----- Original Message -----
From: "David Barrington" <[EMAIL PROTECTED]>
To: "e-gold Discussion" <[EMAIL PROTECTED]>
Sent: Saturday, September 08, 2001 11:42 PM
Subject: [e-gold-list] Gold-backed Digital Currency
> Question ???
>
> If the entire world switched to using e-gold today, for all their direct
> debit financial transactions, is there enough "gold" currently available
> to "back it?"
>
<SNIP>
Answer: Yes! But...
It's not going to happen. One currency (or transaction system) will never
have 100 percent market share on financial transactions, and even if
gold-back currencies had 100 percent, other GBCs would have some market
share. Even if e-gold had 100 percent, then other e-metals would be
purchased and used long before all the available gold in the world were
bailed into the e-gold system.
One may calculate the current value of gold against the quantity of gold and
the current value of such transactions conducted worldwide if one has the
data, and claim that there is not enough gold to cover that much money worth
of transactions, but (regardless of the actual quantity of gold or global
direct debit transactions) if all the gold were demanded for these
transactions (that ain't going to happen) then the price would rise
sufficiently to buy all the gold, and *that price* multiplied by the
quantity transacted would be sufficiently high to match the entire world's
direct debit transactions.
Ian Green
http://two-cents-worth.com/?107242
e-gold estas monda mono! [Esperanto]
e-gold is world money! [English]
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Did you know that e-gold Ltd. stores more gold on behalf of customers
than many countries? See http://www.gold.org/Gra/Gra1.htm and the
e-gold Examiner at http://www.e-gold.com/examiner.html for details.
