-exchange for client:
$20 (2% fee) + $25 + $15 = $60.00
Out-exchange for merchant:
$20 (2% fee) + $15 + $25 = $60.00

Total cost: $120 (amount was $1,000) or 12% !!!

If the purchase is smaller, in the median or even low 100s range, then the
only one who benefits is the banks.

So, from his point of view, the guy is spot on.
However, he forgot to mention the convenience of privacy and the fact that
half-way smart people only do larger in/out-exchanges to reduce the bank
fee component percentage wise.

In the end, the real benefit of e-gold, is inter-communal exchange, of
course.
But I fear, the user base needs to grow quite a bit larger and the overall
volume of bailed-in funds with it, for this benefit to become more
blatanly obvious.

Cheers,
Robert.

budget & privacy website hosting
http://www.cyberica.net
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http://www.u2planet.com/cfdomaintrust.html








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