Digital Currency – types, uses and examples

Would Digital Currency Make the World a Better Place?

So far you are aware about the various digital currencies we discussed. We have tried our best to make you familiar with the basics of different crypto coins; from its mining to its purchasing process. However, after getting into this business of virtual money, we still doubt whether it can aid in making the world a better place than the one in current state. To answer this challenging question, let’s take a flashback of how the Internet world technologies came up with some vital improvements!

Digital Currency and Communication:

The most appreciated field is of Communication. Yes, the communication through the web world brought an extreme ease in the lives of people. The postal way is a not so efficient one for easy communication. Hence, the emails and social networking sites proved it a better place for the users to interact with people in every corner of the world.
digital currency types and uses
In a similar way, the crypto currencies have come up with some significant changes, in an affirmative way of course. The smooth floating movement of virtual money is its best weapon in the war. The digital currency has eased tax evasion and consequently, less pay by a citizen for his livelihood.Moreover, there are no additional expenses for the digital transactions to take place, unlike the one in physical transactions.Although not maximum of population has got into this trade, still it has a huge quantity of the digital currency owners and more huge transaction carriers.

Digital Currency Real Examples:

Consider the example of a mobile-phone based micro-financingservice (deposit, withdraw and transfer money through Cellphone) launched by Vodafone, the M-Pesa. It is trending news in the Mobile Money Market. Also known as Mobile wallets, it has changed the lives of people in Kenya and Afghanistan in many forms, since, majority of the citizens of these countries are unbanked and are the ones who have strived mobile payment systems. These have been successful in creating a new virtual industry and making money for the telecoms. However, it will have to lower down the fees for the various transaction values in the coming time period. Bitcoins is another example of digital currency which is growing in popularity like crazy. Although in some countries, people cannot buy bitcoins with PayPal or real money, there are some exchanges like Virwox which allows users to buy bitcoins easily.

Note that the Central banks are in favor of cashless economies and this is the reason why the digital currency improved the economy status of Kenya. It has even enhanced the financial conditions of countries like Tanzania and Uganda. Using the peer-to-peer payment method, about 8-10% of the transfer fee is profited to the user. Thanks to the financial inclusion; people are now getting virtually banked and are trading effortlessly. This is just the beginning of the virtual money phase; we have a lot to come across in near future, and why not, the mobile phone payment method is giving rise to the virtual money trade!

Since every other technologyand innovation has both pros and cons, we will soon determine how exactly the digital currency will flourish or degrade the economy of the entire world. With more and more people slowly gaining access to this virtual market, it will be clarified whether the usage of virtual currencies will be suitable to the economic changes taking place. On the other side, many consider it as illegal and a kind of cheating to the physical money trade. The modifications and improvements made in the newly mined crypto coins are being marked as ‘wrong path made easier to walk on’! The money transfer for criminal activities is also carried out with ease. Hence, whetherthe digital currency will shape the world economy positively or negatively is difficult to answer at this stage! Till then, let’s hope that the next generation digital currency will soon combat this drawback.

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