Digital Gold Currencies

Digital gold currencies are a type of money used by private companies as a form of exchange currency. They provide the same security against inflation as real gold does.

This form of currency is used by private companies because it can be purchased in quasi-infinite amounts. Real gold bars and coins are limited and are not as accessible as Digital gold currencies. The latter is therefore, a good substitute for money and gold.

The nature of digital gold currency

According to companies which provide this type of e-currency, digital gold currencies do not fall directly into the scope of global economy. It is therefore, independent of political influence. This may be very attractive for companies of the private sector, because if they possess such assets, they will generally be protected from devaluation of money and inflation.

Disadvantages of the digital currency

The main disadvantage of digital gold currencies is that the transactions using this type of currency are not refundable or reversible. This aspect of digital gold currency makes it more similar to cash money. For example, cash can very hardly be regained if it is used to buy a faulty or illegal product whereas credit can. Digital gold currency is comparable to cash and credit to currency, which is stored on websites like PayPal.

Digital gold currency as an asset for corporations

Digital gold currencies are a good money substitute for large companies and corporations. They decrease the probable loss that is incurred throughout the years. The currency keeps its value and is not controlled or issued by the government.

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