The world of finance is nowadays facing the emergence of a new currency called crypto currency. The latter differs from the standard means of exchange and has several characteristics that make it special. So read on to learn about the features that distinguish banknotes from crypto currency.
Main differences between crypto currency and traditional currencies
The world monetary system has been used to currencies in the form of banknotes and coins for a long time. These are highly influenced by several factors such as financial institutions, governments and many other considerations. In addition, the transactions made with the help of conventional currencies are subject to the appreciation of the various financial structures and their legality is approved by these institutions in question.
You will understand that the classical currency to which mankind has been accustomed until now is subject to total control. This is where there is a clear demarcation between crypto currency and bank bills. Indeed, the electronic currency differs from banknotes by the fact that it is issued from a decentralized system. Each holder of e-money has control over his or her currency without the intervention of an outside person.
Other features of the crypto currency
Apart from the main features that identify the two types of currencies, it should be said that crypto currency is a purely digital medium of exchange. It is subject to deflation, as unlike traditional currencies, physical crypto currency cannot be produced at any time.
In addition, every transaction made is reported in the ledger, which cannot be changed. Also, it should be noted that for each transaction in crypto currency, fees are paid and these are somewhat equivalent to taxes and can not be bypassed.
In addition, when you make transactions with crypto currency, all tasks are done with a public address, which is not the case when considering banknotes.