What is e-currency and why do we want it?

e-currency is also called electronic money, digital money or digital currencies. Obviously the 'electronic' part of the name refers to a digital system (computers) for sending and receiving money. 

Most online opportunities use some sort of e-currency for transfers in and out. You don't see much 'normal' payment systems used for a variety of reasons. Don't be alarmed if you see that an online opportunity does not accept Bank wires, checques, cash deposits etc, there is a good reason for that. 

Bank wires are usually costly, time consuming and it can be a hassle to do international transfers. Ideally you would like to have an instant payment system with low fees and no boundaries. That is where the e-currencies come in.

You're probably already using electronic money that is virtual

Just for the record, in principle our 'normal' banking system is a pure electronic system so we're already using electronic money. There is really no good reason why a money transfer, which is an electronic transaction, has to take days, sometimes weeks to complete. Also, our money itself is more or less virtual money. Let me explain what I mean with that.

If everybody would run to the bank and cash their money we'd have a major problem. You see, there wouldn't be enough money in the banks vault to cover the cash demand. But even if there was... what would it be worth? Money itself is simply paper with ink on it which has close to none intrinsic value. It is the value that it represents that counts. So printing money, which by itself is easy, isn't 'real' money. It is a virtual value. Sort of an I-O-U (I owe you) system if you will.

Paper money is worthless unless it's backed by something with intrinsic value

Money is only really worth something if it is backed by something with intrinsic value. Gold for example, or silver, diamonds, platinum etc. Unfortunately, the currencies we use are not fully backed so when push comes to shovel your money is worthless.

You know it's true because our money depreciates. A dollar today does not represent the same value it represented 50 years ago. But did you know that an ounce of gold today pretty much buys you the same as it did 200 years ago? It will still buy you a nice suit or a pair of shoes, just like it did decades ago. 

With that said it is not surprising that people seek other payment systems. Less expensive, faster and preferrably backed by gold or another commodity, although that is not required for online payment systems.

Referral programs

Most e-currencies have some sort of referral program. Referral programs cause viral expansion, just what they need. Continuety and profit is in numbers so the more the merrier. Some pay 1% of transaction fees made by your referrals, others offer up to 30%. If you're a networker you'll want to get your referrer link out there.

In this section we'll discuss several electronic payments systems.

Watch out for scams and a word of advise

A warning is in place. History shows that e-currencies come and go. Some have been here for many years, registered and licensed, but others were not. Some seasoned investors will remember Osgold, Evocash, DX-Gold etc. There have been numerous 'e-currencies' that turned out to be scammers just after your money. Other e-currencies were wrapped up by a government for one reason or another, e-bullion for example. 

Although I love to use e-currencies for their real-time and cheap transfers, I wouldn't put a lot of my money in them for the reasons mentioned above. You just never know what will happen tomorrow. So use their systems all you want, but use them wisely!