May 28, 2007

E-gold reviewed (part 2)


* Intro and e-gold review 2 (0:00 - 0:54)

* Debate and conversation background (0:55 - 1:20)

* Pros and cons with e-gold (1:21 - 3:56)

* e-gold recommendations and wrap up (3:57 - 4:47)



For those of you have read my original review on e-gold, you would have found that I am not a big advocate for e-gold as an investment; a popular online currency that is backed by gold. If you have missed my original review and are interested in reading about it, you can read it by clicking here.

I have considered my first review quite extensive, however after a recent debate with another user who is an advocate and uses e-gold under a day to day transaction I have decided to continue to dig into the topic of e-gold as I have learned new information about it. Some of the major topics which I felt are fundamentally flawed with e-gold can be found with the video today.

The biggest hole that I've found with e-gold through my conversation with the gentleman is that e-gold is aiming to become a legitimate digital currency. As e-gold is backed by gold, if its aim is for security and not investment then why would anyone secure themselves in e-gold? If it becomes a digital currency, then what will it backed by then? Besides e-gold, there are many digital currencies who also claims to be the most popular. How would you then distinguish the differences of the two beside the backing of gold for e-gold? What if e-gold ends up closing its doors to its investors and declares bankrupcy? What securities would the investor have instead of a piece of solid gold or a number according to e-gold? There are just seem to be many loop holes where e-gold has yet to explain and it's always smart to becareful then be sorry.

After our conversation, it has only affirmed my recoomendation to my viewers in e-gold to not invest. Unless you have already a huge vasted investment in e-gold or a deep understanding of gold I would recommend staying put and see what happens. That is the right way to make money smart!

-Swapw
"Making money smart"

Beneath is my conversation and debate with the gentleman, hopefully you find it informative and useful.

