Electronic Money vs. Physical Money

[KingdomHearts]

Hi guys, I just want to know your views and opinion about the difference in Electronic Money (Bitcoin and others) and the Physical Money. Many people now a days are still confuse about the existence of the Bitcoin and how it differ from our Physical Money that we are using to buy necessity. I hope we could share and learn from each other. 

I think that both forms are money are now revolving in society but talking about future, which one will take over the economy is bit impossible because both have their pros and cons..physical currency is where give the more acceptance in society.  But the electronic money is also coming with ace.  People now prefer more and more electronic money than physical money.  Electronic money has multiple benefits they come with. Electronic money has so many advantages like easy transaction and there is no involvement of third person.  Easy transfer of money and you don't need to carry your purse you just need to remember your password.

At present, fiat is highly used or you can say it is used in all imaginable financial matters. As compare to this, bitcoin and other digital coins are not acceptable everywhere. The top reason behind this is public unawareness of crypto currencies. Considering the future of money, it will be juts digital currencies as the world is turning into a whole digital planet.

By watching the progress in field of AI, we can imagine how desperately people want easiness in all matters only crypto coins can ease our buying and selling.

[richkellj]

Physical money is very attractive, i prefer to hold the money on fiat like Usd or Euros, because they are pretty and everybody likes them instead of my local money.
But everybody knows that earning money through electronic money or cryptocurrencies is being very easy at the moment, because they are being very volatile and that is why almost everyone is buying bitcoin, only to make more money because it is easy.

yes you are true as i prefer the physically existed money but the electronic money is also important for us . for us both forms of money are very important we used both forms like their are countries where we can use the fiat money and there are advanced countries where most of the people are using electronic money for transactions and people are ready to accept the crypto currencies and these are very popular in the world.

Future will be all about the digital currency and there will be no use of this cash money in future its importance is limited till the digital currency system is not implemented as it gets implemented then there will be electric money everywhere because crypto has a lot of advantages as compared to the money we are sing now holding the crypto also gives benefits whereas holding cash doesn’t give penny.

[Chyton]

The pros of having electronic money is that they are indestructible to some degree, while physical money could be destroyed fairly easily.
Also electronic money is super easy to carry anywhere, while physical money (you guessed it) is hard to carry around.

[Nathland]

Hi guys, I just want to know your views and opinion about the difference in Electronic Money (Bitcoin and others) and the Physical Money. Many people now a days are still confuse about the existence of the Bitcoin and how it differ from our Physical Money that we are using to buy necessity. I hope we could share and learn from each other. 

Talking about electronic money vs physical money,  I will prefer physical money,  as for money or for financial purposese a person can more depends on the physical money.  As electronic money is dependent on the availability of electricity and Internet,  but there are still some areas in the world where people don't have neither Internet nor electricity.  So those people have to depend on physical money.  And I believe that if   a person forgets about his her password of his her account he she will not be able than to access their accounts.  And if we depend on electronic money there are chances of forgery and theft to become more active.  Hackers can hack the people accounts and they can steal their money even without their knowledge.  Bitcoin like cryptocurreny are rising but still they have their drawbacks too..  I think physical money is better than electronic money.

[zarados]

electronic money and physical money certainly have its own shortcomings and advantages. I often see the discourse in this forum that says that one day, every country will make its own crypto currency. And that's pretty reasonable. Both of these need resources for their production. But the type of resources they need was very different. Electronic money requires internet access, databases etc. are for physical money, need materials such as metal papers etc. Of course there are still many people who don't recognize electronic money, let alone people in the interior who still use the barter system for everyday life. I think the physical money will still be used for the next few decades, before everything becomes digital.

[olubams]

Hi guys, I just want to know your views and opinion about the difference in Electronic Money (Bitcoin and others) and the Physical Money. Many people now a days are still confuse about the existence of the Bitcoin and how it differ from our Physical Money that we are using to buy necessity. I hope we could share and learn from each other. 

If you are looking at the medium of exchange aspect of bitcoin, then I don't see any difference between it and the physical money because they are used to purchased basic items. But the difference here is that while the physical can be spent directly, the case of bitcoin needs to still be converted to fiat and the reason is just because of bitcoin not accepted as the legal tender yet. On the confusion of people about bitcoin, its because of the lack of knowledge which is what is creating the gap as there is no confusion at all.

[waynechong1995]

Physical money refers to solely cold hard cash only, your balance in credit card is a form of electronic money too. These days electronic money is certainly more flexible in payments as they are faster and less hassle to maintain, cryptocurrency is electronic money too except its value is built on community perception, could be generated only though mining means, has limited supply while the rest are printed, issued and legalized by their respective government agencies. Both has up and down sides but in the end holding cash is better in real life and there is nothing you couldn't buy by exchanging it.

[catapult]

The using of the cryptocurrencies in the world is increasing day by day, but I think the era of the physical money will never end. Despite the many easiness of the cryptocurrencies, I think many people will continue to use the physical money. And I think its the strongest reason will be the lackness of technology.

[SMSabuj]

Personally, I like Electric money or Digital currency. Because electric money is so safe and flexible. I love Bitcoin too. Bitcoin is the most secure and safest currency all around the world. But unfortunately, Bitcoin is not legal in our country. For that reason, we can't use Bitcoin freely.

