Each type of money has its place in the monetary system. Before moving on to the myths about money, lets look at their nature and classification. Initially, they are divided into full-fledged and defective. Among the first are gold coins and bullions, and electronic money is conventionally included in them.

The second type is paper and credit, which, in turn, are divided into bank cards, banknotes, checks, bills of exchange and electronic money. The last type is for fiat, non-fiat and virtual. Electronic money generates the greatest interest, curiosity, controversy and discussion. This is how myths about electronic money are created.

Whatever doubts may be about the viability or prospects of electronic money, they really exist and function successfully as a payment instrument. Advantages such as low commissions even for international transfers, microtransactions (fractions of a cent or a penny), speed of money transfers, characterize them positively.

Debunking myths

Some people fear the insolvency of electronic money and attribute features that are not inherent in it. For example, they claim that they are not provided with anything and do not guarantee their safety. Such a conclusion can only be made by those who do not understand where they came from on the account. Yes, in the process of exchange, electronic money may seem like only a set of numbers that change with each movement after a completed transaction.

At this stage, there is no need for real paper banknotes to see and touch. But in reality, the numbers did not come out of nowhere, as the authors of the myths about money try to prove. Despite the lack of material embodiment, digital currency outperforms fiduciary competitors in many ways.

After opening an electronic wallet of any of the payment systems (WebMoney, Yandex.Money, PayPal, Visa QIWI Wallet), the user of the corresponding resource replenishes it with real money (rubles, dollars, hryvnia, etc.) through an operator, ATM or bank card. Electronic money differs from real money in that all transactions are made in a non-cash format.

Better in the West

It is generally accepted that in developed European countries electronic payment systems are much more advanced than in the countries of the former Union. But this is another myth about electronic money. This is a conventional wisdom associated with a higher standard of living, better infrastructure. But with regard to the introduction of electronic monetary systems, one cannot speak of a lag, in particular of Russia and Ukraine. Citizens of these countries who are users of the electronic form of payments can be calm, they will not suffer from the imperfection of the virtual payment system. In addition, digital money is rapidly gaining popularity in the former Soviet republics and in the third world.

Online only

The area of use of electronic money is quite wide. Although the creators of the third myth claim that the scope of their use is limited only to the Internet. The only part of the truth is that you cant do without the web to make transactions. But virtual currency is used not only in the vastness of the virtual world.

Special cards have already been created that can be used to pay in stores. The possibilities of its use are still limited, but in the future they will clearly be expanded. It is not yet possible to buy an apartment or a car with such a card, but any household item or clothing is quite possible.

Electronic currency is not real

Dealing with the first myth, which echoes the next, we have already said how money appears on a virtual wallet. The myth about money that it is not real is understood by those who do not allow themselves to be deceived. One has to be surprised at the persistence of official structures and financial institutions that refuse to acknowledge the existence of cryptocurrencies. Meanwhile, the total capitalization of Bitcoin alone has exceeded $ 6 billion and continues to grow.

Fear of virtual money

Seeing danger in everything new is a characteristic feature of those prone to panic caused by fear. It manifests itself very clearly in relation to the new type of money. Someone came up with the idea that a bank card is much safer to use than electronic money. And others piously believed in it. This is actually another e-money myth. If you look closely, you can be convinced of the absolute groundlessness of such a warning.

As in the banking system, where a secret code is entered, a password is required in the electronic one. In addition, more advanced techniques are constantly being introduced in modern virtual payment systems. Large companies have formed an Alliance (with the participation of Google and PayPal) to develop new, close to ideal solutions that can significantly strengthen existing security standards. The role of the password will be performed by a separate mobile USB device, which will put an end to the security system of the electronic wallet.

Myths about the electronic cryptocurrency Bitcoin

One of the varieties of electronic money is Bitcoin. It surpasses all currencies like it in the number of myths about it. Here are some of them:

The myth that Bitcoin is no different from their peers. This is not true, the main and important difference is the lack of centralized management.
Bitcoins cannot fulfill all the functions of fiat money. On the contrary, in addition to all inherent in ordinary currency, their functions are much broader.
Cryptocurrencies can be destroyed by the governments of states due to their illegality. In practice, this cannot be done because there is no starting point that could stop the system. Such a decision is beyond the power of any government.
The nature of such myths is such that they appear on the basis of ignorance, ignorance, misunderstanding. In the case of electronic money, we can say that they are invented by ardent opponents, conservatives and ignoramuses.

The MIT Technology Review has published a business report on the future of digital money. Its pages contain information on research of the latest technologies and their application in online payments.

By the way, the report saw daylight after announced the introduction of a new feature - the implementation of money transfers and various transactions through the Messenger application. The material suggests the possibility of integrating large-scale technologies into promising projects in the financial sector, including Apple Pay, Alipay from Alibaba and Bitcoin.

The new payment system is an additional function that allows you to attach a Visa or Mastercard and, on free terms, make money transfers, pay for goods and services from various Android and iOS devices, as well as from ordinary computers. The administration informs that special systems are able to encrypt the connection to the service, which will keep the information about the users bank cards secret.

