Virtual money: what it is, the pros and cons of e-currency
The world does not stand still, new technologies appear, and as it was possible to notice, people gradually 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 with which you can pay for various Internet services. For example, the Internet or mobile communications. But is it? In this article, you will learn what e-money is, how it came to be, their pros and cons, and how to use them.
Electronic money: what is it?
Electronic money is virtual money that is used to pay for services and goods on the Internet. They have the same value as ordinary paper money. Stored in an electronic wallet. You can open and close in a few minutes 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.
The history of the emergence of electronic money
Some time ago it was difficult to imagine paying for any product or service without putting your hand in your pocket for a wallet. Even with the advent of the Internet, people did not immediately think about this possibility. However, with the development of commerce 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 of electronic money from the same bank card is that to carry out transactions 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 exist for a long time, but laid the foundation for the further development of this area. It took quite a bit of time to analyze the eCash experience and the emergence of such giants as PayPal, MoneyBookers and others. Our Russian services were not going to lag behind Western companies. In 1998, WebMoney, the largest operator in our country and several CIS countries, conducts its first transaction. And after a short time in 2002, another domestic giant, Yandex.Money, presented its product in the Internet space.
Every year the possibilities of electronic money are growing, and the pace of this growth is not slowing down. In the area of their application are added all new and new areas of business. One of the positive factors that makes it possible to bet on these payment systems is the simplicity of converting them into real money. Any e-money service gives you the opportunity to bind a bank card to your wallet, display it on any other bank card, and also withdraw cash at specialized cash registers.
Pros of e-currency
Virtual money has its pros and cons. Let’s first analyze the advantages of this e-currency:
for transfers within the system, the service charges a very low commission, compared to more familiar money transfer systems.
to use the service, you do not need to disclose personal information, simply register in it. True 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.
e-money services operate around the clock in real time. All payments are instant.
the already wide circle of partners of the payment system is constantly growing, enabling its users to make utility payments, pay for mobile communication, 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 websites of their partners.
They do not know electronic money neither distances, nor geographical and state borders.
Cons of electronic money
Below is a list of the disadvantages of virtual currency:
since your e-wallet does not belong to any of the banks, the system does not accrue any interest on the amounts in the account.
Yet electronic money, in spite of their wide distribution, is still not a generally accepted currency, and therefore, not everything can still be paid by them.
The main disadvantage of such settlements is, of course, their security. There is a chance of breaking the wallet. Scammers and hackers are finding new ways to get your money.
If you have problems with the Internet or your computer, then you may not have access to your e-wallet.