What is Virtual Currency?

Hello again my beloved readers of the Journey to the Unknown. Today we will continue discussing about the different types of currencies and how they differ from one another. We will have a better understanding of how they work and what could be the currency in the future virtual world. Let's go ahead and discover more as we walk together in this journey.

Yesterday, we were able to understand what currency is, fiat currency and then there's digital currency. Under digital currency are cryptocurrency and virtual currencies. One thing that we have to remember about these currencies are that they are not by any means regulated by any banks nor governments. They are therefore decentralized and operates independently. Oh this is probably something that you already know, right?

Now, let's take a look at cryptocurrency first. Wikipedia says that a cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. It can be used as a medium of exchange for goods and services, even cash or any other digital assets.

How does this differ from virtual currency you may ask? Let's define it first. Well there's actually a lot of definition for it but it always boils down to it being the instrument of exchange for the virtual communities. This said, it is not used for exchange of anything that you can have physically. Usually, it's used to buy online items like games and applications. See the difference now folks?

Well, since we are heading to a virtual world, I think it would be safe to say that we can expect that this is the currency that will be used in that world since of course, it is indeed a virtual community in the real sense of the word. From tomorrow onward, we will dissect what this "Virie" of the Virternity Project really has to offer and how it would be different from the rest. After all, it's the latest currency out in the market now so it's best to learn about it on its early stage, right?

I hope I was able to help you discover something more today in my own humble way here. If you liked it, please hit the heart button and talk to me on the comment section. Talk to you again next time. Ciao'!