Topic: Difference between Digital currency and cryptocurrencies - page 4. (Read 632 times)
There is also this one term that is been asked me including these two which is the virtual currency, they said that it is like that Virtual Currency and Crytpo Currency are the same but it is not, really. Virtual Currency is a currency with no physical state but it is still different with crypto currencies. The examples I can give is the game money or game credits we are seeing to a lot of game platforms these days.
It is nice questions because I was ever in trap defining the term of Digital currency and Crypto currency. There are many analogies miss perception to define and differ between Both currency. Basically, Crypto currency can be defined as digital currency as the existence is on the internet or in form of digital, but not all digital money is Crypto currency. The term of Digital currency is a term for all digital money in the internet. What makes different between digital money and crypto currency is that Crypto currency is created with cryptography technology decentralized which use Blockchain technology.
In simple that all transactions in Crypto will be on every computer which uses it.
In simple that all transactions in Crypto will be on every computer which uses it.
The both types of currency is revolving round decentralized and centralized, currency, you have nailed enough points to keep us calm..well done.
Thanks for outlining all differences between the digital currency and cryptocurrencies. I hope that we will be able to use both of them because these are new trends and this will allow to enjoy many pros
The difference between the two currencies is this:
Digital currency is has a centralized structure while cryptocurrency has a decentralized structure .
Digital currency is relatively stable while cryptocurrency is not.....as a matter of fact, cryptocurrency is highly volatile.
While government have powers and control over digital currency it can not be said of cryptocurrency.
Etc
Digital currency is has a centralized structure while cryptocurrency has a decentralized structure .
Digital currency is relatively stable while cryptocurrency is not.....as a matter of fact, cryptocurrency is highly volatile.
While government have powers and control over digital currency it can not be said of cryptocurrency.
Etc
The first and biggest difference between Digital currency and cryptocurrency is the nature of currency. Digital currency are centralize in nature which means they are under control of government where cryptocurrency are decentralised in nature which means they are not under control of any kind of authority or government. Secondly digital currency are regulated currency so they are more stable. Where as cryptocurrency are not regulated so they are highly volatile in nature. Digital currency are worldwide accepted currency where as crypto currency are accepted in limited number of country.
Cryptocurrency for me is a form of digital currency which is decentralized and provides anonymity to its holders. Hence it is tagged 'crypto'.
They are all forms of digital assets.
They are all forms of digital assets.
Digital currency (advanced cash or electronic cash or electronic money) is a sort of money accessible just in advanced shape, not in physical, (for example, banknotes and coins). Precedents incorporate virtual monetary forms and cryptographic forms of money or even national bank issued "computerized base cash". Computerized monetary standards, in the mean time, are reclaimed for physical products and ventures constantly. You can arrange items by means of PayPal
A Crypto-currencies forms like BTC, Eth are new, however change method of repayment with no clearing house, national banks and center individual or operators remain in the middle of the repayment party like national banks and banks. Accordingly, it's no additional expense of middle of the road party, quick, simple (once you see how to work the wallet paying little mind to hard wallet or delicate wallet). Its straight managing between 2 party, utilizing Crypto-currencies forms as medium of repayment for their merchandise and enterprises. Estimation of the Crypto-currencies standards is moved rely upon free market activity.
A Crypto-currencies forms like BTC, Eth are new, however change method of repayment with no clearing house, national banks and center individual or operators remain in the middle of the repayment party like national banks and banks. Accordingly, it's no additional expense of middle of the road party, quick, simple (once you see how to work the wallet paying little mind to hard wallet or delicate wallet). Its straight managing between 2 party, utilizing Crypto-currencies forms as medium of repayment for their merchandise and enterprises. Estimation of the Crypto-currencies standards is moved rely upon free market activity.
I was introducing cryptocurency to one of my friend and after so many explanation, he asked me the difference between the two currencies, so below was my answer to him
These forms of currencies are inherently similar. However, their similarity devolves into distinct features when they are examined more critically. Here are some of the major differences between digital currency and cryptocurrency.
1. Decentralization vs. centralization:
Banking system, a majority of digital currencies are regulated by regulatory bodies like the Federal Reserve or other designated government parastatals. This means that transactions are constantly monitored, and their value determined by these regulatory bodies.
On the other hand, cryptocurrencies are fully decentralized. This means that no institution is set aside to regulate them. The rules are set by its community. As a result, the viability of a cryptocurrency is highly dependent on the strength its community can garner.
2. Privacy:
Privacy in this sense refers to the ability to conceal the information of the account owner.
With digital currencies, this is practically impossible. To open a digital account, you need to upload your photo and fill in your personal details, to make use of services like PayPal, you have to fill in your information like name and address. Hence, you can easily be tracked.
