I'm going to resolve a glaring misconception that I've seen run rampant in various forums for at least the last two years.
A DXMerchant, acting as an exchange agent, has to have reserves of various digital currencies in their accounts, in order to process OutX requests within the DXSystem.
Some background reading material: http://en.wikipedia.org/wiki/Digital_gold_currency_exchanges http://en.wikipedia.org/wiki/Digital_gold_currency http://en.wikipedia.org/wiki/Currency_exchange http://en.wikipedia.org/wiki/Exchange_rate I find it very interesting that people fail to take into consideration where DXMerchants get the funds to process OutX's. Too many people think
source of digital currency that a DXMerchant gets comes from AutoInX's to their Merchant Console, whereby the DXSystem gives the DXUser making the InX the digital currency account # of the DXMerchant that they are to send their digital currency to, and that DXUser gets DXG off of that DXMerchant's Console in exchange. What I described above is only ONE OF THREE ways that DXMerchant gets digital currency into their accounts to use as reserves to process OutX requests within the DXSystem.
Here are the other two ways: 1)
A DXMerchant is running a business
, online or off, selling products and services
, and taking all or a portion of the funds generated to process OutX requests. 2)
A DXMerchant borrows funds from third parties, for a fee, to use to process OutX requests, and makes arrangements to pay those funds back.
I wonder sometimes if anyone ever asks where the London Gold Exchange, the Bullion Exchange, AutoCambist, etc... gets their reserves of national and digital currencies in order to process exchange requests. The bottom line is this:
The most consistent source of funds for DXMerchants to process OutX requests with, would be from the proceeds of a business that they are running, selling products and services
, which could be supplemented by funds that they may borrow
from time to time.
AutoInX's to the Merchant Console, whereby a DXMerchant gets digital currency sent to their account, in exchange for the DXGold on their Float being sent to the Incoming Balance of the DXUser, only takes place when that DXUser makes an InX of funds into the DXSystem.
How often this takes place depends on a variety of differnet factors, but this should NEVER be depended upon as the SOLE SOURCE of digital currency for the DXMerchant to process OutX requests
with on their Merchant Console.