Difference between digital currencies, virtual currencies, and cryptocurrencies: Easy explanation.

#digitalcurrency #virtualcurrency #cryptocurrency #oldmoney #newmoney
This video is on Difference between digital currencies, virtual currencies, and cryptocurrencies description.
Chapters:
00:00 – Introduction
00:34 – What are digital currencies?
01:22 – What are virtual currencies?
01:59 – How much is a virtual currency worth?
02:31 – What are cryptocurrencies?
02:40 – How many parties are involved in a cryptocurrency transaction?
03:10 - What are the Examples of cryptocurrency?
03:33 – Comparision between digital currencies, virtual currencies, and cryptocurrencies
04:25 – Conclusion

(Explained in detail in the video)
Till the early ‘90s, gold was the currency of the world. Then, this system of gold as a currency replaced bank notes. And now, we have seen the rise of digital currencies, virtual currencies, and of course, cryptocurrencies.

To understand the difference between digital, virtual, and cryptocurrency, you’ll first need to know what they are.
(Explained in detail in the video)

What are digital currencies?
Digital currency is simple. Instead of paying in cash or coins for any transaction, you transfer the money to the other person’s bank account.

This process makes the entire money transactions procedure very efficient, quick, and convenient.

What are virtual currencies?
Digital currencies comprise notes and coins issued by banks. Whenever you send money to another person, the bank facilitates this transaction and is the third party involved.

Banks do not issue virtual currencies, but rather people create them.
(Explained in detail in the video)
If you send virtual currency to someone else or receive it, no third party is involved in the transaction.

Cryptocurrency is an example of a virtual currency.

(Explained in detail in the video)

What are cryptocurrencies?
Cryptocurrencies are virtual currencies created by people on a decentralized blockchain network.

You can send and receive cryptocurrencies without the bank getting any information about your transactions.
(Explained in detail in the video)
Bitcoin, Ethereum, Dogecoin, etc., are all examples of cryptocurrencies.

Comparing all three
First, there was normal money in the form of banknotes and coins. Then, we did transactions by exchanging notes and coins.
(Explained in detail in the video)
Then came digital currencies, where people could make money transactions digitally.

But the issue that people found with this was that the system depended on banks. So hence, virtual currencies came up.
(Explained in detail in the video)
With virtual currencies, people can send money to whoever they want without the bank overseeing the transactions.

Cryptocurrencies are an example of virtual currency built on blockchain technology.
(Explained in detail in the video)

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