What is so good about Digital Currency?

Find out what all the fuss is about. What is so good about Digital Currency?

There are generally two types of Digital Currency. One is backed by precious metal, the other is backed by fiat currency (e.g. USD). Digital Currency backed by USD or other fiat currencies are cost effective and fast ways of sending funds internationally. One electronic unit usually equals one US dollar (or equivalent) and systems like Global Digital Pay and Liberty Reserve are quite self explanatory as they are a simple method of transferring funds from one account to another to pay for goods and services.

Below we explain the metrics of Digital Currency backed by precious metal.

The advantages of Digital Currency are that you can own a holding of Gold at lower affordable entry levels compared to using a physical bullion trader. Also as it can be used as a trading tool, it is cheaper and easier to trade internationally. To summarise, you can use Digital Gold as a precious metal investment, or utilise it to pay for goods and services (or both!).

Funds in a bullion backed Digital Gold account are based on the market value of the price of gold and your holding is stored in weight (grams or ounces). This means it is an easy method to invest in precious metals and follow the price on the International bullion markets. Also, as you can additionally use Digital Gold as a form of currency, for convenience you can have its value associated to a major fiat currency. So to buy a $30 DVD on the Internet would cost you '$30 worth of gold'. You can pay in dollars worth or Euros worth or GBP worth etc, even though it is the weight of metal that is the real value. The transfer of Digital Gold takes seconds from one account to another.

Check out our Resource Center for more information on Digital Currency and the world of digital money.

 

 

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