Currencies like Bitcoin and DasCoin exist digitally only. They are not, and never will be, physical money, like euro’s or dollars.
In the real world making a transaction with physical currency is easy. But online it’s harder to tell if someone really owns the asset they claim without a third party like a bank to verify if they are telling the truth.
This is why many digital currencies use blockchain technology to record and verify all records and transactions. Not having to rely on a bank makes transferring value faster and safer whilst removing large bank fees on international transactions.
You may sometimes hear digital currencies referred to as ‘Cryptocurrencies’. Cryptography is a type of encryption used to add additional security to blockchain based currencies, which is why they are sometimes referred to as ‘Crytpocurrencies’.
Blockchain & Bitcoin
Blockchain technology was invented to create a new type of digital money, Bitcoin. Bitcoin is currently the world’s largest Cryptocurrency with tens of billions of dollars actively exchanged in Bitcoin globally.
While Bitcoin leads the way for digital currencies, it has limitations. Its transactions speeds have become slow as it has gained popularity, its anonymity means it is associated with the dark web, and it doesn’t comply with existing financial regulations.
Many other digital currencies now exist that have developed more advanced blockchain technology, including DasCoin. As more people begin to use digital currency, its value increases.