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Electronic Currencies, Definition: Digital currency based on and…
Electronic Currencies
Cryptocurrency
Definition: Online currency that is intangible and is designed to be a medium of monetary exchange through a computer. It is independent from banks, government or a governing body that maintains control over the currency.
Advantages: 1) No need to pay charge when making transitions. 2) You can invest in bitcoin; buy it cheap and sell it high. 3) Very hard to make counterfeit due to all its security features.
Disadvantages: 1) Provides anonymity allowing for criminal activities as they can go untraced. 2) If you get robbed; you got robbed. No bank to pay you for your loss.
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Digital Currency
Definition: Digital currency is a method of payment that exchanges money digitally through computers. It is often referred to as having an electronic wallet.
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Examples
The most common are payments using credit cards such as through credit cards, mobile phones and smart watches
Data is stored in the card that contains information required to locate the user's bank account and is then read by the computer. The business can then request that the correct sum of money is deducted from the user's bank account and sent to the business's account
Credit cards are used with machines that allow the magnetic stripe to be swiped, the chip to be read, or by touching the card to a computer through a method called contactless payment
Virtual Currency
Virtual currency is a type of digital currency where it is a decentralised system which does not have a central body such as the government or bank managing the transactional process. Most common way to manage transactions with a decentralised system is through the usage of a ledger such as a blockchain.
Advantages- It can personalize a game or application by making it fun to collect and spend the specific virtual currency.
Disadvantages- It is a decentralised system,so has little regulation.
Normally specific to the context for which it was created and cannot be spent elsewhere.
Definition: Digital currency based on and equivalent to fiat money, the physical currency used in the country.