The impact of digital currency
Hello everyone! 👋
I hope everything is going well for you.
Today we will take a short look at how the money has changed throughout time.
What does digital currency mean in today's modern world?
What to expect in terms of digital currency in the future.
Especially for relatively new technology such as crypto-currencies.
It is an unavoidable fact that money is a must for survival.
Consider the adage, "Money is the source of all evil."
What I want you to focus on is the fact that if anything is large enough to be branded as such, it must have a significant impact on the world and how we live.
People lab-our hard for it every day, steal it, and are frequently prepared to die for it.
Money is frequently regarded to be restricted to the power to purchase; something one needs in order to acquire everything they require or desire.
Money, on the other hand, is much more than just purchasing power. It's been a lot more than that.
In the past, the barter system prevailed as the primary currency exchange system in which tradable services and goods, such as salt, animal skin, weapons, and other items that were in demand, were exchanged in place of goods and services. Cowry shells were the first exchange objects; and were used in some parts of Asia, Australia, Africa, and Oceania. After around 200 hundred years, the Chinese came up with the use of the first-ever standardized currency; in the form of small spades and knives designs.
King Alyattes of Turkey later innovated the previous standard to the new, improved gold coin system, which is somewhat similar to the recent times.
During the Tang Dynasty, the Chinese regained control and issued the first paper-based money. Later in the 13th century, Marco Polo, attracted by the Chinese concept of paper money, conveyed the concept to Europe.
Further down the line, n the 17th century, Stockholm's Ban-co, a Swedish bank, released the first European banknotes, which were interchangeable with a certain amount of silver coins; the birth of the concept of centralized intrinsic value of the currency.
Soon after, the gold standard was established, where money is sustained by gold and other precious metals; the establishment of the concept of centralized intrinsic value of the currency.
Having gone through so much evolution, how do we find a constant meaning to define money and its uses?
● Well, in theory, money is a medium of exchange that allows for purchase to be possible.
● To buy something translates to the use of money which further translates to acquiring an item or service.
● Money embodies the property of a medium; hence it is not wrong to define it as a store of value, meaning it is an asset that can be stored and then further used at a later date & time; without any variance in its value.
● Since money is also a unit of account; it has become a standard to measure the worth of goods and services.
● With this, some currencies are more expensive than others.
With the evolution of currency throughout the years; it has become more and more lightweight and handy.
Coupled with technological advancements made in computers and banking, it shouldn't come as a surprise that banks have developed a way for mobile payments to be made possible.
Nowadays, if we need to purchase something or pay for services, we can do so by using our mobile or computers.
With the rapid advancement in technologies, like blockchain, security; it is no wonder that paying payment through online medium is on a rise. The emergence of Bitcoin SV is an irrefutable fact, backing up my previous point.
The reason why Bitcoin SV is so popular is that it is “the fusion of data and money,” electronic cash can now be sent, securely, through peer-to-peer transactions without the meddling of any third-party institutions like banks.
Not to mention that it is completely transparent to the public.
All transactions done in the Bitcoin network, or any major cryptocurrency in general; are permanently stored on a public, immutable, database called a blockchain.
● The Bitcoin SV blockchain protocol is constant and immutable, as mentioned above;
● so its operating system is very secure, stable, and valid;
● which effectively helps us to prevent double-spending and protects us against criminals.
The functionality and practicality of Bitcoin SV have empowered developers to build a variety of business ventures, applications, and projects on top of this diamond-hard foundation; powered by the Bitcoin SV Protocol.
You can't even comprehend how massively scalable Bitcoin SV truly is; more and more transactions are being stored on the blockchain until they become next to unlimited— meaning that it will go way beyond the insignificant number of transactions made by Visa credit card network; at a measly 15 million per day.
With the prospect of complete security, stability, scalability, and legitimacy, Bitcoin SV in the future.
Different forms of Digital Currency
What is digital currency?
If we go by the definition then digital money translates to any possible means of payment that exists purely in an electronic form.
In simple terms, digital money is not a physically tangible element, like a coin or hard cash it is usually, wholly, accounted for, and transferred via online systems/medium. One very well-known form of digital money is a cryptocurrency; which is usually mistaken as a synonym to Bitcoin.
Generally, digital currency is divided into four categories.
Token money, or token, is a form of money that has little to no intrinsic value when compared to its face value; meaning— it's value doesn't depend on its intrinsic value but instead due to custom or legal enactment.
Further implying that Token money can theoretically be anything.
It can come in all shapes and sizes; as long as it is accepted as money.
Majorly Token money costs less in production than its face value. For instance, let us take the example of a banknote or a 10 rupees note; it is token money because despite its value being 10 rupees it only costs a few 'paisa' to produce.
A point to note, a gold coin is not considered token money.
2. Currency possessing intrinsic utility:
This sort of currency is not subject to any form of control and, like gold, silver, bronze, and even prepaid phone cards, has some inherent worth.
3. Centralized digital currency:
You might already be familiar to this type of currency.
Centralized digital currency is becoming more and more common in our modern society. The currency is governed by a centralized governance structure that resides over transactions. Some common examples of this type of currency include air miles, central bank digital currency, digital wallets, and all the other forms of customer loyalty points; and such.
4. Decentralized digital currency:
The many varieties of crypto-currencies were important to the decentralized digital currency. The nicest thing about such a currency is that it is not subject to centralized governmental inspection, which means it has nothing to do with any government and is uniform around the world.
As I said in one of my earlier blogs, the notion is backed by a decentralized ledger of transactions through a peer-to-peer (P2P) network, allowing participants to confirm transactions without the intervention of a central clearing authority.
● Having discussed a bit about the various forms of currency, there is one more thing I would like to address.
● Not many people know, or rather understand this, but Fiat currency also comes under the rather vast genre of digital currency.
For those wondering what is a Fiat currency, well…...
Paper currency is a currency that is not backed by a physical commodity, such as gold or silver, and is issued by the government based on the equilibrium of supply, demand, and the stability of the issuing government.
Two things to keep in mind: most current, significant paper currencies are fiat currencies, and fiat currency, like tokens, has no inherent value. Governments will sometimes print too much of it, resulting in hyperinflation; this is bad news since hyperinflation can leave the currency worthless.
I hope you guys were able to get some understanding of rather the vast concept of digital money. There is a lot more to discuss on the various forms and methods that people use, and are popular.
Take care and stay safe.
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