On the other hand, you don’t necessarily need to disclose any of your personal information when opening a wallet for cryptocurrency trading. In fact, coins like Dash are available to provide full anonymity, and this is one of the reasons why cryptocurrencies were widely used on the dark web.
3. Transparency:
The framework of digital currencies only allows approved entities to get access to the transaction information. Information regarding transactions of which you’re not directly connected is withheld from you.
On the other hand, cryptocurrency transactions are made available to the public domain. Even though the people behind the transactions are unknown, this way, you can personally monitor how much money is in the system.
4. Legal framework:
Most digital currencies are backed by a recognized central authority. Having legal support from government and financial institution establishes their general usage and acceptance.
On the other hand, cryptocurrencies aren’t backed by any form of a recognized body. As a consequence, they’re not yet fully recognized as a legal tender worldwide.
5. Dominance:
Due to their recognized backing, digital currencies are accepted all over the world. Carrying out transactions with digital currency isn’t restricted by geographic borders, race or even belief systems.
Cryptocurrencies, on the other hand, are loners. They are only accepted by a small group of institutions and compared to other centralized digital coins, their popularity doesn’t measure. Although analysts pose that this will soon change and government regulations will be more favorable towards cryptocurrency.
6. Transaction interference:
Since transactions are monitored by central authorities when using digital currency, they can easily flag transactions suspected to be suspicious or even freeze an account temporarily on the request of the owner. This makes transaction reversible.
On the other hand, once a transaction is completed with cryptocurrency, it is automatically added to the Blockchain and is forever irreversible.
7. Value fluctuation:
For digital currencies, its value is determined and regulated by financial institutions. This makes the currency relatively stable.
Cryptocurrencies, on the other hand, are unregulated. This makes them highly volatile and susceptible to slight behavioral changes in its community.
Hope this will help many newbie here. Cause i myself still learning.
These forms of currencies are inherently similar. However, their similarity devolves into distinct features when they are examined more critically. Here are some of the major differences between digital currency and cryptocurrency.
1. Decentralization vs. centralization:
Banking system, a majority of digital currencies are regulated by regulatory bodies like the Federal Reserve or other designated government parastatals. This means that transactions are constantly monitored, and their value determined by these regulatory bodies.
On the other hand, cryptocurrencies are fully decentralized. This means that no institution is set aside to regulate them. The rules are set by its community. As a result, the viability of a cryptocurrency is highly dependent on the strength its community can garner.
2. Privacy:
Privacy in this sense refers to the ability to conceal the information of the account owner.
With digital currencies, this is practically impossible. To open a digital account, you need to upload your photo and fill in your personal details, to make use of services like PayPal, you have to fill in your information like name and address. Hence, you can easily be tracked.
On the other hand, you don’t necessarily need to disclose any of your personal information when opening a wallet for cryptocurrency trading. In fact, coins like Dash are available to provide full anonymity, and this is one of the reasons why cryptocurrencies were widely used on the dark web.
3. Transparency:
The framework of digital currencies only allows approved entities to get access to the transaction information. Information regarding transactions of which you’re not directly connected is withheld from you.
On the other hand, cryptocurrency transactions are made available to the public domain. Even though the people behind the transactions are unknown, this way, you can personally monitor how much money is in the system.
4. Legal framework:
Most digital currencies are backed by a recognized central authority. Having legal support from government and financial institution establishes their general usage and acceptance.
On the other hand, cryptocurrencies aren’t backed by any form of a recognized body. As a consequence, they’re not yet fully recognized as a legal tender worldwide.
5. Dominance:
Due to their recognized backing, digital currencies are accepted all over the world. Carrying out transactions with digital currency isn’t restricted by geographic borders, race or even belief systems.
Cryptocurrencies, on the other hand, are loners. They are only accepted by a small group of institutions and compared to other centralized digital coins, their popularity doesn’t measure. Although analysts pose that this will soon change and government regulations will be more favorable towards cryptocurrency.
6. Transaction interference:
Since transactions are monitored by central authorities when using digital currency, they can easily flag transactions suspected to be suspicious or even freeze an account temporarily on the request of the owner. This makes transaction reversible.
On the other hand, once a transaction is completed with cryptocurrency, it is automatically added to the Blockchain and is forever irreversible.
7. Value fluctuation:
For digital currencies, its value is determined and regulated by financial institutions. This makes the currency relatively stable.
Cryptocurrencies, on the other hand, are unregulated. This makes them highly volatile and susceptible to slight behavioral changes in its community.
Hope this will help many newbie here. Cause i myself still learning.
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