Most of you will probably wonder what’s the difference between e-money, virtual money, and cryptocurrencies. The truth is that they are all under the cap of digital assets, but the differences are in the way they are regulated, stored, transferred, and spent.
Electronic money or e-money is an electronic asset that has a monetary value, and you can use the device to make payments with it. Virtual currencies are not regulated by any bank, but they are different from the popular cryptocurrencies, and at the same time, their rates don’t depend on fiat money. They are accepted by the sellers and service providers On the other hand, decentralized currencies are mostly known as what we recognize as crypto money. Now, we can try to explain it more clearly.
Regulated currencies are the money we know – the cash that can be stored on a bank card, and the e-money too. Bitcoins and other cryptocurrencies that are now popular and that can be traded through bitcoin-primeapp.com are a part of the digital money, but they include cryptography to be earned. Virtual currencies are centralized and cryptography free. People tend to be interested in all of them, but there are a few reasons why they’re avoiding them, and get things wrong, including:
Source: TyN Magazine
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1. Safety first
Most people think that if they have cash with them, their money is safe and secure. Probably you know at least one person who is withdrawing their salary on an ATM, because they believe their credit or debit cards can be hacked, and someone will steal their money. The truth is that the cash is not secure as we think. Everyone can be robbed, and that’s sad and unfortunate. Also, if someone suspicious sees you taking a pile of money from the ATM, you can easily become their target. Owning some electronic or digital assets doesn’t mean someone will hack you and steal the money, so safety shouldn’t be your biggest worry in this case.
2. Considering everything digital as same
As we explained above, there are bigger or smaller differences when it comes to digital, virtual, and cryptocurrencies. Being informed is a first step in recognizing the different types of financial assets, and deciding if they are worth trying, safe, secure, valuable, and good for you in general. Sometimes people think if they know one thing, they know everything and deny to get more informed and involved in some topic. Nowadays, digital money is a hot topic, and it’s normal for everyone to have some opinion on them, but it would be better if the people are more interested to learn more about them, since this money can change the whole finance sector in the future, and they will have hard times adapting to it.
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3. Having a personal belief about what money is
According to most people, money is everything that comes in a form of cash, including banknotes and coins. But, don’t you think that the credit and debit cards you have are money too? You don’t really hold the cash in your hands, but you can still pay for the products and services you are buying. Also, today you can use your phone too to pay. Many smartphone manufacturers and providers are already implementing their payment systems, as Apple Pay is. Another example is the vouchers you are using to collect membership points and exchange them for the fiat money equivalent when needed.
4. Thinking they will know how to use them immediately
When it comes to money, you must understand how the whole finance sector is working. Since working and managing money is not that easy as it seems, you don’t have to jump to conclusions that you know everything. There are many different layers of things you must know, before trying to perform some exchange or trade or even to buy something with your virtual assets or the e-money.
Source: Asia Times
5. Not realizing points and coupons are money too
Probably you are already a part of some loyalty program, membership plan, or you are collecting bonus points and cash while shopping online, so you can use some discount next time you order something. These points and vouchers are exchanged in the equivalent fiat money value, and you are using those benefits actively. So, no matter how much you think you are not into e-money and virtual assets, the truth is that you are already using them. Maybe you’re just not so aware of it.
6. Mixing them up with the cryptocurrencies
You are probably meeting with the word cryptocurrency a lot these days, and you know some basic things like the fact that Bitcoin is the most popular one, and that you need a lot of energy and power to mine them by yourself. But, not every virtual currency is a crypto asset, and vice versa – as we explained previously in this article. Surely it can be pretty confusing for those who are not up to date with all the news and technologies.
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7. Things are evolving
Some changes are happening overnight, and some of them can take a few years until the whole process is completed. Every one of us wants safety, especially when it comes to our income and money in general. But, we must accept that the whole system is evolving and that there are easier ways to perform the transfers and payments. For some people, it comes naturally, and for others, it doesn’t, but we still have plenty of options to choose what is working the best for us, and which things we will embrace in that process.
For those who aren’t experts in this field, all the things may still be confusing, so we recommend reading and learning a lot, so you can avoid those popular myths and beliefs about e-money and virtual currencies. We all must be ready to embrace them completely because they make our life a lot easier than we can ever imagine – and we really hope that this article will make things more clear to you.
