What's stopping people from using GM over USD?

If my friend is also a GM client, it wouldn't make sense to use it like Venmo, right? Because we're transferring GAU based on a volatile spot price.

$20 of beer might be .45 GAU today but tomorrow it could be .50 GAU.

So I wouldn't pay with gold, but is there a way for people to opt out of fiat and use gold as currency for small purchases like this?

When would it make sense? Would goods need to be denominated in GAU?
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Comments

  • RocketDogRocketDog Posts: 590 Silver ✭✭✭✭
    Use the debit card, if you have one. Sell gold when it is a bit higher than you bought it and load your card with dollars. Use the dollars to make small purchases. I think some web stores have an option to Pay with Gold (or used to) not sure about that anymore.
  • GoldNRollGoldNRoll Posts: 131 Bronze ✭✭✭
    @LGJ
    I totally agree with you, I remember the "Pay with gold" button for the Business accounts. Now I keep asking every 3 months when this function will be available for the new holdings and the answer is they're working on it with no ETA.

    @UC_MrPOWRs_iLuv_GOLD
    I struggle to build this online marketplace priced in gold all by my own. I failed n times but I won't give up and it gets better and better:

    Gold'N'Roll

    Look on the gold map on top, the red pins are merchants where you can pay with gold.

    The seller GoldNRoll is me and the T-Shirts that I sell have the same price as 4 months ago when I posted them. My practical experience with pricing products in gold is clear: prices in gold are stable. The gold/USD/EUR ration fluctuations worth less than the time you would spend to edit the product prices.

    I hope soon Gold'N'Roll will display a variety of merchants and buyers so everyone will find online what he's looking for. And I can't wait to integrate it with the "Pay with Goldmoney" widget as soon as GM makes it.
  • UvasUvas Posts: 665 Silver ✭✭✭✭
    I think the capital gains tax is the real show stopper. You still cannot use gold as money. You have to pay capital gains and therefore must keep records. If it was money, you would just use it for your purchase and that would be that.
  • UC_MrPOWRs_iLuv_GOLDUC_MrPOWRs_iLuv_GOLD Posts: 12 Tin ✭
    So how does it work when Josh Crumb pays his rent in gold or businesses do payroll with gold?
    Every party would need a GM account?

    What are the economics behind P2P in terms of frees and fluctuations in gold prices?

    For example, the first BTC transaction was two pizzas for 10K BTC, of course five days later BTC was up 900%.
    So why would you pay with BTC even today?
    And since gold fluctuates in the short run, why is Josh paying rent in gold?

    What is the potential with P2P?
  • GoldNRollGoldNRoll Posts: 131 Bronze ✭✭✭
    @Uvas
    On the capital gains, several US States already legalized gold legal tender and many others will do it soon. I don't know much about the federal taxes.
    In most of the European countries, gold is exempt from taxation. You can exchange gold for products and services. You only have to declare revenue/profit and pay taxes accordingly if you sell the gold for fiat.
    So if I sell T-Shirts for gold, I don't pay any taxes on the gold that I get in my GM holding account.

    @UC_MrPOWRs_iLuv_GOLD
    I don't do short term calculations on the profitability of buying or selling something with gold vs fiat. Fiat wins in most of the cases and I would only hoard gold to protect during crises.
    Instead, I think broadly and for the long term. Gold is much better money than fiat for peace and prosperity. So I use gold as money :smile:
  • GoldNRollGoldNRoll Posts: 131 Bronze ✭✭✭
    @UC_MrPOWRs_iLuv_GOLD
    Also to answer the question "Every party would need a GM account?"

    Gold'N'Roll currently opens business accounts with all major depositories around the world so for example if a buyer with a Goldmoney account wants to buy a product from a merchant with DepositoryX account, they can pay through us. The buyer transfers gold from its Goldmoney account to our Gold'N'Roll account opened with Goldmoney, and we transfer the same gold amount (minus a small, transparent fee) from our DepositoryX account to the merchant's DepositoryX account. Thus the buyer pays to the merchant for the product/service.

    The same way VISA and MasterCard retain a small fee from the merchant accounts that they split with the acquirer bank (the bank of the merchant) for each payment. We would also split the fee with the acquirer depository if they help us to automate the transfer process. For now the only possibility I have is doing both transfers manually :neutral:
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