Digital money
- It’s also real money, but stored in a bank account.
- Directly controlled by banks, indirectly by government.
- Transaction can be done digitally using bank website/app
- Limited to customers connected to banks.
- Less Risky, guaranteed by banks (until they go bankrupt), backed by government policies & regulation.
- Value of money keeps depreciating. (as more money is being created by will of government, depreciating value of your money)
- Mistakes can be corrected by banks.
- Accounts can be freezed by governments.
Virtual Money
- Virtual Tokens, considered money by community who believes/trust in the tokens.
- Created by Cryptocurrency miners, they do it by contributing computation power.
- Not regulated by government, however controlled by miners and anybody can be a miner.
- Money transfer is done through digitally-signed transactions, submitted to currency-mining-network .
- Limited to people using & trusting on this currency.
- Highly risky, as no regulation and legal status. Controlled & governed by mathematical rules.
- Value of money is stable as flow of money is regulated and pre-determined. (Don’t confuse & mix with currency trading price)
- Mistakes can NOT be corrected.
- Accounts can NOT be freezed.
- Only you control your money in any circumstances
- No censorship of government or any agency.
Cash
- Real Money Controlled by government.
- Transaction of money is done manually by exchanging paper-notes or coins.
- Such money is created by governments.
- Limited to geography, where government have influence.
- Risk free, Guaranteed by government (until country go bankrupt).
- Value of money keeps depreciating. (as more money is being created by will of government, depreciating value of your money)
- Mistakes can NOT be corrected.
- Cash money can be seized.
Hope this post was helpful.
