Electronic Money vs. Physical Money

[julzcoinbit]

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.

I think both of them are same because both of them are money but bitcoin is a digital currency and other currencies are paper currency and I must say bitcoin is little better than paper money because bitcoin price is high than any other currency and it’s also easy to carry with yourself bitcoin in now available almost everywhere and the users are going to support bitcoin.

In that point ,bitcoin is really better than fiat currency. With bitcoin, people can move their wealth in a permissionless way using their individual sovereignty. Bitcoin users can utilize the decentralized currency for operations that are typically frowned upon by third party forces. This includes online storefronts selling pornography, illicit drugs, and other black market activities. Cryptocurrencies can also be used to avoid taxation as it leaves the decision of reporting to tax officials up to the user.

[lordquanta]

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. 

1. Bitcoin  is not an Electronic Money. Bitcoin is a crypto currency.
2. Physical money you are referring is known as hard cash.

From OPs post it seems that differences between crypto currencies and fiat currency is expected. To move in that direction, fiat currency is also used in electronic form (credit cards, debit cards, meal cards etc etc) [ credit cards were being used way before internet came into existence. Thus difference between electronic money and internet money],  internet form (netbanking, online credit card payments) etc , hard cash, and much more. Tokens like cheques, demand drafts implemented from the banks in normal.
Crypto currency are different in a sense that they are peer to peer direct cash system. There is decentralized systems of blockchain which is verifying all transactions and keeping the ledgers.. The each system which is part of blockchain has a copy of ledger maintained by other nodes.

The physical or fiat currency can be printed as much you want. That is not the case. If a crypto is premined or decided that predecided amount then that amount is not being altered.

[qwertyup23]

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. 

Paper money has existed way back in the early times of history when people invented a main medium of exchange, instead of relying on the barter system. When they found out the potential of paper money, this circulated through out the world and has been accepted as the main payment for all types of goods or services. The determining factor of the price of fiat is due to the gold reserves per country. The more gold the country has, the more value their fiat is compared to other countries.

For electronic money, obviously they exists within the realm of the internet and cannot be accessed without it. The money is digitalized and the transactions are relatively hassle-free due to the convenience provided by the internet. The downside is, it is definitely subject to hacking and scamming since hackers nowadays can easily get your money from the internet. Also, not all people have electronic money due to the discrepancy of each country in terms of their economy. Some countries are developed, thus making their technology advanced compared to countries who are still on the developing stage.

[Ejanend]

it's has a lot of difference bitcoin is a decentralized currency which is not stable because its depending on the demand while physical money is a centralized because it came from the banks and the government can supplies how many money should be produce for the year. while btc the miners are the one who produced bitcoin for us.

Yeah both of them are different and the uses of them are not same as well. Digital money is not like the real money because the value and the price of the bitcoin is now increasing day by day, he bitcoin is the other best source for earning as well but in the paper money you can buy the things to invest but you cannot save it for the long time, I need to buy the bitcoin and to get the profit and the income from it.

[cbob1911]

we've already been using electronic money for a while now.  debit cards, e-checks, etc.  I dont think moving forward strictly with digital money is good in the long run.  giving the gov't the ability to track every transaction you make does not sound appealing at all. 

[aeternus]

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 do not see why there is any confusion, just explain to them that bitcoin is a form of money that is completely electronic, fiat can be physical, like cash, or can be digital, like debit cards, just explain to them bitcoin does not have a physical form and that is it.

[jaysabi]

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. 

My main concern is that bitcoin specifically and crypto generally doesn't fulfill the function of money very well. As far as electronic money goes, it's a horrible option. It doesn't store value well and it has low utility for transactions (although the second is an extension of the first point, it would probably have more utility if it wasn't so volatile). Contrast that with electronic fiat, and there's no comparison. Electronic fiat is leaps and bounds above bitcoin in terms of how useful it is as a currency. I think people expecting bitcoin to replace electronic USD are really overestimating it's usefulness in the future. It's a pretty fine commodity, but a bad currency.

[rhodelmabanal]

I think I only rely n physical money it gives me more value than electronic . This means we are considering electronic as an instrument for physical like bitcoin and altcoins. What needs to people give to other people easily and transact faster. Physical are those you work in the entire days which we rely on our salary.

[Shenzou]

I think I only rely n physical money it gives me more value than electronic . This means we are considering electronic as an instrument for physical like bitcoin and altcoins. What needs to people give to other people easily and transact faster. Physical are those you work in the entire days which we rely on our salary.

Physical money and elctronic money are tow things that we can not seperate, we need elctronic mone yto buy things online like games, online shopping or other things, and we use physical money because it is what most people in our society uses and since we are a part of it we need to use it, but as the world starting to become more and more digitalized we soon will diviate from using parper money to just use creadit cards and electronic payments.

[potatocorner]

Electronic money can be accessed through online or electronic: as what we call it. We can buy online goods from it, and we can transact it in just using internet connection. Physical money, on the other hand, is what the world is currently using now. It has many different currencies; for every country there is own currency. Time will come that if we use too much internet access in all things, we will use more electronic money than the physical.

