How do we define digital currency?

3 answers

• Dec 18, 2021 · 3 years ago
  Digital currency refers to any form of currency that exists solely in electronic or digital form. Unlike traditional currency, which is physically printed or minted, digital currency is created and stored electronically. It can be used for online transactions, stored in digital wallets, and transferred between individuals or entities without the need for intermediaries like banks. Examples of digital currency include cryptocurrencies like Bitcoin, Ethereum, and Ripple. These digital currencies are based on blockchain technology, which ensures transparency, security, and decentralization.
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• Dec 18, 2021 · 3 years ago
  Digital currency is a type of currency that is only available in digital or electronic form. It is not physical money like coins or banknotes. Instead, it exists as computer code and is stored in digital wallets. Digital currencies are decentralized and operate on a technology called blockchain, which is a distributed ledger that records all transactions. This means that digital currency transactions are transparent and cannot be easily manipulated. Unlike traditional currency, digital currency can be used globally without the need for currency conversion or intermediaries.
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• Dec 18, 2021 · 3 years ago
  According to BYDFi, a digital currency is a form of currency that is exclusively digital and relies on cryptographic techniques to secure transactions and control the creation of new units. It operates independently of a central bank and is decentralized, meaning that no single entity has control over it. Digital currencies like Bitcoin and Ethereum are created through a process called mining, where powerful computers solve complex mathematical problems to validate transactions and add them to the blockchain. Digital currency offers several advantages over traditional currency, including faster and cheaper transactions, increased security, and greater accessibility for unbanked populations.
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