Is E-gold Safe?

With e-gold being the primary e-currency used in the hyip arena, one question that we must ask ourselves is: "Is E-gold Safe?" We already have enough to worry about with hyips collapsing on a daily (if not hourly or minutely basis), that we don't need or want to be worrying about our ecurrency being unsafe.



The first big scare for e-gold came in April of 2007 when it was raided and taken offline by the Secret Service. It was also announced that the owners were being charged with operating a money transfer service without proper licensing as well as laundering money. Since the beginning of the trial not too much has happened, but overall it doesn't look all that great for e-gold users. Besides the current unbelievably high exchange rates to deal with e-gold, up to 20% in some cases, e-gold has not fulfilled its promises.


Does anyone remember back when they first came out with the idea of Omnipay Africa. They said that Omnipay would be back online rather quickly and in about 6 weeks (which happened to be about June 2007) that the service would be back online. Despite this claim, Omnipay africa is not yet online, and the only way to cash out your e-gold is if other people want to buy it. Since none of the actual physical gold is being liquidated, all of the money in e-gold is trapped in the system, and exchangers are only able to buy as much e-gold as they are able to sell to their customers.



The verdict: E-gold is dangerous. Though it is a necessity at this point to investing in hyips, I would be happy if the hyip arena would continue its move to a more stable system such as webmoney, or liberty reserve. In the meantime, don't keep too much money in e-gold. Infact, when you fund e-currency, I would recommend funding WMZ (webmoney) and then converting it to e-gold using an automatic exchanger as needed (such as wmirk.ru or roboxchange.com). The main benefits of this are

1. Safety

2. If you exchange with certain exchangers, they will actually pay you to take their e-gold (rather than charging a fee)... So you can make up to about 6% just by exchanging it to e-gold, thus offsetting some of the exchange costs when you have the daunting task of getting it out.



In conclusion, e-gold isn't safe, but its a necessity for the hyip world that we live in. ;)



Mr. Money Man