DIGITAL CRYPTO CURRENCY GIVE YOU MORE FREEDOM, SECURITY AND CONTROL OVER YOUR WEALTH

The introduction of crypto currency as legal tender in some countries including Ecuador and Central Africa Republic has brought about an important conversation about the general understanding of Crypto and digital currency by the general public. In most cases, for a currency form to be effectively used by any population it has to be very well understood in terms of value, acceptability, durability, divisibility, supply which are some of the key characteristics of money in the traditional context.

As the world rapidly makes a quick transition to crypto and digital currency it is important to have a clear understanding of the definitive meaning of both as not to have a mix up of facts as we seek to better understand currency before we acquire or hustle for it. In beginners terms, here is the simple distinction between the two.

There are many key distinguishing factors between Digital currencies and Crypto. Digital currency refers to any currency that exists online. Digital currencies are essentially e-cash that doesn't need any special indigenous methods to encrypt them. Digital currencies are centralized, meaning that transaction within the network is regulated in a centralized location, like a bank  Crypto currency, on the other hand, refers to currency held as a record on a blockchain database. Bitcoin and Ethereum are examples of crypto currencies. Depending on the jurisdiction, crypto currencies may or may not be regulated. Crypto currencies are considered virtual currencies because they are unregulated and exist only in digital form.

For the generation of this crypto in a block chain its important also to understand a block chain. A blockchain is a decentralized ledger of all transactions across a peer-to-peer network. Using this technology, participants can confirm transactions without a need for a central clearing authority. Potential applications can include fund transfers, settling trades, voting, and many other issues. Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. Everyone is allowed to connect to the blockchain and transact on them. 

A great example of a block chain company is IBM which is a cloud platform and cognitive solutions company — it's also the largest company in the world embracing blockchain. IBM has helped more than 220 businesses develop applications and data governance tools that run on blockchain. How then do you invest in a blockchain? You can purchase stock in a company that is developing blockchain solutions, but as of January 2022, you cannot invest directly in a blockchain. Digital securities are tokenized via a blockchain, and you can purchase securitized tokens to buy ownership in a business that tokenizes its shares.

Countries such as India have had advanced plan of introducing digital currency with the finance minister saying the “Introduction of a central bank digital currency will give a big boost to the digital economy. Digital currency will also lead to a more efficient and cheaper currency management system”

It is very critical that we take on the responsibility of educating ourselves on the bitcoin and crytpto currency to enable us make the right decisions in investment and operation of the currency, gain more experience as we interact with the new technology which is the future now.