|
It's funny how every new gold currency company on
the block touts themselves as revolutionizing global commerce by providing
instantly-clearing currency transactions. This claim of having something
new and earthshaking is made by Standard Reserve, GoldMoney, and Pecunix, to
name three.
But really, anybody with a database and a
web-server can do that. All you have to do to do international transfers
of value is get everyone to sign up on OUR system!
It's funny that the companies that make this
claim to be the first, weren't. E-gold beat them to it. The
existence of these new companies DOES bring up the point that e-gold needs
competition for its own good. Competition will force e-gold to provide
even better services to stay number one. The gold currency market will be
much stronger if there are a number of companies with a stake in
it.
But this brings up a problem. The more
digital currencies that come on the market, the more fragmented the market will
become. Merchants are not going to put multiple shopping carts on their
web sites.
The gold currency companies need to get together
and come up with a system that allows one shopping cart to work for all the
digital currencies. There is a system that would allow this. It is
Vince Cate's SAXAS software. (The same software that Vince and Sean were
arguing about the patents to last week.)
No one wants to tie their company down to a
proprietary software system like that either, though. We need a
working group to form an API so that third party vendors, like Vince Cates,
could create software to fit the specs. It would work the same way as HTML
and browser companies. Anyone could make a financial transaction software
that would meet the requirements of the API. This way we all have a
choice.
The gold currency companies need to realize that
they would all benefit by doing this, even e-gold. Here's why: In a
fragmented market, say of 500,000 users, e-gold might have 250,000 users,
GoldMoney 40,000, Standard Reserve 50,000 and so on. Each currency
is limited by this to its own niche market.
By creating a system that allows all of these
currencies to be compatible with each other all of the currencies now have a
market of 500,000 and the users now have a selection of currencies. More
choices give more freedom to the users. A larger market gives each
currency provider a better opportunity to carve out a market niche.
Everyone benefits.
Of course, the largest currency provider,
e-gold, has the least to gain from this; and the smallest new guys on the
block, like Pecunix or GoldMoney gain the most. But the additional
credibility that this type of market would lend to digital gold currencies would
bolster consumer confidence and help to entice more merchants to switch over to
gold currency. So even e-gold, the market leader, stands to benefit
significantly and will get more business from this kind of
arrangement.
Any thoughts?
HK
________________________________________________________________________
You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED] |
