There have been a number of Digital Gold Currency sites that have come and gone.  Some of them have been more reputable than others.

Two of the most popular are e-gold and GoldMoney.  Essentially, this is how they work.

  1. You sign up for an account.
  2. You load up the account in the precious metal of your choice, if they will deal in that metal, paying for the precious metals with cash/cheque.  Examples are gold, silver, platinum, and palladium.  By far and away, gold and silver are the most common choices.
  3. Account holders can trade with each other, and payment is settled via the DGCs payment system denominated in the metal that you are trading with.
  4. Unlike credit cards that can reverse transactions, once you are paid in this system, you stay paid.
  5. Every gram of gold you own is supposedly physically stored in a vault somewhere.  I am not using the word “supposedly” to insinuate your gold may not be in a vault, it is simply that I don’t know as I have never personally been there.

e-gold has an interesting statistics page. It shows that there are 5,117,038 accounts registered as of this post.

The most enticing thing about the DGC sites is that people can trade with each other using sound money and avoid using using depreciating paper currency.  They can sell their gold for fiat when they need to.  For example, if they need to buy something that cannot be obtained from a trading partner using DGC or when they are forced to pay extortion to the government in the form of taxes.

e-Gold started doing its current business in 2000, and GoldMoney about 2001 – these dates are important as they were at the height of the dot com boom and no-one cared about gold and silver.  Gold hit a bottom of $252.80 US/ounce and silver was at $4.02 US/ounce. Everyone was pursuing paper and companies were being seeded for a shell script they dreamt up the night before and pitched it on PowerPoint.

How things have changed…

The world has become a much more unstable place.  I am not going to go into rewind and iterate WHAT has changed, but bottom line is that we now have rampant inflation.  Inflation that is so large the Federal Reserve stopped publishing M3 in 2006 – a measure of the total money supply.  Government likes to pitch inflation is running at 2-3%, but even mainstream puppets are having a hard time holding a straight face on this one.  It is probably somewhere between 12-15%.

Thanks to the Internet, the monopoly on control of information is being torn away from the mainstream media.  People who care to seek out truth are beginning to find it.  We are still at a point where most people bury their heads in their ass as critical thinking and useful skills have been lobotomized by the State education system.

The folks who think about these things are seeking havens to park their money in something that will yield a return better than inflation, or at least the same rate, or anything so they won’t have their purchasing power stolen from them by the government/banking cartel.

DGCs appeared to offer an excellent way to trade with each other using sound money.   As we watch the US dollar continue its slide into the abyss, more and more people are coming on board inside these systems.  However, there is something else that most of the account holders are aware of after the first few buys and sells.

They are trading with each other outside of the taxation/inflation system! They are actually operating in a Stateless free market! Not only are they not losing 12-15% of their purchasing power, they are preventing the State from siphoning off the fruits of their labour via taxes.  What a bargain!

This is the Joy!  This is what the State truly fears.  The power to tax is the power to destroy the people.  The power to inflate is the path to destroy people.  If the State can’t tax or steal from the people via inflation backed by violence, they have NO power.

The Hurt of th DGCs is that the government will NOT stand idly by and wait for their power to whittle away.  They have already begun to issue propaganda (e.g. FINTRAC and US Department of Justice) that DGCs are harboring “terrorists”, “criminals”, or “child pornography rings”.  Of course, they don’t mention that the vast majority of these things take place in regulated banks, casinos, or other paper money institutions.  The government sure loves to stir up and serve us a great big steaming coiler of shit, don’t they?

Governments will cooperate with each other to raid the DGCs site, arrest the owners, lockdown the servers, sieze the records, locate and terrorize the participants, and issue fines.  Don’t make the mistake of assuming that it is “too costly to arrest and charge them all”.  The government obtains its financing through a printing press (the Federal Reserve).  As long as people let themseves be hypnotized by the State/Media cartel, they will buy any steaming pile of shit the government serves…or ignore it in favour of American Idol.

There might be another idea that would work, but that will come up in a later post…