Popularity of digital currencies

Popularity of digital currencies

It’s a common misconception that digital currency is Bitcoin and other cryptocurrencies. Money that is accepted as a form of payment does exist but we can’t hold it. All the various forms such as e-checks are digital currency, not just online but kept in computer hard drives and other secure storage.

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Paper money

When we think about money, the first image that comes to our mind would be a wad of banknotes. Since the time of Kublai Khan, paper money made trade possible as it is a centralized form that has value for a payment transaction. Note that if paper money cannot be spent in one country, it is considered to have no value.

When we see the numbers

We might not think that the amounts in our passbook are digitalized, but it is. Those statement of accounts that you get from a credit card company represents your digitalized money. Anything digitalized like an e-check or the funds stored in your money services e-wallet can be cashed out. 

When money has value

The very essence of money is that it as value for it to be spent. One may find a whole load of banknotes and coins stored in an old house but if these were demonetized, the money has no value except for a collector. There is this saying about how one man’s trash is another person’s treasure, so it still boils down to the measure of value.

How the value of money increase

Digital currency has value and can increase as the form is traded. When a currency such as USD or Bitcoin is often traded in exchanges, the value goes up because of the demand. The value of digital currency can change fast like when Bitcoin drops. 

92 percent of our money is digital

Many people are not aware that ninety-two percent of the money in the world is in digital form. We transfer these funds using electronic methods of payment and using other modes like that of an electronic check. Our global economy thrives due to the speed and accuracy of sending and receiving digital money. 

What money is for 

When a digital currency is popular, it is because of trade. Money has to exchange hands and even if we store it, the intent is for savings that will ultimately be spent. If you store your cash in a trunk in the basement, it can get demonetized. If the money is in digital form, it will be updated, even if you don’t do anything, into the prevalent rate of exchange. 

Storing money

When money became digitalized, it amounted to a lot of savings for the banking industry. Cash is difficult to store as it needs vaults and other security measures. Paper money and coins have to be counted, unlike digitalized currency which we can transfer using the exact amount when we make a payment transaction

The smart way to store money

When you decide to store digital money, it is best to place where it can gain interest like your savings account. A lot of people use debit cards connected to e-wallets to be able to pay with ease. If you have this money services app, you can access your bank account to send and receive funds from your e-wallet. This app from a reliable money services company provides you with a smart way to pay.