Billions of people will be using digital payments by 2023. Especially during the recent pandemic, people’s willingness to use physical methods of payment has plummeted, with digital taking up the slack.
It’s not just your credit and debit cards doing it, either. Digital money like cryptocurrencies have grown mainstream as people get more and more comfortable with digital payments.
So what is digital money?
Join us as we take a quick dive into the world of digital currency. We’ll get to the bottom of Bitcoin and get the dig on digital money companies.
What Is Digital Money?
When you hear ‘digital money’ in 2021, your mind will immediately run to things like Bitcoin, Ethereum, and Dogecoin.
That’s not inaccurate. Each of those cryptocurrencies are digital, non-physical methods of payment that can be exchanged for goods and services at online stores.
But they aren’t the beginning and end of digital money.
Digital money really just refers to any kind of digital currency that doesn’t exist in a tangible, physical form. This means things like dollars, pounds, and euros can just as easily be digital money as cryptocurrencies.
In fact, since so much of our daily spending is done through credit cards, debit cards, and Apple and Google Pay, it’s probably safe to say that digital money is now the norm, rather than the exception.
What Are the Pros and Cons of Digital Money?
Digital currency has a lot of advantages. The most obvious one is that users don’t have to carry around wads of cash with them at all times any more.
Whether a bank user has $5, $500, or $5000 in the bank, they pretty much have it on them at all times so long as they have a debit card or mobile phone payment system on them. Back in the day, of course, money in your bank account was pretty much unusable unless you made a withdrawal or filled out a check.
Likewise, digital money companies save a lot of money on renting physical space. Old fashioned banks would have to use actual vaults to store their vast sums of physical cash. Nowadays, entire fortunes are stored on hard drives, not in subterranean fortresses.
Of course, there are downsides, too. Both fiat and crypto forms of digital currency are a tempting target for scammers. Crypto exchanges and banks are pretty much never not under attack from all sorts of nefarious hackers, but they also have the best security in the world, and haven’t been beaten yet.
And you don’t get to have pleasant interactions with ATMs anymore. Still, there’s always this kind of bitcoin ATM.
Digital Payments for a Digital World
And there it is, a brief but comprehensive overview of the ins and outs of digital money. Whether you’re a crypto old hand or only just started asking, ‘What is digital money?’, now you know.
So get out there and spend it!
Liked this article? Check out our site for more!