User (15 hours ago) marked as spam
You're not completely accurate on egold. Our company and affiliates and associates have been legally using e-gold since 1996. eGold is extremely popular in certain internet related arenas, not all illegal, contrary to the belief of many. It's a mistake to not point out that most ACTIVE egold users buy & sell using third party exchangers (eCurrencyExchangers -com) who convert it to other digital currencies or cash (check, bank wires, etc.).
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swapw (11 hours ago) marked as spam
Actually, this is a point that I did point out in my video. Many viewers would agree jumping into something that is "popular" may not be something that's profitable or even accurate.
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User (15 hours ago) marked as spam
Almost NO ONE BAILS OUT (redeems for gold), & they mostly enjoy the idea of their holdings being backed by value instead of just numbers on the screen. You point out that e-gold transactions are final. This is an important reason why quite a number of businesses (including some well establish web hosting companies) accept e-gold.
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swapw (11 hours ago) marked as spam
Your point is exactly why it's very dangerous. Since it is an institution without FDIC insurance, it can close down its' doors at anytime and users cannot be warranted in their securities. This type of story or scheme is just too common shown on TV everday.
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User (10 hours ago) marked as spam
No sir. Your point in misconstrued. E-gold is neither Bank, check cashing agency, or Money service business. e-gold is, by slang, a new breed "digital currency" and by function, a debit/credit accounting system whose value is based intrinsically on Gold. FDIC insurance is irrelevant. Banks are FDIC insured, but is the U.S. federal reserve? Research before reply. Over inflated, much indebted, fiat U.S. dollar used to be Gold back too. What happened?
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User (9 hours ago) marked as spam
New Comment (Pending Approval)The U.S. dollar is fiat - not backed. FDIC covers up to $100,000 usd for BANK failures. Not private business. Paypal, a money service business, holdings in U.S. Banks are backed to this amount. Nothing else. Paypal is not a DIGITAL CURRENCY. You need to understand the difference. I could lose 1 million invested in ebay with no recourse, at anytime. The only thing that makes ebay a bad investment is it's viability. egold is very viable.
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swapw (4 hours ago) marked as spam
I would like to follow-up by a point by point reasoning. Before we can pin point e-gold as a digital currency we have to first look into gold itself. Gold is only as valuable as any commodity that people perceive it to be, as newer generations abandoning the values of the old gold is not perceived as an equivalent value to anyone today.
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swapw (4 hours ago) marked as spam
If the viewer's value in gold means nothing, then e-gold would prove to be meaningless. A digital currency that is based on a fab trend of hype on gold is to be highly cautious.
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swapw (4 hours ago) marked as spam
That is not to mention there are other forms of digital currency that are available. It is open to debate whether e-gold would be proved supreme while a "defined" digital currency has yet to be determined. In the meanwhile, it still runs the risk as fraud if it decides to close its doors one day. If you are in the e-gold business, you would an expert at gold which is an asset. Like gold, to make money through it is not as flexible and you would be aiming for a long term solution.
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swapw (4 hours ago) marked as spam
Unless it is liquid it would fall under my video's comment as "unless you are deeply into gold as an investment, I would highly suggest not jumping into it."
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User (15 hours ago) marked as spam
and finally, many users have gotten paypal to reverse charges, thus cheating the hosting company out of payment/services. So there are pros and cons on BOTH ends, and in the end all parties should be doing their due diligence and not letting the payment service be the judge.
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swapw (11 hours ago) marked as spam
I'm not too sure if you are familiar with payment services of Paypal. If they examine only one side, I would then not recommend it. However, due to its reliability and its solution to situational examination from both sides it has proved to be a more popular security. Not to mention that it provides users interests as suppose to E-gold who doesn't.
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User (10 hours ago) marked as spam
No? Well let me assure you: a) Paypal was weaned from lies and deceit at it's user's expense, which their enormous initial debt. Perhaps they will tell you the truth. b) We experienced this 1st hand, and it had nothing to do with their honesty. BUt all is well, as this was business, and nothing personal to me. And again, paypal is a Money Transmittal service, not an electronic ecurrency - or threat to fiat (unbacked) hard currency.
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User (9 hours ago) marked as spam
We understand paypal well. EXPERIENCE. Fundamental difference is that egold is intended to be an digital currency. Paypal is a money service business. The US DOJ has valid concern , but not what you think. A different threat. egold has numerous times applied for licensing & been denied. egold can't touch the fraud of the credit card industry. Jackson created something the U.S. was originally based on, but is lost amongst the sleeping. Some are convinced that the USA is the new Old England.
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swapw (3 hours ago) marked as spam
I would like to close our debate as this. Before anything like E-gold should be looked at, each individual should seriously examine the value of gold.
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swapw (3 hours ago) marked as spam
If you believe gold would be the currency of tomorrow and that it will appreciate in value, invest by any means. However, if you think otherwise like I do then I would suggest a continuation of your current investments.
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swapw (3 hours ago) marked as spam
Remember, it's never too late to jump in later then to be sorry always. Good luck with all of your investments.-Swapw
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User (3 hours ago) marked as spam
I actually agree with you on both points, more on the 1st point. If treat your egold holdings as an investment then you SHOULD consider the underlying gold price. If you are doing quick purchasing transactions with merchants that give discounts for using egold or if you are a merchant entertaining all forms of payments (like us) then egold is what it is. Simply another form of payment. By the way, visa charges us 3% and we exchange egold for 1%.
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User (3 hours ago) marked as spam
And no. The 3% does protect us from visa doing a charge back when it is found that the card was stolen, and they never catch the thief...
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User (3 hours ago) marked as spam
I mean: The 3% does >NOT< color="#3333ff">(Reply) (Remove) (Block User) (Spam)


User (3 hours ago) marked as spam
Perhaps you are speaking more to someone who seems to be your specific audience (mentioning your blog), but I've only commented that you did not paint the full picture of egold's use. You propose and perhaps get others to presume that e-gold is an Investment when if you examine the world of the common egold user, and the history of egold's founder and promoting itself, it is put forth mostly as a method of irrevocable and private transacting (in line with eff dot org's goal for privacy).
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2 comments:

Francis Simisim said...

Thanks a lot Swapw, your link is up on mine too. Appreciate the support bro

Francis Simisim
http://soshallwe.blogspot.com

Juri said...

Hi,

Add Your Blog to Buy4eGold.com. This Directory is Free to all Blogs and Sites about e-Gold. List it under "Blogs" Please.