The new era of digital technologies has driven a transformation in the global financial world. Hence, the behavior of the consumer toward making payments as well as other financial activities is rapidly changing. During this transformational phase, the “digital currencies” have become an area of interest for the public at large as well as banks and other vendors.
As the name suggests “Digital Currency” has no physical existence, it is available in digital form only. The mode of the transaction also exists in digital format. Digital Currency came into the picture in the year 1990 at the time of dot-com bubble. In the early age, there were several digital currencies invented like E-gold (1996), liberty reserve (2006). Due to law and regulatory issues, both these currencies shut down with time. Notably, digital currencies caught the limelight when Satoshi Nakamoto (the pseudonymous inventor of Bitcoin) introduced Bitcoin since then it became the most widely accepted digital currency.
Although the use of Digital Currencies is enormously increasing still, it has much scope to get into the mainstream. It is being used as a trusted payment method to buy and sell daily needs as well as to make cross-border transactions.
Additionally, the digital currency has replaced the way people used to gift. ‘Bitcoin Gift Card™’ is a perfect example of this segment. Bitcoin Gift Cards™ are available at mybitcards.com™. This platform helps to buy or redeem gift cards.
Types of Digital Currencies
Digital currency is of several types; actually, it is categorized on several parameters. It has two basic types: Convertible and non-convertible digital currency. These currencies work according to their name. Convertible digital currencies could be exchanged with fiat currency and vice-versa, whereas non-convertible digital currencies are only used within their platform such as gaming coins etc.
Besides, their functioning, these currencies could be further decomposed into two subtypes: centralized and non-centralised. The digital currencies which are controlled by a single governing body fall under the centralized category. As an example, all non-convertible digital currencies belong to centralized subtype.
In contrast to, centralized currencies, the digital currencies which do not have a single governing authority are known as non-centralized digital currency. Convertible digital currencies are of this nature; Bitcoin is the perfect example of this subtype.
These digital currencies can also be categorized on a technology basis. There are two types:
Virtual Currency: This type of currency is developed and used for a specific purpose (primarily for the use of within platform only) by their developers. Generally, it is an unregulated form of digital currency.
Cryptocurrency: These are the decentralized and regulated form of digital currency. It works on the basis of cryptographic algorithms.
How Digital Currency is going to revolutionize world economy
In recent years, the digital currency has witnessed substantial growth in the financial world, more specifically, Bitcoin, Ethereum and various other altcoins revolutionize the world economy. For now, digital currency is gradually eliminating the role of intermediaries in the financial sector. It has the potential to take the world economy to the very next level.
Moreover, the end customer (consumer) feels empowered while transferring funds instantly, securely and without any third party intervention. Digital currency can potentially expand the horizons of international markets and reinvent the way we do business, buy, sell or shop.
In other words, it is driving the world economy from centralized controls to completely decentralization. The economic structure of the financial world is set to change enormously. There are specific reasons behind this revolutionary change, which are:-
✔ Digital currency is faster, cheaper and secure than traditional transactions
✔ Digital currency boosts cross-border transactions, as it is convenient and easy to use
✔ The user with no bank accounts can use it
✔ It eliminates the risk of fraud or error, as there are no third parties involved
Digital Currency and Gift Cards
Digital currency, being a mode of payment and medium of exchange between two users, is also being adopted as a method of gift to friends and family. Specifically, Bitcoin, as an early entrant to the market, is being widely accepted in all levels of transactions between buyers as well as financial institutions.
Moreover, Gift cards are the easiest ways to gift, keep hold of digital currencies or use them at vendor locations for shopping. It could be easily exchanged with equivalent fiat currencies. Such gift cards are available at mybitcards.com™. It is the right place to buy “Bitcoin Gift Cards™” or to redeem the existing ones.
Mybitcards.com™ offers a wide variety of services through its web application like checking balance, redeem gift cards and transfer funds to the linked wallet, etc. It removes the barrier of intermediaries as well as the role of exchanges
The digital currency is playing a vital role in world economy today. It has potential to grow cross-borders and eliminate the barriers of intermediaries. Bitcoin Gift Cards™ are the perfect example to use digital currency or gift to friends and family.