Difference between digital and cryptocurrency
today i'm going to talk
about the differences between digital
currencies and cryptocurrencies:In a world of digital currencies in fact up
here in canada we
no longer even use the penny it's
too expensive to make so slowly but truly
that hard
physical currency is disappearing we
had the evolution of paper currency and
then credit cards and now we even have
wiring
and paypal and venmo so
the digital currency is being
accepted now why is
something a digital currency versus a cryptocurrency
what's
the main difference well the digital
currencies are
regulated by the federal banks of the
con of
the country so the u.s bank is going to
control the
u.s dollar the bank of canada the
canadian dollar and so on so they are
tracking
all of this currency what's crossing
the borders you
know how much many times if you transfer
an amount larger than ten thousand
dollars they start to ask questions
in
fact even over nine thousand dollars many
times they will ask you what
is the purpose of this transfer why are
you transferring it or
any sort of cross-border transfer they
will usually ask you and say why are
you transferring this money which
then brings us to cryptocurrency right
cryptocurrency
is decentralized there is no
central
bank that is following this currency
so it goes through an encryption process and
it's all encryption
between point to point for the
transfers, that's
the only way to track it and you store
this digital currency in
a crypto wallet sorry the
cryptocurrency in a crypto wallet it is
a form of digital currency but again
it's not regulated which is why it's
a crypto currency
so that's part of the reason why
?
many people are skeptical of cryptocurrencies
is because they aren't being
regulated by
anybody and some think that this is a perfect
way.
for people to launder money because it does
not go through
a central bank. (Shakeel khan)
No comments:
Post a Comment