30/01/2017
Michelle Mining Pipcoin:
Digital Currency
Digital currency or digital money is an electronic-based medium of exchange that is similar to physical currency, except that it allows for instantaneous transactions and borderless transfer-of-ownership. Both virtual currencies and crypto currencies are types of digital currency. Like traditional money, these currencies may be used to buy physical goods and services, but could also be restricted to certain communities like online gaming, social networks or pyramid schemes.
Digital currency still requires verification of legitimate transactions. This is the primary service provided by banks when dealing with traditional government-issued currencies.
One of the largest digital currencies is the US dollar that is 96% held and managed electronically in computer systems with no physical paper currency.
Digital currencies such as Bitcoin are known as “decentralized digital currencies” with no central control over the money supply or the transactions.
Virtual Currency
Virtual currency is a form of digital currency that is controlled by a centralized company. Virtual currencies have been around for a long time. Virtual currency is purchased or earned with fiat money, but is restricted for use in a private community. The Amazon Coin is an example of a virtual currency that only has value at Amazon. Amazon is free to establish and change the value and use of an Amazon Coin at its whim.
Virtual currency transactions are verified by the centralized issuing company to ensure that the currency is legitimately used and not redeemed multiple times.
Another example of virtual currency in the real world is frequent flyer miles issued by a specific airline for using fiat money, but usable only at that airline. Most large merchants and department stores have customer loyalty programs, which are also forms of virtual currency. Their loyalty “points” are controlled and redeemable only at the issuing company. Some companies are claiming to offer crypto currency when in fact, they just have a private virtual currency. So what is real crypto currency?
Crypto Currency
Crypto currency is a revolutionary peer-to-peer electronic cash system that can protect consumer anonymity and prevent government intrusion. It successfully addresses worldwide concerns with the current financial system’s inefficiencies, exorbitant fees, uncontrolled inflation and big-brother oversights. Crypto currency is owned by the people and no government, bank or company can control it. Crypto currency is public and protected by the network of owners who verify every transaction. Crypto currency is the people’s financial system, a true financial democracy.
Crypto currency transactions are verified by a decentralized technology network, secured by cryptography and consensus. No central authority is needed to verify transactions; no governments, no banks and no companies. Technology replaces the central authority and no one can change the technology without majority consensus of the entire decentralized network. All transactions are stored in a public ledger called the blockchain and are publicly viewable by everyone.
