Cryptocurrency vs Digital currency

“Digital currency” such as money in e-wallets, metro cards, “Cryptocurrency” such as Bitcoin and other altcoins, etc.

Cryptocurrency vs Digital currency?

They are the same, in that the word “digital” is intangible. But has an electronic identity Or in the Internet world, the difference is that “digital money” will have local currency as a back-up, for example, having to pay baht money to pay an e-money provider before using it to pay for a product. Therefore, it is denoted in a local currency such as an e-wallet, Starbucks card, or metro card.

“Cryptocurrencies or cryptocurrencies (cryptocurrency) ”like Bitcoin is a new currency built on a limited number of mathematical mechanisms. Need to use a decryption computer system in order to extract money from the mechanism

The new currency was created to reduce the centralization of payment systems through financial institutions such as banks so that they can be distributed among users in that currency network by using blockchain technology to track money movements. Even without intermediaries But can also prevent counterfeiting Payment/transfer is therefore only within the network. Which has the advantages of speed, low cost and safety.

But most central banks have not yet guaranteed that the digital currency was created. Will be able to use legal debt settlement As a result, cryptocurrencies are not yet a complete substitute for local money. Because it is not yet a payment medium and is not used as a unit for determining the price of items, plus the value is also very volatile, but if it is a “central bank digital currency (CBDC) digital currency” will qualify The full amount of money because it has a certain value And can be used in place of the local currency according to the law.

Why are cryptocurrencies becoming attractive?

The popularity of cryptocurrencies may be evident in countries where people are less trustworthy of local currencies and uncertain about the stability of the financial system in countries such as Venezuela, which has suffered an economic crisis. It faced extremely high inflation, almost 1 million percent in 2018.

And by the beginning of the year 2021, Bitcoin’s price hit $ 1 million, attracting the attention of most people, as Bitcoin has multiplied its value in a few years.

Using cryptocurrencies in global 

Currently, the use of cryptocurrencies in global for payment transactions still has a limit, there have been people who produce their own crypto and there are more merchants starting to accept digital currency payments in the world. like Classe (CAS) coins, etc.

As written above, we can feel that cryptocurrency is getting closer. Especially those who view it as an investment choice and take risks.

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