Virtual money: what is it, the pros and cons of e-currency
The world does not stand still, new technologies appear, and as you can see, gradually people begin to use electronic currency. But many still do not risk using electronic money, because they do not know what it is and how to use it. Most people think that electronic money is paper money that can be used to pay for various Internet services. For example, the Internet or mobile communications. But is it? In this article you will learn what electronic money is, how it appeared, their pros and cons, and how to use it.
Electronic money: what is it?
Electronic money is a virtual money used to pay for services and goods on the Internet. They have the same value as regular paper money. Stored in an electronic wallet. You can open and in a few minutes close forever. You can transfer as much money as you need. For electronic money you can buy almost everything: an apartment, a car, products that will be delivered to you later.
Virtual money can be earned online. Today, the Internet is an unlimited source of income. Someone writes articles for different Internet sites, others play poker or sell goods.
History of the emergence of electronic money
Some time ago, it was hard to imagine paying for a product or service without putting your hand in your pocket for your wallet. Even with the advent of the Internet, people did not immediately think about such an opportunity. However, with the development of trade in the digital network, they appeared – electronic money. Today, with their help, you can pay for almost any product, buy a ticket for a plane or train, as well as transfer them to another person. The main difference between electronic money and the same bank card is that for the operation with their help there is no need to have a connection with the bank.
The first e-money service was eCash, created by Professor of the University of California D. Chaum. His company did not last long, but laid the foundation for the further development of this area. It took quite a bit of time to analyze the experience of eCash and the emergence of such giants as PayPal, MoneyBookers and others. Our Russian services were not going to lag behind Western companies either. In 1998, WebMoney, the largest operator in our country and a number of CIS countries, conducts its first transaction.
Every year, the possibilities of electronic money are growing, and the pace of this growth is not slowing down. More and more new business areas are being added to their area of application. One of the positive factors that allows you to bet on these payment systems is the simplicity of their conversion into real money. Any electronic money service makes it possible to attach a bank card to your wallet, withdraw to any other bank card, as well as withdraw cash at specialized cash desks.
Pros of e-currency
Virtual money has its pros and cons. Let’s first analyze the benefits of this electronic currency:
for transfers within the system, the service charges a very low commission, compared with more conventional money transfer systems.
To use the service, you do not have to disclose personal information, just register in it. True, the anonymous use of an electronic wallet often imposes some restrictions on the size of payments and withdrawals. This can be found in the relevant rules of the payment system.
electronic money services work around the clock in real time. All payments are made instantly.
the already wide range of partners of the payment system is constantly growing, giving its users the opportunity to make utility bills, pay for mobile communications, Internet providers, and other services with a minimum commission, or even without it. Often, the payment system organizes various promotions and provides discounts and gifts to its users when paying for certain goods and services on the sites of its partners.
They don’t know electronic money, neither distances, nor geographical and state borders.
Cons of electronic money
The following is a list of virtual currency flaws:
since your electronic wallet does not belong to any of the banks, the system does not accrue any interest on the amounts in the account.
nevertheless, electronic money, despite its wide distribution, is still not a generally accepted currency, and therefore, it is still not possible to pay for it.
the main disadvantage of such settlements, of course, remains their safety. There is a chance of a wallet hacking. Fraudsters and hackers are finding new ways to get your money.
If you encounter problems with the Internet or your computer, then you may not have access to your electronic wallet.