A form of online currency like Paypal.
eGold is based on Gold prices. For example if I paid you $367 worth of egold for a product I bought off you, then you would have that much in the account which also shows how much Gold you have to.
Eg. If you have $367 and gold was trading at $367 per Oz then you would have 1 Oz of gold.
If the price of gold went up to $370 so will your gold price.
I have seen people actually make money off this (Kind of Like Interest).
Yes same here, only ever encountered it as a youngun' as an alternative payment method to Paypal. I hear that money laundering through E-gold is quite common.