DIGITAL CASH in the Digital world.
As we are in the 21st century, we are moving towards developed and developing technology.In this 21st century, technology has totally changed our world from primitive to modern, where we are using various technologies made by humans.
Technology is playing a vital role in living beings’ life. We are using various modern technologies in our life.
The world is moving toward the modern era where everything is done with the help of technology. The development in technology is developing rapidly in the modern era.
In the past humans uses a barter system to exchange goods and services. The barter system creates the problem while exchanging goods and services in daily life.
The people don’t know about sharing goods and services in the term of value. After so many years they used the new system for the exchange of goods in their daily life.
Likewise, after there was the development of humans, they started to use coins and paper notes to buy goods and services.
The exchange of services and goods in cash makes humans more comfortable as well as easier. The humans started sharing goods in the value of money.
Now, the generation has become one of the most developed and civilized than the previous one. Now the people are using technology on everything that makes them more creative.
Then after this, there is the introduction of digital currency.
What is digital cash?
Digital cash is a type of electronic cash that exists only in cyberspace and has no real physical properties.
Who introduced digital cash?
Digital cash was introduced by David Chau in 1988.
Most people are using digital cash to purchase goods or pay any charges through the help of the internet. Nowadays the digital cash has become so much popular that all humans are using it.
Digital currency is like the currency used as the source of purchasing and is used as the source of cash for the payment of the online transactions done through the internet.The digital cash can be stored on an electronically sensitive card.
Some of the examples of digital cash are as follow:
- Lite coin
- Tit coin
- Peer coin
Among these coins, Bitcoin has the highest value in the current market of trade.
The Bitcoin contains the value of $58K-$60K.
The Figure Of Bitcoin: THe Digital cash with the highest value.
How digital cash works?
Similarly, digital cash is being used all over the world. The following diagram helps us to understand how digital cash works.
Digital cash is just like a currency that is used for online transactions. The digital currency value is stored or converted into digital codes.
To use digital currency first the person should have a bank account. Then the bank helps us to change the cash into the e-cash.
The bank changes the cash that a person has in his/her account. And the person uses the e-cash for online transactions over the internet.
The person pays the digital currency to the supplier where again the supplier collects e-cash into the bank. Then after he collects the cash in his account.
What is digital cash in E-commerce?
In E-commerce digital cash is a digital money product that provides a way to pay for the services or product without resorting to paper or coin currency.
Features of Digital cash
Just like paper money, digital cash also stores value on it. In the current generation, the use of digital currency is on-trend. Digital currency provides easier and safer transactions over internet transactions.
How to turn cash into digital money?
A network of retail merchants has been created where workers earning in cash can walk in to convert their cash into digital money which is further sent straight to their mobile, via an app called Fundu. We can call it a cash-in transaction.
That app also lets customers make payments transfer money.
Digital cash includes the following features.
- Stable pricing
- Cashless economics
- Fast transaction times
- Medium of exchange
- Store of value
The price always stays at a fixed state where the value of the digital cash remains constant for a longer time.
The stability in price helps to adjust every single unit of digital cash which the human has in his/her digital wallet.
As we all know, that digital cash is the value fixed for the currency that helps in online transactions over the internet
Digital currency makes the economy cashless by paying for any transactions over the internet with the help of the bank.
The people don’t have to carry money with them.
Fast transactions time
Digital currency helps to make transactions faster than earlier. The transaction becomes faster because people do not have to carry money with them.
The people do not have to wait for the exchanges that are remaining. Online transactions help to pay the exact amount of money. Even it works 24*7 hours.
Medium of Exchange
The digital currency has become so much popular and it is used worldwide. it has come into use for various purposes.
For example, it is used to pay for goods and services having from online stores, making payments while acquiring services.
Store of value
Just like paper currency, digital currency also has a value stored in it. In digital currency, the value is stored electronically.
The value given to the currency is used in the purchase of goods and services online or in any abroad country.
The value is stored electronically unless the amount is not withdrawn from the bank.
Digital currency is the value for money that is stored electronically inside the card.
The digital currency can be carried with the person inside a small card or any storage device which are reliable. We can use digital cash from anywhere in the world because it can be carried with us everywhere.
Digital currency can be transferred from any place at any time. The transferability of digital cash is so reliable and secure.
from one country to another, we can easily transfer the amount of money and can order from foreign countries. Digital cash can be transferred from one to another place in a short period of time,
Advantages of Digital Cash
Some of the digital currency is already in use nowadays for various transactions. Digital cash has some advantages. Some of the advantages are as follow:
Digital currency requires lower fees
- Digital currency requires a low fee rate because it is used all over the world and everyone uses it for daily transactions over the internet.
- Digital cash is playing a vital role in this generation.
- Digital currency helps to provide protective transactions as well as transferability of money over the internet.
- The digital codes are set inside these currencies which cannot be stolen from them until the cash holder does not give authority for the transaction.
Simpler international transactions
- The value for digital currency is fixed because it is acceptable worldwide, which makes the fees for the transaction low and people can easily do transactions all over the world and where they want.
- Digital cash became more popular because it contains lower fees as well as easier while doing any transactions.
- The digital is secured because it has digital codes fixed on it which makes the transaction secure and no one can steal it until it is not deposited into banks.
- Digital currency provides and safe and fast transactions. It helps to minimize the fraud transaction because it has digital codes set on it.
- Digital currency makes the transaction more reliable and faster than the previous one.
- The digital currency is transferred with the help of the internet into the account of the person.
- The bills or any other payment and we can purchase goods and services by sitting in the home with the help of digital cash.
Dis-advantages of Digital Cash
As every technology has its merit and demerit. Digital currency is also newly introduced. Digital cash also has some disadvantages.
Some of the disadvantages are as follow:
Can be used for the illegal transactions
- Digital currency can be used in illegal transactions.
- It’s hard for the government to track down the person by the money used from their wallet.
- Many people are using digital currency for illegal works like buying drugs and weapons from the dark web.
Data loss can cause financial loss
- When the person forgets the code of his wallet and there is no chance of getting it back and data loss cause a huge financial loss to him.
- If the wallet will get locked and the money inside it remains inside it and no one can use it.
Some coins are not available in other currencies
- Digital currency is traded in few currencies because they are coming into use.
- Until it is not fully authorized by the country there will be difficult to change the digital currency into cash.
- For changing the coins into other currency, it charges an extra amount of money so people are not using it.
Susceptible to hacks
Digital currency is the money value or coins stored digital values which can be hacked by hackers. Besides, there are high-security many people’s accounts being hacked while they are doing any transactions. In past, many of the currencies are hacked and millions of US dollars are stolen. So, there will always be a potential for another hack.
No refund and cancellation policy
- There is no refund and cancellation policy which may become a serious conflict between parties.
- If there will be cancellation of any deal between two parties then the transfer of amount can not be cancelled.
- Sometimes mistakenly someone sends some coins to another amount then, the amount can not be refunded or the transaction can not be cancelled.
So, digital currency has become a hot topic in the world. Some digital cash is being issued in the nation. The digital currency has become useful in every transaction.
People prefer using digital cash for fast and reliable transactions. Digital currency has come to the attention of people nowadays.
Digital cash has provided an alternative currency for less developed countries.
The digital currency has opened the door for economic transformations. Digital currency provides more choices for individuals to manage their finance.
If you want to know more about digital cash here is the linkhttps://en.wikipedia.org/wiki/Digital_currency/
Also if you are interested in cryptocurrency you can go through the following link \Top 10 Best Cryptocurrency to invest in 2021/