Traditional Money Vs Digital Money
Traditional Money is that money which is issued by the Financial Authority of a country. It is measured as currency, plus deposits of banks and other institutions at the central bank. It is also that money which can satisfy the reserve requirements of commercial banks.
Digital money (electronic money or electronic currency) is a type of currency available only in digital form, not in physical (such as banknotes and coins). It exhibits properties similar to physical currencies, but allows for instantaneous transactions and borderless transfer-of-ownership.
As money continues to become more digitize, terms like crypto currency, digital currency, and Bit coin have become major buzz words in the payments world. We recently took a look at what crypto currency is and how it works, and now we’re here to discuss how it differs from traditional payment forms including cash, credit and debit cards.
What Is Crypto currency?
Crypto currency, also called digital currency, is a virtual currency you can send/receive online medium. Digital currency represents value that is not issued by a Financial Authority of any country or any government, but is accepted by people as a means of payment for goods or services.
There are currently more than 900 crypto currencies available over the internet, and new crypto currency can be created any time. Bitcoin, Ripple, Ethereum, are some of today’s bigger players that you may have heard of.
Differences between Traditional Money Vs Digital Money
Digital currency maintains complete secrecy of users. Every time you swipe your credit or debit card, your personal information is shared with bank and government, resultant they can use this data to track your activities. Crypto currency transactions carry no personal information (unless you add it yourself). This privacy also decreases the chances of identity revealing.
✓ Constant access to your accounts.
Traditional accounts can be unmoving, but digital currency exists outside the regulations and laws that allow this to move, The Frequency to get suffer while accessing your Accounts is very rare to be happened.
✓ No fraud!
Individual Crypto-Currencies are digital and cannot be counterfeited or reversed arbitrarily by the sender.
✓ Lower fees.
Traditional banks charge fees to process transactions. With digital currency being exchanged over the internet, there is usually low/ no transaction fees.
✓ Access to everyone.
There are around 2.2 billion people with access to the Internet or smart phones who limited there have access to a traditional exchange. For these people, the Crypto-Currency is perfect.