> You exchange 100g of e-gold for 100g of comgold. Those 100g of comgold > aren't guaranteed to be redeemable for e-gold, but are guaranteed to be > redeemable for 100g total of any of the currently underlying GBCs (17g > pecunix, 13g goldmoney, 16g e-bullion, 14g 1mdc, 40g e-gold) due to the > flux of in- & out-exchanges.
You are essentially talking about an electronic reserve bank that issues fiat currency, based on supply and demand, yes? I assume to make it workable you would expect currency operators to maintain corespondence accounts with the reserve bank and garantee to balance their respective account in accordance with the percentage of the overall volume represented by their currency? To get them to do that, you would need to offer them to share ownership of the reserve bank (and find a name that doesn't have 'reserve' in it) and the bank would need to generate some sort of revenue (membership fees? exchange courtages?) to make people want to own shares. A pretty big ask in an environment were IG currency operators distrust each other and everyone would want to see everyone else's gold, don't you think? > > pro: diversification of risk > The risk that user loose funds when one of the currencies folds? In fact there would be no risk, as the remaining operators would have to pick up the tab. Any other system would not entice users to use the currency. But more importantly, I feel that most people have a misconception about their own users - or at least the majority of users and the meaning of the word currency, itself. Most people that I know, use IG as currency. As a means to purchase goods and services - NOT as an investment. What you are suggesting would have the underlying goal of getting people to trust the concept enough not to outexchange and instead to use the new IG as an investment vehicle as well. To do that however, you need to offer more than just a spread-risk digital gold redemmable currency. You need to offer interest, dividends, something for people to profit from. If any sane person wants to invest into bullion because they expect the price to go up, and if that investment is longer term, nothing beats the real article - having the coins and bars in your safe - next to your reserve gun and ammo. Sure, a government could try to confiscate it - but that could happen with a currency operator as well. I like the idea of a reserve / clearing system that allows people to deal with one currency while there are several actual currencies in place, but if that is the only reason, then Sidd has done half the work. In the end of the day, if I have no incentive to keep a particular currency, other than promises and fancy documents posted on a site, then I will always opt for e-gold (1mdc) and ultimately for outexchange - to buy the genuine article. And I believe that most 'consumers' have similar views. e-gold ruley supreme - other currencies are great because one can exchange them into e-gold, but e-gold is what people buy and spend the most. It is in fact a currency that flows. I would go as far as saying that e-gold is a currency, the others are private money. The word currency itself has a 'flow' built in. Money doesn't by itself. But then, I am not an IG/DGC operator. I just use the stuff to buy other stuff - as do the people who buy stff from me with it. Cheers, Robert. budget & privacy website hosting http://www.cyberfrontier.net start a profitable online business http://www.cyberfrontier.biz budget domain registrations http://www.u2planet.com --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
