Topic: Electronic Money vs. Physical Money - page 39. (Read 9521 times)

Both electronic money and physical money are the same, both are still currencies, however there is a very huge differnce ehen it comes to value, if you are talking about the physical money, being fiat, its buying power decreasing, it is noticeable when you look at the inflation rate 10 years ago and today, however for bitcoin it is different, the value increased from 10 years ago. I think that a lot people will agree that they are feeling the affects of inflation and those who are into bitcoin for sure are now seeing the growth of value of their investments. I think that electronic currency is still the best since it is the future and is more flexible, there are also a lot of traits that electronic currency that physical money cannot give, and also if you check the benefits of electronic currency, it is still much better and there's a lot.

Physical money more simple in usage then electronic and it also requires internet to use them, and for simple transactions like buying in a store i would be faster to use physical money for online payments will be better electronic

Hi guys, I just want to know your views and opinion about the difference in Electronic Money (Bitcoin and others) and the Physical Money. Many people now a days are still confuse about the existence of the Bitcoin and how it differ from our Physical Money that we are using to buy necessity. I hope we could share and learn from each other. 

Electonic money (cryptocurrency) and Physical money are totally different so its hard to tell on the other people which is easy to use, mostly for those country that not enough internet connection or didnt know how to use internet to use this electonic money and Paper money is being used since centuries while digital money is introduced only few years ago. Moreover, paper money is good for spending while digital money is good for investing.

Bitcoin which we call the electronic money is totally virtual stored in digital wallets. Physical money is totally different from it.
Physical money can be generated more but cryptocurrency is limited. It cannot be generated more. What we have at present will remain the same. And it can be only transferred from one account to other. We cannot hold it. And I think electronic money is more safer and easy to use nowadays.

This is hard work, to convince someone that with bitcoin is safer than with physical money. If some wants to learn about it i suppose it is easier if it make a correlation with the plastic card, those are digital money to, they can't see or touch them. The same goes with cryptocoins, just that is an other, let's say foreign currency.

Hi guys, I just want to know your views and opinion about the difference in Electronic Money (Bitcoin and others) and the Physical Money. Many people now a days are still confuse about the existence of the Bitcoin and how it differ from our Physical Money that we are using to buy necessity. I hope we could share and learn from each other. 

I think both of them are same because both of them are money but bitcoin is a digital currency and other currencies are paper currency and I must say bitcoin is little better than paper money because bitcoin price is high than any other currency and it’s also easy to carry with yourself bitcoin in now available almost everywhere and the users are going to support bitcoin.

The comparison of both currency are really have a big difference they are both useful to us, electronic or digital money is the crypto currency money that by using internet connection we access payment transaction through this while physical money or a paper money its a handy money which is we can purchased without internet connection.
This both thing can't compared because they are same currency that we need.

Agreed, there's a lot of misunderstanding.

I think part of it starts with how you're articulating "electronic money".

Fiat money is physical and electronic. In fact while studies say most of the money supply for the Dollar (for example) is physical (paper, coin), most of the transactions are electronic (i.e., debit card, credit card, ACH transfers).

There are different types of currency which are created by different entities, used in different geographic locations, and have different amounts of buying power (and therefore value compared to other currencies). Each currency can be transacted via electronic or physical means.

Ok, that make sense? If not let's talk.

More specific to your question: what's the difference between Bitcoin and Fiat currencies?

Fiat currencies are controlled by a central entity (i.e., government or bank). This central entity then controls the amount of their currency that's in existence and up to this point that system fiat system has followed the principle of creating more money when it's needed. This creation of more money supply reduces the value and spending power of the existing supply of money. Can you see how these characteristics may be harmful for the public?

Crypto-currencies (e.g., Bitcoin) are not controlled by a central entity, and money supply is finite. This allows the money unit to increase it's spending power as demand increases and supply stays (relatively) constant. They "crypto" part refers to the cryptology used to secure transactions. This is why it's nearly impossible to hack a wallet's private key unless the hacker finds the actual private key or finds your account password.

Ok. I'll stop there...what questions do you have?

Too many upsides and downsides to those respective currencies. To name a few, physical money are readily liquidated while the other is not. It can handle instant and micro transactions. E-money's strength though is to long distance transactions and it has ledgers which record payments. Both complement each others weakness so they can co-exist rather than replacing one or the other.

I think electronic money is the future of money and all financial transactions, bitcoin is safe and easy to use than paper money the stress of using paper money is some time much to switching to electronic money is the best and the safest thing.
Let think of how much is spent by the central banks of different states to created physical money compared to the amount spend in creating electronic money the gap is wide.