In the current financial world, one of the most used words is cryptocurrency. When you open any financial or economic news outlet, the first news that will greet you will be something about the cryptocurrencies. There are many of them at the moment, and they have become a great medium of transaction, especially when it comes to business moves that need perfect encryption. When it comes to investments, many people have actually invested in the cryptocurrencies, waiting for the time it will be right for them to recoup.
However, many people, even those who invest in it, and those who play the best online live casino uk with it still have not come to terms with what it really is. So, we will take a look at the difference between cryptocurrency and the real money.
The simple explanation is that it is a digital exchange unit that could be used to carry out transactions in a peer to peer, digital and decentralized manner. Allegedly created by a person with a Japanese pseudonym Satoshi Nakamoto in 2009, it could only be described as a virtual currency.
The block chains that are used to carry out the transactions are registered and owned by users, and not by any central body, and the money is stored in what is known as electronic wallet. The wallets are digital and not the type we use for our physical money. The wallets however, could be stored in several places, including a computer set, phones, website, on the cloud or server, and on a small paper.
While these currencies has been there for long, the popularity soared when people started using them to carry out transactions in place of real money like payment for starspins mobile bankrolls, and commodity currencies like silver, gold and diamond.
- The difference between the cryptocurrency and the real money includes the fact that while the bank and governments control the real money, cryptocurrencies are not controlled by any singular body. Anybody can sell his or her own as they wish, and people can decide the worth of theirs when they want to purchase with it.
- Again, while the number of cryptocurrencies that could be mined or generated is limited, any amount of real money could be generated by the banks. Yes, central banks of countries can print and mint as much as they want in real money. It all depends on how much control they want over the financial world.
- Cryptocurreny transactions could be viewed, but because they are all digital transactions, you won’t ever see the name of the person that is sending the money or receiving it. This is because everything is digitalized. But transactions with real money in the real world cannot be anonymous and could be easily traced.
- Nobody can force anybody to pay with cryptocurrencies, and once payments are released and completed, the transactions can never be reversed. However, people could be forced to pay as the real banks and governments deem fit, and transactions could be reversed as easily as possible.
- Cyptocurrency transactions are actually made with little or no charges or fees. When you want to make a transaction with cryptocurrency, no one can stop you because it is between you and the machines. But when banks have reasons, they can stop all the transactions they deem fit. When they do, you can’t even do anything about it.
- This type of money helps the owner’s worth to be unknown because no one sees the amount in your wallet and the location of the wallet. But real money is mostly held in the bank. When this happens, both the bank and government will always know your worth. No one uses the safe or stores money in their homes anymore.