> > How would such a conglomerated gold currency be a fiat currency? > Sorry about the term abuse. I often use fiat incorrectly because of the insecurities it implies and because I want to differenciate from other digital currencies.
While my idea of fiat is not necessarily correct I do assess it in the same way I assess DisneyDollars which, strictly speaking are not fiat because they are not issued by a government - but neither are the Euro or the US dollar. In fact, the mere existence of an independent reserve bank preempts the use of fiat, if you want to insist on proper term usage. After all, the Federal Reserve is not a government body... > > Or... Is the following statement not true? > > 1g e-gold = 1g pecunix = 1g e-bullion = 1g goldmoney > No it is untrue on two counts: (1) 1g e-gold = (1g sth else - minus exchange fees) (2) all other currencies combined can not bring up the same amount of gramms in circulation. Hence wile 1g e-gold might be close to 1g sth else, 2tonnes e-gold isn't, because there isn't enough something else. Exemption is of course 1mdc/fastgrams which is backed and redeemable for e-gold. > Either way, I think the main concerns are not two words I used and their dictionary meanings, but the fact that for 1g comgold to be redeemable for gold, you need to look at it as 100/100g comgold, redeemable for 40/100g of e-gold, etc... Hence there has to be actual proof of the gold holdings for each currency, or a garantee by the operator of the currency, which in turn means that you have to have 100/100g comgold to have a chance to call in a promise - unless comgold will allow me to used 40g of comgold to get e-gold, which will then itself create an imbalance of the fractual percentage of the holding reserves of comgold in other currencies, which in turn would change the 40g relative rate into something slightly lower, which finally means that I will make a fraction of a gram profit by exchanging comgold for e-gold - which of course, means that comgold can't allow that to happen, which in turn means that comgold is ipso facto not redeemable... If however comgold did allow me to change 40g of comgold into 40g of e-gold, then I'd like to park a couple of tons in your back yard please and drive off with couple of tons of e-gold redeemed bullion at a profit of a few KG, depending on the overall volume of comgold in circulation. In other words, if there are 1,000,000g comgold in circulation and I grab 40% of that and e-gold represents 40% of the comgold reserver and I exchange 10% or 100,000g of comgold for e-gold, then e-gold suddenly is only 36% of the total and the 4% difference are holdings of comgold in comgold, right? But as that can't be, because comgold is not fiat, the percentage of pecinux and others has to increase. Suddenly I get e-gold for comgold at 4% below the basket fraction. I keep doing this until e-gold is 0% of comgold and then use e-gold to buy the now undervalued other currencies. Doing that a few times (while comgold needs to issue more hypothetical grams to keep me at bay, I end up controlling large chunks of all currencies and comgold keeps paying the difference by issuing new comgold-gs to the exchangers - which now stopped being redeemable. If you ask me, I'd call it fiat - for lack of a better term. 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.
