1mdc
From Wikipedia, the free encyclopedia
1mdc is a digital gold currency (DGC) which was founded in 2001. Similar to other DGCs, 1mdc allows for the instant electronic transfer of gold between user accounts. Unlike other DGC providers 1mdc is backed by the reserves of e-gold, rather than their own physical bullion reserves.
The website appears to switch between various offshore hosting locations, and use software designed by Interesting Software Ltd, an Anguilla company.
[edit] Features
As with any digital gold currency, one can use 1mdc to keep assets away from fiat currencies and avoid inflationary risks associated with them. To open an account, 1mdc only requires the user to have a functioning e-mail address, an e-gold account, a password, initials and a PIN.
1mdc charges 0.05 gold grams per spend for accounts that receive 100 or more spends (total over 500 grams) to their account in any given calendar month. There are no spend fees for accounts that receive 99 or less spends in a calendar month, and no storage fees on all accounts. This is in sharp contrast to e-gold, which charge a storage fee of 1% per annum. Coupled with the quick and easy transfer of funds between e-gold and 1mdc accounts, 1mdc is attractive to persons with large amounts of e-gold, whose balances gradually shrink due to e-gold's storage fees. 1mdc also offers virtually fee free exchange from Pecunix gold to 1mdc, and a 5% fee to exchange from 1mdc to Pecunix gold. It is often said that most or all heavy users of e-gold are 1mdc users, although of course there is no way of confirming this.
[edit] Criticisms
1mdc's e-gold is held in unallocated (pooled) storage (in several e-gold user accounts) which allows for extra privacy from e-gold's administrators. However this increases storage risk, as the client has no precedence on the e-gold they've entrusted 1mdc to hold, and there is virtually no way for a user to ensure that 1mdc is maintaining full reserves of their e-gold. The amount of e-gold held in the 1mdc system is undisclosed.
Also, since 1mdc is backed by e-gold, many things that could affect e-gold could affect 1mdc. If e-gold Ltd. ever became insolvent or was shut down for any reason, 1mdc would be insolvent by default. If e-gold's servers go offline, a 1mdc user can not transfer their gold back to their e-gold account, but they could still transfer gold between 1mdc accounts.
