Topic: Electronic Money vs. Physical Money - page 47. (Read 9521 times)

In third world countries where "Cash is King", electronic money still has a long way to go before it becomes the norm.
But putting bitcoin, stock market and foreign exchange in the school curriculum would be a good start.

I'm prefer electronic currency. we just need smartphone for transaction and easy to use but don't forget electronic currency have a bad thing when you are far away from the signal range and no atm in there it will difficulty for transaction.

I use more electronic currency than physical currency. I find more and more often I use electronic form of currency in the form of debt cards. I prefer the ease of cards to cash hopefully we will get to the point where more and more crypto currency are accepted the same way.

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?

There are a lot of things that can be compared, this comparison is very important because it is used in our daily life. In comparisons, we can never avoid the advantages and disadvantages of the things being compared.

If we talk about electronic money, which is also cryptocurrency. Cryptocurrency is very secure and only a few reports of it that it is hacked or it is a fraud. Cryptocurrency is very easy to use because it is on the internet and we can use it in transactions in the internet. Bitcoin is one of the famous cryptocurrency and one of the easiest to use cryptocurrency due to its high value and demand of the users. Cryptocurrency has also a wide variant of how we can get it for a specific time span. If we want a higher value of cryptocurrency, it will take a lot of time before we get the value we want and we should work for it so that we can get the value we want. One disadvantage of cryptocurrency is that, you should spend lot of time in the internet if you want to receive the payment you worked for.

Physical money is very useful because it is what we need in our daily necessities. We can buy food, water and clothing with these. Physical money can be earned twice a month or once a month or it also depends on the manager/agency we are working for. There are reports that physical money this days can be cloned which is bad because it is hard to distinguish which is a fake one and which is real money. Physical money can also be robbed by bad people and life can be the value they want to exchange for it.

So i guess, we need to be extra careful on how we use this money both electronic and physical.

There are some differences between Electronic Money and physical Money. at first, I want to say that Electronic Money is totally dependent on the internet connection, on the other hand, Physical Money is not dependent on anything. Secondly, Electronic money is secure than physical money, because Electronic money is fully protected with your password. and Finally, Electronic Money is not available everywhere but physical Money is everywhere available. That's all the major difference between these two form of money.

There's a lot of distinct differences that could be drawn between the two.

1. Fiat can be created from thin air; cryptocurrencies has a set amount of coins to be mined/acquired.
2. Inflationary (fiat) vs Deflationary (cryptocurrency)
3. Region-restricted purchases (fiat); shopping with no borders (cryptocurrency)
4. Requires an intermediary to store money (fiat); you're your own bank (crypto)

These are some of the things that differ crypto from fiat. There's a lot more aside from those things but that's just what I thought off the top of my head.

Bitcoin is just a digital currency and it is completely different from cash, it's not material, it's pure virtual money so no one can tamper with it or eat it. It was. Most people mistake it because they do not really know it and do not know the nature of it, they are happy with the money they are using, it is cash.

Actually it's totally different,
even though its name was Cryptocurrency,we can not compare it to actual money aka Fiat.
if we want it to be considered as a 'real currency' we should have a physical form.
right now the best word to describe it is 'Electronic Payment' not 'Electronic Money'.
'Electronic payment' was a tool for people to help them send their money across the world,
it's just a tool and will never replace the real 'money' itself.

Better invest in crypto. They at least requires some work. In a case of fiat, they can be drawen easely.

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.