Virtual Currency
Virtual currency is a digital representation of value that exists only in electronic form. It is stored and processed through a designated software, mobile phone or computer application. Transactions related to virtual currency are conducted through dedicated networks or through the Internet.
They are provided and not controlled by a private group or group of developers.
Open money is part of digital money and includes other types of digital money, such as cryptocurrencies and tokens issued by private companies. Advantages of virtual currency include transaction speed and ease of use. The downsides of virtual money are that they can be hacked and do not provide much legal recourse for investors as they are unregulated.
The Evolution of virtual currency
Virtual Currency was created through improvements in network technology and cryptography. Unlike real money, which is issued and controlled by the government, it is created by cults. David Chaum first proposed some form of digital digital transfer in his 1983 paper Blind Signatures for Non-cash Payments.
The Cypherpunk movement was formed in the late 1980s by like-minded people who began to pool their ideas. Launch of DigiCash in 1989
1992 saw the creation of Eric Hughes of “A Cypherpunk Manifesto”.
Igor Chudov and Jim Choate founded Cypherpunks Distributed Remailer in 1997.
B-ego, a decentralized electronic payment system, was introduced in 1997.
Hashcash was first introduced by Adam Black in 1997.
1998 – Digicash files for bankruptcy after failing to establish its user base. Hashcash is a concept first introduced by Adam Black in his 2002 article, “Hashcash – A Denial of Service Counter-Measure”.
August 18, 2008 — The Bitcoin website has been launched.
Satoshi Nakamoto published on October 31, 2008 the article “Bitcoin: A Peer-to-Peer Electronic Cash System” as an advertisement for cryptography.
On January 3, 2009, the words “The Times 03/Jan/2009 Chancellor on the brink of a second bailout for banks” were included in the bitcoin genesis mined block, which was the first block created.
May 22, 2010 – One of the first recorded transactions has Laszlo Hanyecz agreeing to pay 10,000 Bitcoins for two Papa John’s pizzas. 2011 – With the open source code of Bitcoin, other cryptocurrencies started to appear.
Virtual currencies can be divided into two types:
Closed virtual currencies and Open currencies.
Closed virtual currency
Funds cannot be traded or used with closed funds outside of the environment in which they were created. A common example is airline miles – airline miles are issued by a private company and are only useful in certain transactions – they cannot be used directly to buy groceries in stores, for example. Closed currencies are also used in games, allowing players to shop and trade in the game environment, but not to withdraw money or exchange virtual currencies.
Open virtual currency
Open virtual currency is negotiable and transferable. You can buy these currencies online and hold them in a special digital wallet, before converting them into other virtual currencies or even some fiat currencies.
Advantages of Virtual currency
Virtual currency is money that circulates on the web. It has the same advantages as conventional money, it can be linked to a bank account or the bank card itself is linked to a virtual bank account. With cryptocurrency, users can buy online and in physical stores. But what is the advantage of free money over bank money?
Crypto-currency: universal and simple currency
The first advantage of virtual money is that it is a global currency, which means that users can send money instantly around the world. With virtual money, users are free to use their wallets, and if they want, they can buy what they want on the Internet or directly in the store. Therefore, Cryptocurrency is very easy to use and pursues the same goals as normal money.
Virtual currency: reliable and cheap currency
Virtual currency has the same advantages as conventional currency and gives its users the option to buy online or in stores. As for money transfers, they are faster and virtual money compared to bank transfers. With cryptocurrency, these can be transferred all over the world, without any restrictions. In addition, the commission requested by the virtual currency is small or non-existent due to the fact that there is no intermediary and for transaction fees, these are also much lower than those invested in different ways . (credit card for example). Virtual currency is a reliable currency, its cost is almost zero.
Secure currency
In terms of security, virtual currency is a safe and complete payment method: the various transactions that are made are encrypted and supported by certain computer numbers. With cryptocurrency, you can trade with peace of mind. Over time, the amount of money has increased significantly. Their use is constantly increasing; it must be said that their benefits are very good (almost zero), and their security is reassuring for users.
Disadvantages of digital currency
The Disadvantages of digital currency are:
Security and speech resources
Although they do not require a physical wallet, digital currencies have their own security and regulation. For example, internet connection and smartphones are required and services related to their supply. Online wallets with strong security are also essential to store digital currency.
Variable value
Digital currencies used for trading can have wild price fluctuations. For example, the decentralized nature of cryptocurrencies has led to a small number of small digital currencies whose value has sudden changes depending on the wishes of investors.
Other digital currencies followed the same price trend in their early stages. For example, the Linden dollar used in the Second Life online game had a variable price position during its first season.
