What Makes Cryptocurrency so Special if Compared to Conventional Currencies
Cryptocurrency is a new age digital currency that has got no physical manifestation. The unit of the currency is titled “Coin” to make it similar to real money. In traditional manner the crypto currency is not money at all, this is a result of successful transaction for sharing the particles of the ecurrency. It is made of a special code and copying of it is next to impossible. A special method of cryptography is utilized to encrypt the data thus giving the name to digital finances.
It cannot become an object of a financial fraud as it is impossible to copy the emoney and that makes the cryptographic money the potential money of the future generation.
The Main Differences of Crypto Currency
The basic difference from the electronic cryptocurrency lays in the fact that in order to create the emoney it is necessary to add some real money through the bank or special terminal. For conventional currency the emoney is an electronic manifestation of the physical money.
However, there is no bank that issues the cryptocurrency and it is generated through the web and has got no connection with any standard currency and is not dependent on any country’s political system.
The Benefits of Crypto Currency
Although this is a totally new type of money there are some points which are worth mentioning and which make the cryptocurrency extremely effective and useful.
- The cryptocurrency is available from any part of the world where people have internet;
- It is impossible to print new coins or destroy the existing ones;
- Every moment it is possible to check the validity of the conducted transaction including the ones which were connected with yours.
- The open source code makes it possible to start mining and earning money for every person with internet and computer.
- The transactions with traditional money can be easily traced, while the electronic money guarantees the anonimousity.
- The emoney is quite reliable structure and is well protected. The hacking of the system is totally impossible, though the hacking of the users is still a risk.
- This is an independent currency and it attract the users most of all.
The Dark Side of the E-Currency
There are always some negative features and digital money is not an exception.
- The process is totally uncontrolled. There is no possibility to trace the movement of the money;
- The banning risk is rather high as some countries consider the digital money illegal machination;
- The conventional money is based on gold, while emoney has nothing to be based on;
- The payment cannot be canceled;
- Nobody is secured from bankruptcy or stealing and each person is responsible for the personal investments.
We will still rely on conventional material money for a long time. However, the digital currencies have got an immense potential of growth and only the time will show what will happen with it in future.