Electronic and digital currencies like bitcoin provide a new way to transfer money globally with very low fees. While they currently lack regulations, cryptocurrencies allow migrant workers to send money home more cheaply than traditional money transfer services. The decentralized nature of cryptocurrency networks also enables peer-to-peer transactions without centralized control. However, cryptocurrencies are still in their early stages and face challenges around their status as legal tender and how they should be classified for tax and regulatory purposes.

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Digital
A word whose roots lie in the latin digitalis, from digitus ("finger, toe"); today it's use
is synonymous with televisions and computers, cameras, music players, watches, etc,
etc, etc.. However, what of electronic money or even electronic democracy?
The printing press generated a revolution in its time, hailed as a democratic force for
good by many. Novels available to the masses has been really a revolution and today
we also have e-books and technological devices to read them with. The simple fact
that the original words have been encoded into a numerical form and decoded back to
words electronically doesn't mean we hope less the words we are reading, but we
might still prefer the joys of a physical book than a bit of high-tech plastic which
needs to have its own battery billed to maintain working. Can electronic currencies
such as bitcoin really supply a contribution to positive social change in as spectacular
a way?
To answer this we have to ask what of cash, how are we to know it, use it and
incorporate it into a sustainable model of a 'better world for everybody?' Money,
unlike any other form of land, is exceptional as it may be used for anything before an
event even occurring. It implies nothing, yet can be used for great good or great evil,
and it's just that which it is despite its many manifestations and consequences. It is a
one of a kind but much misunderstood and abused commodity. Money has the
simplicity of easing buying and selling, and a mathematical complexity as
demonstrated by the financial markets; and yet it doesn't have any notion of
egalitarianism, ethical or moral decision making.
It serves as an autonomous entity, however it is both endogenous and exogenous to
the worldwide community. It has no personality and is readily replaceable, yet it's
treated as a finite resource in the world context, its expansion regulated by a set of
complicated rules which determine the way in which it may behave. Yet despite this
the results are not entirely predictable and, furthermore; a commitment to social
justice and an aversion to moral turpitude isn't a necessity of its use.
In order to get a money to effectively do the financial functions required of this, the
intrinsic-value of money needs become a generally held belief by those using it. In
November 2013 that the US Senate Committee on Homeland Security &
Governmental Affairs confessed that virtual monies are a valid way of payment, an
instance of this is Bitcoin. Due to the very low transaction fees billed by the 'Bitcoin
network' it offers a very real approach to permit the transfer of capital from migrant

2. workers sending money back to their families without having to pay high transport
fees billed by firms.
A European Commission calculated that if the global average remittance of 10 percent
were decreased to 5 percent (the '5x5' initiative endorsed by the G20 at 2011), that this
could result in an additional US$ 17 billion flowing into developing countries; using
this blockchain would lessen these charges near to zero. These cash transfer
companies who extract wealth from the machine might become dis-intermediated via
the usage of such an infrastructure.
Probably the most important point to note about cryptocurrencies is the spread and
decentralised nature of the networks. With the growth of the world wide web, we are
maybe just seeing the 'tip of the iceberg' in respect of future innovations that might
exploit undiscovered potential for permitting decentralisation but at a hitherto unseen
or unimaginable scale. Thus, Whereas in the past, when there was a need for a
massive network it was only achievable using a hierarchical structure; with the
consequence of the requirement of broadening the 'power' of that network to a small
number of individuals with a commanding interest. It might be stated that Bitcoin
represents the decentralisation of cash and the move to a simple system strategy.
Bitcoin signifies as significant an advancement as peer reviewed file sharing and
internet telephony (Skype for example).
There's hardly any explicitly produced legal law for virtual or digital monies, however
there are a vast variety of existing legislation which may apply depending on the
country's legal fiscal framework for: Taxation, Banking and Money Transmitting
Regulation, Securities Regulation, Criminal and/or civil law, Consumer
Rights/Protection, Pensions Regulation, Commodities and shares regulation, along
with others. So the two important issues facing bitcoin are if it could be considered as
legal tender, and when as a advantage then it is classed as property.
It's common practice for nation-states to specifically define currency as legal tender of
some other nation-state (e.g. US$), preventing them from recognising other
'currencies' formally as currency. A noteworthy exception to this is Germany which
allows for the idea of a 'unit of account' which may therefore be used as a kind of
'private money' and may be used in 'multilateral clearing circles.
At another context of being considered property the obvious discrepancy here is that,
unlike land, electronic monies possess the potential for divisibility into much smaller
amounts. Developed, open markets are usually permissive to electronic currencies.
The USA has issued the maximum guidance and is highly represented on the map
below. Capital controlled economies are efficiently by definition contentious or

