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View Full Version : I Don't Understand The Theory Behind E-Gold

Shadowplay
Nov 12th 2007, 10:47 am
I read their "What Is E-Gold" page and I'm still unclear how they operate. All I know is they store gold bullion somewhere as their reserve. Seriously, how does this whole thing work? I think what most confuses me is that gold is worth different prices in each country. So can't a system like this be gamed by someone who lives in a country in which gold isn't worth that much?
Hellfire81
Nov 12th 2007, 2:16 pm
I read their "What Is E-Gold" page and I'm still unclear how they operate. All I know is they store gold bullion somewhere as their reserve. Seriously, how does this whole thing work? I think what most confuses me is that gold is worth different prices in each country. So can't a system like this be gamed by someone who lives in a country in which gold isn't worth that much?


About how e-gold works: they store as much gold bullions as e-gold is in circulation. Your e-gold balance grows or becomes less with the actual gold price so maybe today you got 500$, tomorrow then 505$ or maybe 495$.

I don´t know about the different gold prices in different countries but I don´t think so.
WMNZ
Nov 12th 2007, 3:13 pm
The value of gold is the same in every country, it's just represented differently by the local currency.

The idea of GDC's is that you hold a balance of gold and the dollar amount shown for your account is just however much the gold is worth at the time in the currency you've chosen to display it in.