Wednesday, April 19, 2006

E-Gold - New Digital Gold Currency


e-gold is a digital gold currency operated by Gold & Silver Reserve Inc. under e-gold Ltd., and is a system which allows the instant transfer of gold ownership between users. There are over two million e-gold accounts. About one quarter of those are active.

As of January 2006, e-gold had 3,376,279 grams of gold in storage, which is worth approximately $61 million. There are typically 50,000 e-gold spends each day, with a total value each day of about $6 million (that is, about 350 kilograms of gold). In comparison, PayPal handles transfers of approximately $60 million per day.

e-gold History

e-gold was founded in 1996 by Dr. Douglas Jackson and Barry K. Downey. Transactions using e-gold have grown dramatically since 2005. The total amount of gold bars (over three tonnes) in the e-gold system is approaching the size of the national reserves of smaller countries. Secondly, e-gold itself is now generating a substantial income from spend and storage fees: it costs a few cents to make each e-gold "spend" and e-gold itself now earns well over a million USD per annum from spend fees. Thirdly, the use of e-gold as a currency is no longer a novelty, as indicated by the 100,000 spends a day figure.

The number of e-gold accounts (as claimed by e-gold) grew from 1 million in November 2003 to just under 2.5 million in November 2005. That growth rate represents a compound growth rate of 58% per annum. This high growth rate has been sustained by e-gold almost since inception.

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