[Zero.X]

Physical money is here to stay for a while. Unless you can convince others to give up their cash

[maku]

There's a lot of distinct differences that could be drawn between the two.

1. Fiat can be created from thin air; cryptocurrencies has a set amount of coins to be mined/acquired.
2. Inflationary (fiat) vs Deflationary (cryptocurrency)
3. Region-restricted purchases (fiat); shopping with no borders (cryptocurrency)
4. Requires an intermediary to store money (fiat); you're your own bank (crypto)

These are some of the things that differ crypto from fiat. There's a lot more aside from those things but that's just what I thought off the top of my head.

1. I know that you can't add more coins to existing coin cap but still, new cryptocurrency can be created out of thin air as well, look at the amount of new altcoin created every day.
2. At this point it is hard to say how bitcoin or other cryptos will scale, we have not entered the phase of deflation as new coins are still being mined.
3. Pretty much I agree with you here, the minor problem is really limited selection of merchants/services accepting BTC payment.
4. Not exactly, you can store your cash on your own, but yes banks are kinda obsolete and harmful entities IMO.

[Oilacris]

Personally, I like Electric money or Digital currency. Because electric money is so safe and flexible. I love Bitcoin too. Bitcoin is the most secure and safest currency all around the world. But unfortunately, Bitcoin is not legal in our country. For that reason, we can't use Bitcoin freely.

We do really love bitcoin but yet it does really have the limitation which is really sad to think off that we can spend or make use of it since its not still being considered worldwide for which we cant use it directly but yet we do still have the hopes for this thing to happen.Electronic money would surely happen if government would decide to convert into this new way monetary system but complete conversion would really takes time.

[McOdin]

I think the concept of differentiation that they need to understand is the idea of decentralization.

Yeah, you've told them about it being digital, but what about it?
It's better to tell the people that through Bitcoin, the power of the market is returned to the market.

[bitllionaire]

Physical money is here to stay for a while. Unless you can convince others to give up their cash

Currently we do need for both the currencies. In fact bitcoin is still not so much mature and is not yet so much popular to be use throughout the world. i think we can expect that the popularity of bitcoin will be increasing from time to time and very soon we will be the most popular currency of the world people will even reduce the use of fiat currency, because bitcoin will be the only option through which they can fulfill all their needs and requirement but very honestly it will take some more time and therefore we also cannot ignore the importance of  bitcoin.

[Al Amin]

Basically physical money / fiat and electronic money are the same. In the same sense can be used for buying and selling, but each of the money has weaknesses and shortcomings. Where in one side for example we buy our rice easier to use fiat. Many people use electronic money is when shopping in online figures there is an advantage we use electronic money / digital.

[SirLancelot]

Physical money will spend a lot of budget for its creation, eventually the world government will forget this and start switching to the e-money system, they will allocate the budget to the source of the currency-forming nature for other businesses. What the world needs now is efficiency so everyone will switch to consolidating e-fiat with cryptocurrency.

With the advancement in technology, things are changing quite rapidly. Since the time this concept of digital money has been introduced to this world, things are changing a lot. Physical money is only used for meeting your daily based needs. Otherwise, it is only electronic money which is gaining the attention of most of the investors as well as the traders sitting in the international market.

[techte7]

Another differentiator between digital and virtual is that digital currencies are based on two digits 1’s and 0’s. However, virtual currencies are created through cryptographic algorithms, and that’s why they are also known as Cryptocurrencies.

[imstillthebest]

I think electronic money is the future of money and all financial transactions, bitcoin is safe and easy to use than paper money the stress of using paper money is some time much to switching to electronic money is the best and the safest thing.
Let think of how much is spent by the central banks of different states to created physical money compared to the amount spend in creating electronic money the gap is wide.

i think no because if that happens , many of people will struggle to use electronic money or digital curencies and mostly the poor countries will be affected on this and they cant probably catch up on the latest trend of the economy , so iguess fiat money are still important and willl not replace by bitcoins or any cryptocoins in any means.

[FrueGreads]

Another differentiator between digital and virtual is that digital currencies are based on two digits 1’s and 0’s. However, virtual currencies are created through cryptographic algorithms, and that’s why they are also known as Cryptocurrencies.

I think you are mixing the terms here. I think all virtual currencies are still digital, if you talk about 1' and 0'. They are run on a computer, so they have to be represented by that eventually. The main difference, at least for me, and I think I'm correct on this, is that virtual are not backed by fiat. And not talking just about crypto here, the currency you use in a game is also a virtual currency (and you can buy it with fiat as well in some games). So it's just not a crypto that is a virtual currency, but all of them are still digital.

You can however have digital cash, and that of course is digital money, but it truly represents fiat. You use digital money when you use a bank card, or paypal, or make a bank transfer, or all sort of things like that.

There are a lot of differences between crypto and fiat of course, but most of them have been mentioned already, so no point in repeating them, but don't say that crypto isn't digital.

[dExplorer]

Bitcoin is a digital currency and its just a representation of money online. Wherein you cannot have a chance to see or touch in real life. But its powerful enough to use as a transaction online and can also be use to buy in a store just like our paper money