The Digital Currencies
Basically all digital currencies are in fact online payment systems allowing you to transfer instantaneously some value to an individual or a company located anywhere in the world. This transfer could be a simple gift or a payment for an object or a service that you want to get.
Who can use them? Simply people who use money:
- They are borderless. A transfer can be sent to anyone in the world.
- Transfers are instantaneous, no waiting for checks to clear or credits to be made
- Transactions fees are lower than credit cards and banks.
- Payments are irrevocable. So no chargeback anymore. "Get paid, stay paid" unlike credit card payments.
What is the main difference between digital currencies?
- Business-to-business payments
- Point of service sales
- Person-to-person payments
- Bill payments
- Charitable donations
The main difference between digital currencies is the way they are accounted. Some are simply accounted in a specific national currency and some others are accounted in weight of metal like gold or silver.
For example Perfect Money e-currency and WiredPay USD are accounted in USD. So if you have an Perfect Money e-currency” account with a balance amount of 500 then your account value is 500$USD. However if you have a Perfect Money gold, c-gold or Pecunix account which is accounted in weight of metal then its balance amount is a number of units of metal not a number of a national currency. That is to say that if you have an c-gold account with a balance amount of 500 it means that you have 500 troy oz of gold. The equivalent current fiat (national currency) values are displayed for reference only, and will fluctuate with the current market price
Although digital metal currencies are accounted by weight, their payment system allows a value transfer to be expressed in terms of different national currencies. For example, it is possible to:
- Transfer 5 troy oz worth of c-gold
- Transfer 4.3 grams worth of c-gold
- Transfer US $300.00 worth of c-gold
- Transfer CHF 985.88 worth of c-gold
This means that an American can pay an Australian or a Japanese can pay an Spanish the correct weight of gold for a good or service as easily as if the price had been quoted in his own national currency.
Advantages of Digital Gold Currencies over national currencies
By definition Money is anything that functions as a medium of exchange that is socially and legally accepted in payment for goods and services and in settlement of debts.
But, what makes a money better than another one? Simple, its capacity to keep its purchasing power. Therefore Gold is still the best money in the world. It exists for nearly three thousand years as a medium of exchange and on a long period of time it keeps its purchasing power contrarily to any other national paper currencies that see their purchasing power reduce by inflation.
So keeping your assets in Gold in the best way to protect it against inflation and thus keep your purchasing power year after year.
However carrying gold in not practical as a form of payment, but thanks to internet and digital gold currencies that brought us the possibility exchange tiny amount of gold for a tiny fee.
Because gold has an internationally agreed value, Digital Gold Currencies system are perfectly suited to the specific demands of e-commerce.