What is Digital Currency and How Does It Work? : Frineds, Do you know what is Digital Currency? If not then in this article today what is Digital Currency? You will know about it in detail about all the important information. The use of digital currency was maximum at that time, when the Prime Minister of India, Honorable Narendra Modi did demonetisation on 8 November 2016. At that time a lot of problems had to be faced, no one had new notes, so people did most of the transactions at that time through digital currency.
However, in today’s time, a lot of Ewallet is used in India. If we do shopping from anywhere, or buy any thing, and we do not have money in cash, then we pay online from our e-wallet. Apart from this, India has also made many changes in the field of banking, out of which internet banking is also a good step. Along with the Reserve Bank of India, the Government of India decided to bring digital currency. So let’s know, what is digital currency?
What is Digital Currency?
Digital currency is also called e-currency or cryptocurrency, in which the payment method is done completely in electronic form. These currencies, called cyber cash, are discussed all over the world. Digital currency can also be called virtual currency. Digital currency is a kind of currency, which exists only in digital form, and it is also bought and sold online. Digital currency can only be used to buy and sell things online, you cannot use it for offline things.
There is no limit to the number of times you can transact in digital currency. Digital currency is more secure than making online payment by debit or credit card, because it uses cryptography, which makes it even more secure. Transactions can be done through this currency without any medium through computer networks.
At the same time, this digital currency is kept in a digital wallet, Digital Currencies have been banned in many countries, because of this many illegal works are being done. That is why it is also called Cryptocurrency. The world’s first cryptocurrency is Bitcoin. Depositing it is called mining. Crypto currency can be easily transferred to any corner of the world and can be converted to any type of currency like Dollar, Euro, Rupee etc.
What is the difference between digital currency and this cryptocurrency?
What is the difference between a digital currency and a cryptocurrency, a central bank digital currency is usually a virtual currency, issued in the form of a tender by a central bank. And let us tell you that digital currency is legally recognized by the government. Digital currency is recognized by all the countries where the central bank issues this currency. This currency is used for contactless payments, for example whenever you transfer money from your bank account to one of your family accounts. Or you withdraw money from ATM.
If we talk, what is cryptocurrency? Bitcoin currency also comes under cryptocurrency, this currency is not physical. You cannot touch this currency. Such currency is not under the control of the government, nor is it kept in any digital wallet. Let us tell you that cryptocurrencies fluctuate from time to time, whereas digital currency does not fluctuate in any way.
List of digital currency
Just as there are many currencies around the world, all countries have their own money names, and they have different values, in the same way there are many types of digital currency, they are also of many types, so Let us know about AC currency only.
- Bitcoin :- The most widely used cryptocurrency digital currency around the world is bitcoin. It currently has 16.8 million tokens in circulation. Bitcoin is being called the poster-child of the cryptocurrency industry. However, critics of Bitcoin are a bit skeptical about its growth due to its slow speed and high transaction fees.
- Litecoin :- Litecoin, launched in 2011, was one of the early cryptocurrencies after bitcoin and is often referred to as the “silver to bitcoin gold”.
- Zcash :- Zcash, a decentralized and open-source cryptocurrency launched in late 2016, promises to be. “If bitcoin is like HTTP for money, then zcash is HTTPS,” an analogous zcash uses to define itself.
- Bitcoin Cash :- Launched in the year 2017, Bitcoin Cash is one of the most traded cryptocurrencies in the world. It has a block size of 8MB while the original bitcoin has a block size of 1MB.
- Ethereum :- Ethereum is built as a decentralized app provider. It has a specific purpose to get away from the need for third party companies like Apple to build apps. Apps developed on Ethereum will be on a distributed public platform where miners will be able to earn ‘ether’.
- Libra :- Libra coin is a digital currency created by Facebook. Facebook is developing a wallet for Libra that will allow it to be stored. People will be able to buy and sell Libra as a cryptocurrency.
Advantages of Digital Currency
- The digital currency will be recognized by the government.
- After the introduction of digital currency, people will get rid of cash.
- The digital currency will be included in the balance sheet of the country’s central bank.
- After this currency, the government will also have this advantage, that the cost of printing the government’s note will come down.
Disadvantages of Digital Currency
- Bank employees have suffered after the introduction of digital currency.
- After the introduction of digital currency, the number of employees in the bank has been reduced.
- Most of the things have become electronic in banks, so the recruitment of employees in banks can also be less.
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