Difference Between Cryptocurrency, Digital Currency, And Virtual Currency?

Cryptocurrency

Cryptocurrency is a kind of digital currency. It is an asset that is used as a means of exchange and is considered reliable, because it is based on cryptography.

One of the main goals of cryptography is the safe exchange of data. Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems.

Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency.

Digital Currency

Digital currency is a money that is used by the Internet which is recorded electronically on a stored-value card or other devices.

The digital currency does not have geographic or political boundaries: money from the electronic wallet can be sent from anywhere and anywhere.

Digital money exists only in a virtual format, they do not have a physical equivalent in the real world. Nevertheless, they have all the characteristics of traditional money. Like classical money, they can be received, translated or exchanged for another currency.

They can also pay for goods and services – for example, mobile communications, the Internet, bills in online stores and so on.

Virtual currency

Virtual currency, or virtual money, is a type of unregulated, digital money, which is issued and usually controlled by its developers and used and accepted among the members of a specific virtual community.

It is a digital representation of value that is neither issued by a central bank or a public authority, nor necessarily attached to a fiat currency, but is accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically.

Virtual currency is neither issued by the government nor is it regulated by the government. Virtual currencies can be used for transaction in apps and games and are issued by the developers.

They do not hold any real value and can only be used digitally, i.e, they cannot be converted to fiat currency (digital or physical form).

virtual currency is essentially a toy. As the word virtual suggests, this currency is not meant for use in real life.

Digital Currency Cryptocurrency
Form of payment that exists purely in an electronic form and is not material like a dollar bill or a coin. Form of digital currency used for exchange and is considered reliable, because it is based on cryptography.
Transferred between the participants involved over the world wide web. Doesn’t involve any third parties like banks or the government between the two parties concerned.
Centralized – Certain group of people and network of computers that monitor network transactions. Decentralized – Rules are established by the majority of members of the crypto community.
Opaque – You can not choose a wallet address and see all money orders, this information is confidential.

Transparent – you can see the list of transactions of any user since all revenue streams are placed in a public chain.

Can cancel or freeze the transaction at the request of the participant or authorities, as well as on suspicion of fraud or money laundering. Transparent – you can see the list of transactions of any user since all revenue streams are placed in a public chain.

To use the digital currency you need to identify the user.

To buy or invest the cryptocurrency, nothing is required. every transaction is registered and can be tracked.

 

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