[iamMhew]

Electonic money (cryptocurrency) and Physical money are totally different so its hard to tell on the other people which is easy to use, mostly for those country that not enough internet connection or didnt know how to use internet to use this electonic money. but for those people who luckily had internet connection and have gadgets to use electronic money, they can use the benefits of it by using electronic money, Electronic money is more easy to use and carry than the physical money.

[MinMan]

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.

Everything in this world is transforming to digitalized world for example online payment and the use of ATM machine without a clerk or other paper use like checque so I am also thinking that the electronic money will get the hold of the market in future although there will be some uses of physical money but up to local uses.

[Smarty14392]

Too many upsides and downsides to those respective currencies. To name a few, physical money are readily liquidated while the other is not. It can handle instant and micro transactions. E-money's strength though is to long distance transactions and it has ledgers which record payments. Both complement each others weakness so they can co-exist rather than replacing one or the other.

I don’t think that there is any way with which we can make a comparison in between paper money and electronic money. Both of them are entirely different things and there is no way that we can compare them. Paper money is being used since centuries while digital money is introduced only few years ago. Moreover, paper money is good for spending while digital money is good for investing.

[yojodojo21]

Differentiation of the given question :
Electronic Money is used For Transaction as payment Through Online, Like Paying in any Merchants throughout The Internet.
Physical Money is What We call FIAT. We use it to Pay in the Real World through Exchanging You Get What you want but still pay for The Price.
Electronic Money Is In the Virtual World.
Physical Money is in The Actual World.

[Shendy23]

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. 

Agreed, there's a lot of misunderstanding.

I think part of it starts with how you're articulating "electronic money".

Fiat money is physical and electronic. In fact while studies say most of the money supply for the Dollar (for example) is physical (paper, coin), most of the transactions are electronic (i.e., debit card, credit card, ACH transfers).

There are different types of currency which are created by different entities, used in different geographic locations, and have different amounts of buying power (and therefore value compared to other currencies). Each currency can be transacted via electronic or physical means.

Ok, that make sense? If not let's talk.

More specific to your question: what's the difference between Bitcoin and Fiat currencies?

Fiat currencies are controlled by a central entity (i.e., government or bank). This central entity then controls the amount of their currency that's in existence and up to this point that system fiat system has followed the principle of creating more money when it's needed. This creation of more money supply reduces the value and spending power of the existing supply of money. Can you see how these characteristics may be harmful for the public?

Crypto-currencies (e.g., Bitcoin) are not controlled by a central entity, and money supply is finite. This allows the money unit to increase it's spending power as demand increases and supply stays (relatively) constant. They "crypto" part refers to the cryptology used to secure transactions. This is why it's nearly impossible to hack a wallet's private key unless the hacker finds the actual private key or finds your account password.

Ok. I'll stop there...what questions do you have?

Hi, Thanks for this explanation. I see the words ''its nearly impossible to hack a private key" but we already heard cases that there are wallets that are hacked. That this means it would be regulated soon? and if will be regulated, will the value of  the bitcoin goes down?

[MAJICOIN]

There are pros and cons of all these physical money and electronic money both are money both are acceptable and both are used everywhere in the world. In the modern time people are not using paper money they just use their credit or debit card for payments in the world. They are tension free from theft etc.

[BTCeminjas]

The comparison of both currency are really have a big difference they are both useful to us, electronic or digital money is the crypto currency money that by using internet connection we access payment transaction through this while physical money or a paper money its a handy money which is we can purchased without internet connection.
This both thing can't compared because they are same currency that we need.

[bitcad4u]

The comparison of both currency are really have a big difference they are both useful to us, electronic or digital money is the crypto currency money that by using internet connection we access payment transaction through this while physical money or a paper money its a handy money which is we can purchased without internet connection.
This both thing can't compared because they are same currency that we need.

Electonic money (cryptocurrency) and Physical money are totally different so its hard to tell on the other people which is easy to use, mostly for those country that not enough internet connection or didn't know how to use internet to use this electonic money.Where as Physical Currency is used by common People.No need of Internet Connection and all.

[bitllionaire]

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.

I think both of them are same because both of them are money but bitcoin is a digital currency and other currencies are paper currency and I must say bitcoin is little better than paper money because bitcoin price is high than any other currency and it’s also easy to carry with yourself bitcoin in now available almost everywhere and the users are going to support bitcoin.

In one sense we we can consider both as same but in fact there is some difference between the two. Physical currency is almost centralized and can be use within a specific area. or state, as every state have their own fiat currency but it cannot be use a directly for on line purposes. While bitcoin is a universal and decentralize currency which can be use as of online purposes, but still all the stores are not accepting bitcoin, but still there are some shop who know about the importance of bitcoin and they even accept bitcoin for medicine.

[usorin]

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. 

This is hard work, to convince someone that with bitcoin is safer than with physical money. If some wants to learn about it i suppose it is easier if it make a correlation with the plastic card, those are digital money to, they can't see or touch them. The same goes with cryptocoins, just that is an other, let's say foreign currency.