Recently, virtual currency and digital currency in the coin circle more and more popular. Although many people talk about this topic, few people know how to distinguish between these two different things. Here's how to tell!
1: What are virtual coins?
Virtual currency refers to the use of Internet technology, real currency through computer calculation to generate digital form of trading tokens. This allows users to earn virtual assets, such as coins or yuan, without using real money to buy and sell, thus achieving a combination of virtual and real economy. This is amm airport. This is the advantage of virtual currency -- it is not limited by location and time, so it can better meet the market demand; At the same time, its algorithm is more complex and difficult to crack, so it is safer and more efficient than traditional money. In addition, virtual currencies have features that integrate with blockchain, making them more censor-resistant.
2: Why the distinction between virtual and digital currencies?
In the coin circle, virtual currency and digital currency are two different concepts. Both can be used for trading, but there are some clear differences between the two. First, virtual currencies have a reserve of value, which digital currencies do not have. Second, virtual currencies are often thought to be linked to real-world material, and thus their prices fluctuate more, while digital currencies do not. Finally, virtual currency is not a currency in the real sense, but an economic tool, which cannot be converted into other goods or assets, and thus cannot provide more services for the real economy. However, digital currency can be converted into physical wealth, which can provide more direct and effective support for enterprises, governments and individual investors.
3: How to distinguish virtual currency and digital currency
In the coin world, virtual money and digital money are two very similar assets. However, there are some important differences. First, virtual money is usually issued in digital form, while digital money is traded over the Internet. Moreover, virtual currencies are mainly used for investment, so few people will actually buy one; Instead, digital currencies are considered more secure, flexible, and can be accessed or traded into various virtual currency markets anytime, anywhere. Second, virtual currencies may be limited because they need to be accepted into the physical world. For example, virtual currencies are not allowed in bank accounts and cannot be freely converted into electronic cash. In contrast, digital currencies have relatively low value despite having no physical environmental constraints. Moreover, digital currencies are generally more secure than virtual currencies because they are not subject to human intervention.
In short, whether it is physical money or virtual money, they are very different. Therefore, we should choose the appropriate form of money according to our own situation.