Wednesday, 17 May 2017

Bitcoin versus electronic money.

From platforms for investment projects, to social networks and virtual encyclopedias in continuous development, the internet never stops to grow, to progress and to surprise to the whole world. One of the inventions that have emerged from the internet is Bitcoin and electronic money.

Bitcoin is just another virtual currency, but it does not have many similarities with electronic money or E-Money, which is an extension of the national currency of each country that allows channeling the reduction of the costs of handling the currency in physical. Basically, E-Money is your nation's money in virtual form, while Bitcoin is much more than that.

Instead of people getting the money working traditionally, Bitcoin is "mined" using specialized hardware and software in a distributed global network of volunteer developers. But the most enjoyable feature that Bitcoin has is that it is not controlled by any financial authority, as simple as that the supplies are programmed by a predetermined algorithm to grow slowly and reach a limit of 21 million units.

To receive bitcoins, it is necessary that you are already informed and in conditions of internet of financial access that this requires. Your participation will be based on the trust you have in the private currency and at your own risk.

Once you have used conventional means to receive Bitcoins, it is understood to spend money through debit or credit cards, in specialized websites like Biitxoxo, Bitcoin acts as real money, and you can only use it to pay for products and services in places to accept it. It should be noted that Bitcoin's transactions are anonymous and cannot be revoked.

Unlike Bitcoin, electronic money is not a currency separate from that of the nation and is overseen by the same entity that has the monopoly in the issuance of this currency. Consequently, the value of e-money will always be the same as the current value of the national currency.

Another big difference between Bitcoin and E-money is that to protect consumers, the money with which e-money was "bought" is usually deposited with prudent regulations of a financial institution.

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