Digital Currency: The Future of Money
The term digital currency seems to pop up more and more, particularly in the last year or so, as the popularity of Bitcoin has grown by leaps and bounds. Digital currency can mean many things, but in this case, we’re referring to something that has no physical presence — there are no bills or coins with this kind of money. Instead, it exists purely in the virtual world as lines of code that represent value that can be traded or spent at any time with anyone on the other side of the world. What is a Digital Currency? Digital currency is a form of electronic money. It’s money stored in electronic format, not as physical cash in your wallet. Just like you can transfer a bank account balance from one institution to another, you can transfer an amount (in units) of digital currency from one institution to another (in their possession). Digital currencies aren’t issued by any government or central bank; they exist solely as records of transactions within a large distributed computer network.
