What Is Digital Currency & How Does It Differ From Normal Fiat Currency

Digital currencies are a form of electronic money, that are as liquid as normal fiat currencies. There are currently over 600 digital currencies that are also known as cryptocurrency, that are already in the market. They function the same way as regular currencies, except that they use cryptographic techniques to ensure they cannot be changed. Cryptography offers with it the ability to securely store and transfer sensitive information.

Cryptocurrencies are based on complex computer encryption and mathematics rather than the traditional money and the banking system, that can now provide more faster and cheaper financial solutions. They are not backed up by a country's central bank or gold reserves but by the distributed community of users of that system. This allows users more control of their own money because there is no central control from any governments.

However, as we move into the next generation of money, governments and banks are starting to create their own digital currencies that will allow for faster and cheaper solutions to the clients.

Many governments abroad have already found ways to regulate Bitcoin, which is the world’s first digital currency. Bitcoin is the only digital currency that acts as normal money currently that is in mainstream market.

“Some governments worldwide, have already found ways to regulate Bitcoin, as they begin to understand that the technology that bitcoin is built upon, which is a revolutionary one, is taking us into the next level of banking,” says Shireen Ramjoo, Founder of Liquid Crypto-Money institute.

Cryptocurrencies such as bitcoin was designed as a wealth enrichment currency, as it is a limited series. Because of this, the supply and demand factor of economics come into play. As more people start using it, the demand rises and because it is limited, the lesser they become. This in-turn allows for the price of the currency to continually rise, as long as there is a demand for it as it continues to grow. It is also viewed more as a commodity than a general currency.

Using digital currency is also much cheaper than using normal currencies. As the need decreases of using the middle-man directly as in this case, the bank. You can now send money directly to anyone in the world and it can clear in minutes. There is no need any longer to wait for our banking system's traditional verification & clearing processes that usually takes a number of days. Another advantage is that there is a minimum fee to transfer money whether you send R100 or R1 00 0000, it’s a standard fee of 0.01%.

"Essentially, what we are seeing is that we now have more options to becoming our own bank and taking full control of our finances, if we choose. The blockchain technology has brought with it another level of how we will now be doing banking and refining it in the future," says Ramjoo.

The blockchain is a revolutionary transparent system that was created with the world's first digital currency, Bitcoin in 2009. It is a public-ledger that records all the transactions that happens worldwide of users transferring or receiving bitcoin and updates live. Anyone can view this at anytime and moment. This is the key innovation that bitcoin brought, and what allows it to be decentralised. And this is what other cryptocurrencies stem from.

Issued by:
Liquid Crypto-money Institute
L: 011 079 6062
E: [email protected]
S: www.liquidmoney.biz