An Overview of Three Currencies
C-gold was developed in 2007 and became operational in 2008. It is a gold-backed electronic payment system that provides for exchanges denominated in grams of gold. A project of Private Gold Equities Exchange Limited, a Seychelles company, it is fully redeemable for gold. The gold is stored in 12 secure storage location and is audited annually. Much like its predecessor, e-gold, it can be used to make payments from one account to another using its web-based interface.
C-gold is a fully centralised ledger. The only ways to buy C-gold are to bail in a bar of gold acceptable to C-gold’s team, or to buy C-gold from another user. One of the fastest and most reliable ways to buy C-gold is from CentreGold.
All C-gold account holders must comply with the “know your customer” (KYC) and anti-money laundering (AML) procedures of the C-gold system. These can typically be met with state-issued identity documents (ID) and a scanned utility bill.
PerfectMoney is an online payment system. It is a central ledger system, and pre-dates crypto-currencies like Bitcoin. PerfectMoney is not redeemable for gold or other assets.
All customers within the PerfectMoney system are registered with their site. Standard KYC and AML procedures apply. After a year with PerfectMoney your account may be upgraded to Premium at your request. There are also Partner acccounts provided at the discretion of PerfectMoney to certain businesses.
PerfectMoney has excellent reports and charts for your real-time statement. Automated recurring payments can be set up. There is an extensive API for customising your businesses needs in areas like providing a shopping cart interface. PerfectMoney has extensive language support for about 20 languages right now. Their online security uses IP tracking to make sure only the registered user is accessing their account, with two-factor identification through SMS. There is also a CodeCard for additional security.
Bitcoin was developed in 2008 to provide a global public distributed ledger-based system. It has spawned over 1,200 imitators and is now one of the biggest online currencies in the world. Bitcoin isn’t owned by anyone. Think of it like email. Anyone can use it, but there isn’t a single company that is in charge of it.
Bitcoin transactions are irreversible. This means that no one, including banks, or governments can block you from sending or receiving bitcoins with anyone else, anywhere in the world. With this freedom comes the great responsibility of not having any central authority to complain to if something goes wrong. Just like physical cash, don’t let strangers hold your bitcoins for you, and don’t send them to untrustworthy people on the internet.
Like everything, Bitcoin’s price is determined by the laws of supply and demand. Because the supply is limited to 21 million bitcoins, as more people use Bitcoin the increased demand, combined with the fixed supply, will force the price to go up. Because the number of people using Bitcoin in the world is still relatively small, the price of Bitcoin in terms of traditional currency can fluctuate significantly on a daily basis, but will continue to increase as more people start to use it. For example, in early 2011 one Bitcoin was worth less than one USD, but in 2015 one Bitcoin was worth hundreds of USD. Today the price is over US$8,000.
There are several ways to buy Bitcoin, but trusted exchanges are a great way to acquire Bitcoin. Because there are inefficiencies in the traditional banking system, exchanges will sometimes have slightly different prices. If the difference is too great, traders will buy low on one an exchange and sell high on another and close the gap. If an exchange constantly has substantially different prices than others, it is a sign of trouble and that exchange should be avoided. As with everything else, do your research and find an exchange you can trust. It’s also a good idea not to use an exchange as your only wallet.
Bitcoin is not completely anonymous. All Bitcoin transactions are stored on a public ledger known as the blockchain, people might be able to link your identity to a transaction over time. Some companies offer various tools such as Bitcoin mixers to help achieve greater privacy, but it takes a huge amount of effort to use Bitcoin anonymously. You may want to follow your country’s tax regulations regarding Bitcoin in order to avoid trouble with the law, but you have the power not to should you choose to take that risk. To improve privacy, most newer Bitcoin wallets will use a new Bitcoin address each time someone sends bitcoins to you.
Bitcoin transactions are seen by the entire network within a few seconds and are usually recorded into Bitcoin’s world wide ledger called the blockchain, in the next block. While it’s possible that a transaction won’t be confirmed in the next block, in the vast majority of circumstances it is fine to accept a transaction as soon as it has been seen by the network. Unlike traditional payment systems, Bitcoin transactions are lightning fast and can be sent globally. Bitcoin is still relatively new, but with each passing day the technology becomes more reliable. It is more and more unlikely that a major bug will emerge in the system as time goes by, and people can trust the technology more with the passing of time. Each day people transact billions of dollars worth of Bitcoin.