3. aggressive. As for many African and some other states the topic hasn't yet been
addressed.
Starting from the fundamentals of democratic participation it's immediately evident
that bitcoin doesn't fulfill the positive societal impact element of such an aim in so far
as its value is not one it can exert influence over but is subject to market-forces. Yet
any 'fresh' crypto-currency may provide democratic participation once the virtual
money has distinct rules of government and issuance depending upon more
environmentally based democratic principles.
So what if a "digital" currency could provide a valid alternative to existing types of
cash in doing the role of contributing positively to: the goals of promoting a mutually
inclusive civilization, the equality of opportunity and the marketing of mutualism; that
as their very name implies are alternative and/or complementary to a formal or
national sovereign currency? Virtual cryptocurrencies like bitcoin are a new and
emerging dynamic in the system; however in their infancy, the speed of innovation in
the field of cryptocurrencies were dramatic.
There are lots of factors that determine the 'potency' of money to bring about positive
social and ecological change; pervading political ideology, economic surroundings,
and the desire of local communities and people to pursue alternative social outcomes
whilst seeking to maximise economic opportunity, building of social funds, and many
others. If a regional digital currency could be designed to construct extra resilience
into a local economy and enhance economic outcomes then introduction on a more
widespread basis merits investigation. When the current economic system fails to
deliver it's manifested in such manner as: improved social isolation, higher crime
rates, physical dereliction, poor health, a lack of a feeling of community, amongst
other undesirable societal impacts.
Everything is at fast-paced because of the innovation due to technology. It actually
helps in a lot of Businesses, particularly on the business side. One of those tendencies
that technology has contributed is Digital Currency.
It's an internet based type of currency or medium of exchange. It can be connected
with traditional money, Forex market and remittances, because of the similarity of the
functions that is mostly on buying physical products and on paying services.
There are occasions when it is mistaken with Virtual Currency. The latter, that is
defined from the European Central Bank as "a type of unregulated, digital currency,
which can be issued and generally controlled by its programmers, and used and
accepted one of the members of a specific virtual community", is different from
Digital Currency because it doesn't have all the features of genuine money. Virtual

