A virtual currency (or cryptocurrency) is a currency that circulates on the web. It has the same value as a conventional currency and can be linked either to a bank account or to a bank card linked itself to a virtual bank account. With cryptocurrency, users can buy online and in physical stores. But what are the advantages of virtual money compared to bank money?
Cryptocurrency: a global and simple currency
The first advantage of virtual currency is that it is a global currency, which means that users can send money around the world instantly. With virtual currency, users are therefore free to use their wallets, and if they wish, they can buy the items they want on the internet or directly in stores. Cryptocurrency is, therefore, very simple to use and pursues the same objectives as conventional currency.
Virtual currency: a reliable and inexpensive currency
The virtual currency has the same value as a conventional currency and gives its users the possibility to buy online or in-store. When it comes to money transfers, they are very quick with virtual currency to compare bank transfers. With cryptocurrency, these transfers can also be made globally, without any restrictions. In addition, the commissions requested by virtual currency are minimal, or even nonexistent due to the fact that there is no intermediary and for transaction costs, these are also much less important than those applied by the various conventional means of payment. (bank card, for example). Virtual currency is, therefore, a reliable currency, and the costs are almost zero.
A safe currency
On the security side, virtual currency is a safe and completely secure means of payment: the various transactions carried out are encrypted and validated by a number of computers. With cryptocurrency, you can do your shopping with peace of mind. Over time, the number of virtual currencies has grown steadily. Their use is also more and more frequent; it must be said that their benefits attract a lot (almost zero costs), and their safety is very reassuring for users. So, are you more like virtual money or classic money? You can read more about traditional payment vs cryptocurrency
What do we mean by bitcoins?
Bitcoins around here, bitcoins around, don’t you feel like everyone is only talking about this virtual currency around you? You’re probably not alone, and that’s perfectly normal. Bitcoin has literally taken the web by storm for the past few months, and its popularity is growing. This virtual currency does not physically exist like 20 dollar bills in your wallet. It only exists online and is exchanged between users around the world. No organization or bank manages cryptocurrency. This currency is completely independent, and that was the goal of its creator, Satoshi Nakamoto. So going back to our bitcoins, this is the most popular type of cryptocurrency in the world in 2018. It is for this reason that the value of a bitcoin varies from one moment to another during the year. Blockchain is a protocol which represents a huge accounting book and which makes it possible to transmit all the information relating to exchanges and between users. When two people decide to exchange bitcoins between them, the transaction is then encoded on the blockchain database: other users do not have access to your bitcoins, and everything remains safe for everyone.
Another big question is how the number of bitcoins is determined? This work is done by “miners” who are also responsible for ensuring that bitcoin exchanges go smoothly. Anyone can choose to become a “miner”, but you need to have the right hardware and be very knowledgeable about the world of cryptocurrencies and Bitcoin. One last essential thing to know is how you can buy bitcoins? The easiest way if you decide to buy bitcoins is to go to a specially designed online exchange site and put your bank details so that you can trade and get bitcoins too. Always select the currency of your country before you start to see the price at which a bitcoin is sold. Once that’s done, you can start trading bitcoins with other users. Some people have a lot of bitcoins in their possession. This method has several advantages and disadvantages which we will see in detail now.