Electronic currencies are stored in banks electronically. This is one of the basic explanations for digital currency or also known as cryptocurrency. Given the fact that 80 percent of world’s currency is still using paper money, most of it is stored in banks and has a digital counterpart. Right from the time it was introduced, it evolved from being used to conduct business, to the main channel of e-commerce. Well, it seems that nothing can stop its evolution and serve an all-new purpose of using digital currency.
Believe it or not, the very first cryptocurrency ever created was on the time when internet is revolutionizing back in the onset of New Millennium.
It’s coined as E-Gold which was founded by Gold & Silver Reserve Inc. in 1996.
This has enabled users to electronically transfer small value of gold. Then come the spring of 2000, it has become the very first electronic currency to provide exchange service among other countries.
Couple of years prior to the launching of PayPal, it was able to snatch over a million accounts. Then in 2006, Liberty Reserve lets it client to start converting their Dollars or Euros to Liberty Reserve money. Sad thing is, it wasn’t that long before goons and dishonest individuals discovered this method and take advantage of it to make shady transactions online. Thus, the US Government had to shut down websites that are offering these types of services.
Differences Between Cryptocurrencies, Digital and Virtual Currencies
While increasing number of banks are starting to realize the advantages of electronic banking, virtual currencies are operating as an independent money to which the value is made by original backer. On the other hand, you ought to know that virtual currencies have different forms and among the most famous is Bitcoin. It’s funny because it doesn’t fit any specification or category and instead, it encompasses aspects of all 3 forms of electronic currency.
Digital currency is different since this is a type of money backed up by assets with worth that’s equivalent to real world value. The fact that world’s money is stored in computers as digital money, it can be said that most of the world’s currency has gone digital.
Strengthening the Foundation of Knowledge in Cryptocurrency
Cryptocurrency is a form of electronic money to which every transaction are encrypted and decrypted to push through. It uses block chains in order to store data and link together effectively as it function as ledgers and promotes consistent data monitoring. Aside from transferring encrypted cryptocurrencies, there are many functions associated to it as well. For one, it can be used as a form of investment like trading in VIPsignals crypto as if you’re trading using real money in stocks.
