{"id":29609,"date":"2023-10-15T00:00:41","date_gmt":"2023-10-15T07:00:41","guid":{"rendered":"https:\/\/www.advantagegold.com\/?p=29609"},"modified":"2023-10-15T00:00:41","modified_gmt":"2023-10-15T07:00:41","slug":"digital-money-101","status":"publish","type":"post","link":"https:\/\/www.advantagegold.com\/blog\/digital-money-101\/","title":{"rendered":"Digital Money 101"},"content":{"rendered":"

What Is Digital Money? <\/span>\u00a0<\/span><\/h2>\n

Digital money is an intangible, electronic form of payment. Online technological infrastructure ensures that payments are accurately transferred and properly accounted for.\u00a0<\/span><\/p>\n

The internet has made the world smaller. With a push of a few keystrokes, buyers on one side of the world can easily purchase goods and services from sellers on the other side of the world.\u00a0<\/span><\/p>\n

Digital money not only makes the process possible. It makes it easy.<\/span><\/p>\n

How Does Digital Money Work?\u00a0<\/span><\/h2>\n

There are several different types of digital money and many variables to consider when trying to answer, \u201cHow does digital money work?\u201d\u00a0\u00a0<\/span><\/p>\n

Most types of digital money have their own unique characteristics.\u00a0<\/span><\/p>\n

The common denominator is they all fully transact electronically.\u00a0<\/span><\/p>\n

The users of digital money either send or accept a payment. That payment then processes through a system connecting the two sides of the transaction.\u00a0<\/span><\/p>\n

When the two sides agree upon the completion, the funds are dispersed and the goods sent or services commenced.\u00a0<\/span><\/p>\n

All this happens in the blink of an eye.\u00a0<\/span><\/p>\n

Some digital money uses blockchain technology<\/a> and some is account- based.\u00a0<\/span><\/p>\n

Blockchain is public, meaning there is no centralized control of the network. Each block holds data that all involved parties must agree upon. There are no intermediaries\u2014such as a bank or financial institution\u2014to control the deal flow.<\/span><\/p>\n

A blockchain is virtually anonymous. It contains no information on the user\u2019s offline identity.\u00a0<\/span><\/p>\n

Account-based digital money uses an intermediary to govern each transaction.\u00a0<\/span><\/p>\n

The intermediary determines validity, disperses funds, and handles the reporting of the exchange.\u00a0<\/span><\/p>\n

Account-based digital currency carries large amounts of user\u2019s identifiable information. They are not anonymous.\u00a0<\/span><\/p>\n

How Digital Money Differs From Paper Money\u00a0<\/span><\/h2>\n

Paper money is tangible. You can hold it in your hands. Most know it as the bills and coins we carry (or used to carry) in our pockets.<\/span><\/p>\n

Digital money lives entirely in cyberspace. It has no physical form.\u00a0<\/span><\/p>\n

Some digital money can convert to paper through ATM withdrawals or other means. When converted, it is no longer digital money.\u00a0<\/span><\/p>\n

Many see digital money as a safer alternative to paper.\u00a0<\/span><\/p>\n

Most digital money uses blockchain technology that is extremely difficult to counterfeit. Transactions across the blockchain lock at completion, and vendors face no threat of false chargebacks.\u00a0<\/span><\/p>\n

And, as we mentioned above, the blockchain affords a high level of anonymity and does not contain the personal information of the parties involved.\u00a0<\/span><\/p>\n

The arms-length completion helps eliminate theft, as no cash changes hands. Each participant owns a unique key to their \u201cwallet.\u201d Without that key, there\u2019s no way to access digital money.\u00a0<\/span><\/p>\n

Types of Digital Money <\/span>\u00a0<\/span><\/h2>\n

Digital money is probably already a part of your life. Its seamless nature tends not to draw attention, as it helps make life easier.\u00a0<\/span><\/p>\n

Some digital money examples are:<\/span><\/p>\n