Differentiate among virtual currency, cryptocurrency and digital money
Recently, “virtual currency” is becoming more popular and “hot” in currency market. Therefore, there are a lot of people wanting to “play” the currency. However, many people are still misunderstanding the terms “virtual currency” and “digital money”, they often used to confuse and replace them with each other which make them get difficult in using and “playing” as well. Therefore, the post will introduce and differentiate among these currencies as well as having some crypto reviews through vkool.com
The reality of virtual currency and crypto currency is a form of digital money, but the opposite is not true – digital money is not real money. Similarly, crypto currency such as Bitcoin is another form of digital money, but it is a separate category when compared to virtual currency. Besides that there are also other forms of digital money, we only analyze the virtual currency, crypto currency and digital money in general.
- What is Digital money?
Digital money is like its name. It means that currency is stored and electronically circulated. Any currency encoded by 1 and 0 fulfills this definition. You can see a comparative example to clarify, a dollar stored in a bank account is considered to represent the actual dollar held by someone, whereas the “physical” co-bitcoin represents the same and its corresponding digital version. One might argue that society is becoming less and less cash, all of which are gradually digitizing, sometimes referred to as “electronic money” but they are not, in fact, the same are still representing the paper money.
Precious digital money has appeared before. One of the earliest E-gold coins appeared in 1996 and was secured in gold. Another popular digital money transaction is Liberty Reserve, which appeared in 2006 – users can convert dollars or euros into dollars or euros, then, trade freely with others for a 1 %. In fact, both services are centralized and often used for money laundering therefore likely to be closed by the US government. After that online payment services such as PayPal which was established in 1998 is operated in a similar way and secured by traditional currencies, except that the service is more limited and complies with government regulations to help its existence.
- What is virtual currency?
We can define “virtual” as “non-material real” and virtual currency is not intended for use in “real world” or real estate spending. In other words, they are just toys. Most virtual currencies are in the form of centralized. It means controlling the supply of money in the hands of the developers of the virtual world. Whereas digital money is used to buy goods and services that are available at all times, for example, you can place your products through PayPal. Bitcoin was once considered an “Internet currency” but now you can use it directly in real life outlets. This makes Bitcoin look like a traditional coin and makes them “real”. In fact, Cryptocurrency is created to afford a replacement for cash and nothing in it.
- What is Crypto currency?
When analyzing about Crypto Currency, you don’t forget to read carefully Crypto reviews of Vkool to understand more about feature of the currency. Furthermore, the factor that distinguishes crypto currency like Bitcoin from other digital coin is decentralized. In fact, you should remember that no centralized center such as a group of game developers has the right to control the money supply. While virtual currency developers can control their preferences (or make them disappear altogether), Bitcoin runs on peer-to-peer networks, which agree on similar standards.
As Crypto reviews said that unlike other centralized currencies, Bitcoin is dug in math controlled proportions, and supplies depend only on the needs of the free market. This is also a factor distinguishing Bitcoin from traditional currencies such as the dollar that needs to follow the central bank’s decision. Crypto currency also makes them more anonymous compared to any real money or virtual currency as they are tracked by the bank or developer.
Boundary is fading in the monetary world. As banks have ubiquitous online banking, physical money is becoming more and more ancient. Electronic money has taken over, but digital money is taking a step further. For the first time in history, people are thinking about the concept of numbers or the value of that money instead of coins, paper or invoice. Furthermore, once people realize that the core of “cash” in the world exists in the bank’s computers without any guarantee of value; they will no longer see a significant difference between traditional money and electronic money. However, in order to get fail ỏ waste “real” money when “playing” the currency, you should read and understand crypto reviews carefully to make sure that you understand about virtual currency as well as experiences about them.
