Digital Currencies

Run out of Dollars? Missing your Euros? Where the hell has your Yen gone? How about a Bitcoin instead?

The world has gone digital. Everything is digital. Your phone, your watch, your pacemaker… it’s all driven by digital technology and they’re all connected to the internet.  This transformation has brought with it a demand for a digital way of carrying out transactions that offer convenience and speed.

Digital currency is an Internet-based form of currency or medium of exchange. It is not of a physical form (such as banknotes and coins) but it exhibits properties similar to physical currencies. It allows for instantaneous transactions and borderless transfer of ownership.

A decade ago the concept of digital currency was seen as a far-fetched. However, digital currency is a reality that financial institutions, government bodies and retailers must contend with today. One day, soon, your dollars will disappear. They will be absorbed via osmosis into the world of blockchains and digital currency.

digitalcurrencies

Just like different physical currencies exist, so do digital currencies. Here’s a list of some of the current flavours of digital currencies:

  • Bitcoin
  • Litecoin
  • Ethereum
  • Zcash
  • Dash
  • Ripple
  • Monero
  • Peercoin
  • Dogecoin
  • Primecoin
  • Chinacoin
  • Ven

Digital currency is passed around in return for the exchange of services and purchase of goods online as well as the real world. It can be transferred via electronic funds transfer (EFT) and withdrawn in the currency of your choice.

Most world governments as well as financial regulators are wary of digital currency as the infrastructure and legal structure surrounding transactions is still immature and potentially open to manipulation.

One of the major drawbacks of digital currency is that it fluctuates on a daily basis. This makes it a risky investment for those looking to lower their margins, especially when it comes to buying items. The demand for digital currency, however, keeps growing as the years go by. With enough time, currencies like Bitcoin will start being regulated, leading to stability and trust from major financial players.

You can purchase digital currency using digital wallets such as PayPal. At any given time, these currencies carry a value in relation to different major world currencies. Other digital wallets you can use to purchase virtual cash include Coinbase and Circle. You are also able to withdraw your digital cash from dedicated ATM’s in the Western hemisphere as well as some European countries. If you’d like to know what you can buy with digital cash, check out this informative article. At the end of the day, it seems that digital currencies are here to stay as seen by the widespread acceptance of this alternative and somewhat futuristic way of exchanging value between buyers and sellers.

 

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Alex

Born and bred in Melbourne... I am passionate about my soccer, I'm learning to fly a plane and I have a passing interest in technology.

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