What is Digital
Currency:
Digital currencies are currencies that can be used in the
virtual as well as physical worlds.
You can use digital currencies to buy products online
and you can walk into a store that accepts them and purchase
physical goods.
Digital currencies has no central point of control over the
money supply.
The money supply is decentralized.
Individuals can get digital currencies by utilizing
their computers to mine them, buy them on an exchange (like
Coinbase) or accept them for products and services.
Digital currencies allow for instantaneous transactions and
borderless transfer-of-ownership.
You can instantaneously pay someone on the other side
of the globe for a product or service.
There is a small transaction fees when using digital
currencies. The
transaction fee is much smaller than that of traditional
financial institutions.
There are two types of digital currencies,
encrypted and
non-encrypted.
Encrypted digital currencies uses cryptography to
make it extremely difficult to counterfeit.
Some examples of Digital currencies are:
Bitcoin,
DevCoin,
Feathercoin,
Litecoin,
Novacoin,
Terracoin.
By far the most popular one is
Bitcoin.
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