Mike McNamara wrote: > > At 8:16 PM -0700 4/13/01, Vince Callaway wrote: > > >Real wealth and economic growth is created by providing goods and > >services. As more people insist on being paid with E-Gold the growth of > >the E-Gold economy will continue. Those same people will look for > >merchants that are part of the same community. Those million dollar a day > >spends are likely to be the same dollars being turned over as part of a > >normal healthy economy. > > I totally agree with the fundamentals of what you say but still, to > me, the numbers just don't make any sense! > > Take the last 24 hours... Over 1.4 million in transactions. 4814 > spends in total. That's basically $300 per spend on average. A full > 88 PERCENT (!) of e-gold users couldn't even complete that > transaction if they had THREE TIMES THEIR BALANCE! > > Further, let's say that each spend in the last 24 hours was done by a > unique individuals. There's virtually no chance of that, but let's > pretend anyway. Six tenths of one percent (0.6%) of e-gold users > accounted for 1.4 million in transactions. So that 0.6% of e-gold > users exchanged a full 12% - 13% of all of the e-gold available. > > For what? HYIP's? Books? Exchanges? Gambling? Magazines? > Moreover,basically this happens every single day. Every week or so > the entirety of e-gold's gold wealth changes hands? > > I just find it incredibly hard (impossible) to believe. Perhaps my > math is off... > I remember being surprised how high the e-gold velocity was. The reasons seem to be: 1. e-gold is a poor store of value as it gives no interest and charges a storage fee. People can't wait to exchange it for financial capital with no sotrage fees that pays interest. 2. use for HYIP and money games. 3. use as a pass through currency -- A wants good, B wants Australian Dollars, A has Canadian Dollars, A exchanges Canadian dollars for e-gold, pays B, B exchanges e-gold for Australian Dollars. This may be used as an annonomising step. 4. Tax haven entranceway -- go to the ATM, take out your pay as cash, redeposit in market makers account, get e-gold, invest in offshore/taxhaven programs, tax administrators can't track it. What would be good would be to see the distribution of spends -- value of spends under 50 USD worth, number of spends over 50 USD worth, and work out how much fee revenue e-gold are making. David Hillary --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED]
