Most digital currencies are created by issuing them on Ethereum or another blockchain capable of running smart contracts. The issuer must first decide how many tokens to issue, and any special rules that limit transactions or ownership. Once these choices are coded into the smart contract, the issuer pays a small amount of cryptocurrency to pay for the computational cost of issuing the tokens. Digital currencies are assets that are only used for electronic transactions. They do not have any physical form, although they can be exchanged for regular money or other assets. Although the most popular digital currencies are cryptocurrencies like Bitcoin, many national governments are considering issuing their own centralized digital currencies.
[blockquote]daniel howeller said:
Most digital currencies are created by issuing them on Ethereum or another blockchain capable of running smart contracts. The issuer must first decide how many tokens to issue, and any special rules that limit transactions or ownership. Once these choices are coded into the smart contract, the issuer pays a small amount of cryptocurrency to pay for the computational cost of issuing the tokens. Digital currencies are assets that are only used for electronic transactions. They do not have any physical form, although they can be exchanged for regular money or other assets. Although the most popular digital currencies are cryptocurrencies like Bitcoin, many national governments are considering issuing their own centralized digital currencies.
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Digital currency is a payment method that exists only in electronic form and is not tangible. Digital currency can be transferred between entities or users with the help of technology like computers, smartphones, and the Internet. Although it is similar to physical currencies, digital money allows borderless transfer of ownership as well as instantaneous transactions. Digital currencies can be used to purchase goods and services but can also be restricted to certain online communities such as gaming or social networks.
Cryptocurrency, or crypto, is a digital payment platform that eliminates the need to carry physical money. It exists only in digital form, and although people mainly use it for online transactions, you can make some physical purchases. Unlike traditional money printed only by the government, several companies sell cryptocurrency. Cryptocurrencies are fungible, meaning the value remains the same when bought, sold, or traded. Cryptocurrency isn’t the same as non-fungible tokens (NFTs) with variable values. For example, one dollar in crypto will always be one dollar, whereas the value of one NFT dollar depends on the digital asset it’s attached to. Although government regulations are absent from the cryptocurrency market, they are taxable assets. You’ll need to file any profit or loss with the Internal Revenue Service. you can read more here
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Digital currencies have been a game changer for small businesses. They offer faster transactions, lower fees, and the ability to reach global customers. By accepting digital currencies like Bitcoin or Ethereum, businesses can streamline payments, avoid traditional banking hassles, and expand their market reach. With platforms like MoonPay, businesses can easily convert crypto payments to fiat currency when needed. Those looking to diversify can even sell cryptocurrencies for cash when needed. It's an innovative solution for growing small businesses in today’s digital world!