4. monies cannot be used to buy physical products and cannot be converted to traditional
or fiat monies.
This can also be employed with in-person payment in physical establishments and
may also be converted to fiat money, with minimum fees to no fees. In accordance
with investopedia.com, Fiat Money is announced by the authorities for a legal tender
and isn't backed by a concrete commodity. Its value may also be derived from the
relationship between supply and demand. Furthermore, it helps the instantaneous
transaction and borderless transfer-of-ownership, which can be better compared with
Fiat money.
Fiat currencies are limited by their geographic regions. This concern is solved by
electronic currencies because these are international currencies with no borders, and is
just possible online. Consumers will no longer need to pay greater price in
international payments and cash transfers as they can directly transfer money, pay
bills, and purchase products through digital currency. Also, dealers can't charge extra
fees on the consumer with no knowledge.
Digital money transfers will also be quicker compared to traditional wire transfers
which can have a long time to process. Digital transactions can take just about a
couple of minutes to complete, based upon the transaction procedure for this platform.
In addition, it's more convenient in contrast to over-the-counter bank trades which
have limited time and takes a whole lot of processes to take before it could be
completed.
Security can be better with electronic money. It utilizes a certain system which let the
user take hold of the account, which makes them self-regulatory. Information could be
backed up and encrypted to guarantee the safety of your cash. Unlike fiat currencies
which are controlled by the authorities, some electronic platforms do not have central
authority regulating them. Some electronic currencies, such as Ripple and Radar, are
still monitored and assessed by specific individuals and/or companies. These are also
attractive to people who prefer private monetary trades because most of the digital
money systems are authorised to individuals and businesses.
It also lessens the possibility of credit card fraud. Personal customer information and
credit card numbers could be stolen and be utilized to make possible bond purchases.
Since it is a purely digital trade, the receiver of the payment doesn't have any access
on the personal information of the sender, and data fraud can be averted.
Would we be better off without paper money and coin? Some say yes, and some say
no and the discussion rages on. Government tax collectors might prefer only digital or
electronic money - it's easier to control and simpler to keep taxpayers honest - but are

5. these gains worth the drawbacks? I mean what's wrong with money - you can spend it
everywhere, you can spend your babysitter, go to a garage sale, or stop at a lemonade
stand - all of which are part of the underground economy By definition and harmless
uses of transferring money.
Then you will find the illegal items, nobody uses digital money since it leaves a hint,
and that means you cannot use it to buy things you are not allowed to purchase or that
somebody else is not allowed to sell. Does it thus, make sense to get rid of the cash
that enables illegal transactions, closed down the entire underground market and when
we do, will our society and civilization be better or worse off for that alternative?
Let's discuss this will we?
Yes, a digital currency would be similar to regular currency and really we're almost
there already anyway. If we go to "digital units" and alter the paradigm to pay for the
needs of men and women who donate who are not rewarded rather now, then we'll get
more of what we benefit, as is the famous axiom. A technocrat would enjoy this
dialog as well as the thought of micro-managing the exact value of every job, but
technocrats are not as very good at considering their own created unforeseen
consequences as they pave the path to hell.
The reason humans use money today is only because things and choices are more
complex than they were previously when our species were just hunters, gatherers and
traders. Allow me to clarify; you notice, if I make hammers and you want you, but
you only Cryptocurrency have cattle, then you cannot cut off the tail of your cow to
purchase my hammer, so rather you give me 11 and you are able to sell your bunny in
the long run for $1100 and give me the one-percent of it so that you are able to build a
new barn.
Money and currency is nothing more than units of commerce thus, make things easier,
that is why it exists, but I don't like the bashing of money, digital or otherwise, where
many think it's the origin of all evil. I respectfully disagree. Please think about all this
and believe on it, since this topic does affect your life.
When we speak of cash in the current society, it's taken on many forms. From the
days of farmers trading their own plants today's digital, debit or credit card transfer
and many forms in between. Our ancestors didn't use money to get goods from one
another, instead they used barter, which is a market of private products of value for
what they needed or wanted from somebody else.
The first form of trade out of around 9,000 BC has been then came the crops, when
farmers would exchange a bushel of a single thing for a bushel of the equivalent
value.

6. As society became more complex it became more difficult to locate someone with just
what you needed or was ready to take for what you were offering and to agree on the
worthiness of every product. Out of this complexity and as trade flourished money
came into use.
The period currency, another word for money, became a way of exchange. With this
means of market, buying and selling did not have to happen in the exact same time,
every could wait till they had accumulated cash and were prepared to generate an
exchange.
It is hard to envision how our ancestors made exchanges in history, compared to the
current means of trade, with using credit cards and the electronic money or electronic
money mostly used over the net. Most often digital or electronic money is used to pay
for services and goods where as the buyer of a product Requires the vendor to contact
the issuing bank to transfer money for payments.