So we have all watched the recent general decline of the number of different e-currencies and digital gold currencies. We are all now down to very few viable options with the major appearing to be Liberty Reserve. This is obviously also having a pretty marked impact on the exchngers business if you consider the fact that many larger named exchanges have exited the business over the last 12 months.
So what do you all consider as being the primary reasons for the current state of decline?
* Government Intervention (Mainly U.S)
* Reduced number of HYIP's pulling in new e-currency users
* Economic downturn
*Consolidation within the currency industry (although im yet to see much evidence)
It would appear that the number of Large HYIPS have been in decline for a while and it was always a fact that this drove alot of demand in the DGC industry. Could this possibly be a major reason to the current state of affairs?
I would have to believe that if the volume of business was still in-tact and that it was solely the US govenment stamping this type of industry out, that new currencies would be starting up fairly steadily. But It would seem that there really hasnt been any stand-out replacement for e-gold to date (except for liberty reserve) and that the DGC market has shrunk pretty significantly.
So what does everyone think? Time for a massive new Gold Backed Currency? Further consolidation in the market? U.S govt stamping out most of the industry? Too many people scammed/burned by DGC and now refuse to participate in the marketplace?
Well the first one knocked out by far the two biggest currencies in the industry. I don't know much about the 2nd as far as the decline in that industry. I do think the high fees to get in and out of these currencies makes it more difficult. Just about anything except wires requires at least 4% each way. So for any quick turnaround transactions you are looking at least 8% and for Moneygram and Western Union which are good options for privacy you are looking at around 12% roundtrip at a minimum from what I can tell. Why is it these guys never take any direct funding like e-bullion used to?
So for any quick turnaround transactions you are looking at least 8% and for Moneygram and Western Union which are good options for privacy you are looking at around 12% roundtrip at a minimum from what I can tell.
Negotiating 5% or lower for a WU/MG exchange, in or out, is quite common.
Quote:
Originally Posted by blackjackvegas
Why is it these guys never take any direct funding like e-bullion used to?
Goldfinger accepted direct funding, not E-Bullion. Goldfinger was an exchanger... though run by the same folks as E-Bullion, similar to Omnipay and E-Gold. Many exchangers currently accept direct funding. I can name 17 of them off the top of my head.
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Negotiating 5% or lower for a WU/MG exchange, in or out, is quite common.
Goldfinger accepted direct funding, not E-Bullion. Goldfinger was an exchanger... though run by the same folks as E-Bullion, similar to Omnipay and E-Gold. Many exchangers currently accept direct funding. I can name 17 of them off the top of my head.
Well, I was going by the published rates on most of the more popular exchangers listed on LR and C-gold. Perhaps you can identify the exchangers that will do an in and out exchange for lower than 5% including the WU/MG fee? It would seem to me that if you had many different people sending money to you that it would be hard to get the same rate for everybody.
Exchangers accepting direct funding doesn't mean anything because you are still paying the exchange fee. I was talking about directly buying from the e-currency.
Perhaps you can identify the exchangers that will do an in and out exchange for lower than 5% including the WU/MG fee?
M-Gold.com, eCashWorldCard.com, ExchangesPlus, etc.
Quote:
Originally Posted by blackjackvegas
It would seem to me that if you had many different people sending money to you that it would be hard to get the same rate for everybody.
Why is that?
__________________ VFS Network - The first and largest network of Exchangers and E-Currencies. "The definition of insanity is doing the same thing over and over and expecting different results." -Benjamin Franklin
M-Gold.com, eCashWorldCard.com, ExchangesPlus, etc.
Why is that?
None of the exchangers you mentioned comes even close to offering an advertised rate that would be 5% total for both an in and out exchange. So my point that high fees are a deterrent for the average user remains unchanged.
Why is it these guys never take any direct funding like e-bullion used to?
Perfect Money does offer direct funding from the beginning, and their fees are very reasonable. For example they don't charge any fees for funding your account.
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Perfect Money does offer direct funding from the beginning, and their fees are very reasonable. For example they don't charge any fees for funding your account.
Yes, perfect money does offer wires. I don't understand their business model though. Their system has no fees and they are offering 7% interest a year. I don't see where their system generates any money to pay their bills. hmmm
The high cost of getting money into a currency probably is the greatest deterrent to new users of these currencies.
Driving seasoned users out of DGCs is the instability of them lately. Once you weed out the scams, you're left with currencies that have instituted draconian policies that restrict their use. Take Webmoney, for instance. That currency is so useless now. Your account and money gets seized because you exchanged into or out of another DGC. Stupid! Don't want my business? OK, bye.
The high cost of getting money into a currency probably is the greatest deterrent to new users of these currencies.
Driving seasoned users out of DGCs is the instability of them lately. Once you weed out the scams, you're left with currencies that have instituted draconian policies that restrict their use. Take Webmoney, for instance. That currency is so useless now. Your account and money gets seized because you exchanged into or out of another DGC. Stupid! Don't want my business? OK, bye.
I agree the high fees although understandable have to be a limiting factor. The market now is more for privacy than economic efficiency.
Decline of E-Currencies
Hybrid Mode