For this, standard hardware and several levels of protection are used. Thus, we can say that the money on and the transactions made with it will be under strict control and reliable protection. A group of professionals specializing in combating attacks by hackers and virus programs is working in this direction. The slightest suspicion of intrusion into a confidential field is constantly monitored.

dispenses with commissions for making money transfers, not seeing the point and need for this, because the issue of monetizing the payment system is not being considered. The main challenge facing the service is to attract as many members of the Messenger application as possible. Those who prefer it will not need to contact other payment systems, for example, PayPal or Google Wallet, when making transactions.

There is no denying the high level of popularity of one of the largest platforms Messenger, which is visited by at least 500 million people every month. And the acquisition of another WhatsApp messaging platform, which cost about $ 22 billion, added more than 700 million to its existing user base.

s payment system is easy to use, and it can easily complete both conventional and microtransactions.

The manager of the popular social network, Steve Davis, talked about the ongoing discussions on the topic of money. The service plans to create ideal conditions for its users to solve monetary problems within the application of this network.

There is a publication in The New York Times that reports on s plans. Their implementation is facilitated by the huge scale and wide opportunities that the service has. Experts suggest that the network is capable of revolutionary transformations in improving the payment system. There are new opportunities to expand its functions: in addition to money transfers between users, payment for goods and services purchased in online stores.

An example of this would be the digital currency Credits, which is suitable for paying for goods, services and virtual gifts to online friends.

Such virtual money serves not only as a means of non-cash settlement or exchange, it can also be converted into rubles or the national currency of other countries, and withdrawn into cash, but also purchased for rubles, dollars, hryvnias, etc.

MIT Technology Review notes that this largest social network can play a leading role in transforming the face of digital innovation.

For , the relationship with Bitcoin remains an open question. After all, on the technical side, it is not difficult to add a Bitcoin wallet to the payment system of the social network and use Bitcoins for financial relations.

The likelihood that the service could become a Bitcoin supporter is high when you consider that the head of the Messenger department, David Markus, is a long-time Bitcoin supporter. Well-known blogger Jimmy Song also believes that will recognize Bitcoin and make it part of its financial plan, and for the long term.

The popularity of is undeniable, as is the popularity of the Bitcoin cryptocurrency, which is becoming known to new millions of people every day. Its high rate cannot but arouse the interest of such a large social network. After all, if you bring these two systems closer to each other, you can get an amazing result, which the largest IT giants will not be able to keep up with.

payment system uses its e-currency Credits. The system uses a huge variety of currencies, each user has the right to convert money in the one that suits him best. To become a member of this system, you need to register and create an electronic wallet.

Some people believe that the creation of such payment systems is a useless phenomenon, devoid of any sense. After all, electronic financial systems already exist, so why duplicate them. However, supporters of their own payment platform see this not only as meaning, but also as a significant benefit that can be derived from increasing the number of users, which is an important component of every Internet resource.

The emergence of electronic money is driven by the desire to expand the capabilities inherent in conventional fiduciary banknotes. What is most invaluable, especially in the age of high speeds, of course, is time.

With the aim of saving it, unique technologies are being created to improve processes that in the recent past required huge time resources, training of qualified personnel, and the use of expensive equipment.

So, instead of the usual letters that went by mail for several days, electronic ones came, which can be sent to anywhere in the world almost instantly. And free communication on Skype surpassed the wildest expectations.

There is no longer the need to shell out for such expensive long-distance and foreign calls. Even science fiction writers did not write about this. But today we are talking about electronic money, which was also invented for the convenience of calculations, storage and, again, to save time. The possibilities of electronic money have been expanded to incredible parameters, the main ones are:

Buy any item from the Internet market.
Payment for services.
Payment for online games.
The ability to earn and accumulate in virtual wallets.
Purchase tickets to theaters, cinema, concerts, air and train tickets, travel packages, etc.

The main types of electronic money

Before considering what opportunities electronic money has, lets highlight the main, more well-known types:

Yandex money.
Webmoney.
Qiwi.
RuPay.

If we consider electronic money in a broad sense, including cryptocurrency among them, it is worth paying attention to its main types:

Bitcoins.
Litecoins.
Primecoins.
Peercoin.
Namecoin.
It is impossible to name all species, because they are in the hundreds. Cryptocurrency is developing by leaps and bounds, it is becoming not only a means of payment, but also an object of exchange, earnings and trading on the Forex market.

Electronic currency and its ubiquity

The main trump card of virtual money is its form - virtual. It is impossible to touch and hear the rustle of banknotes or the clink of coins. But this does not detract from their merits or question their existence. After all, they can buy the same thing as with ordinary money: clothes, an apartment, a car, any thing. By the way, it doesnt matter if not all online stores accept payments in cryptocurrency. It can be easily converted to any other.

Funding a virtual wallet is as easy as making a virtual transaction. This can be done in different ways: with prepaid cards, transfer from another bank account, through an ATM.

You can talk a lot about the possibilities of electronic money, because, indeed, there is something to say. A very important characteristic point is the speed of the money transfer. Is it worth comparing this process with the calculation of ordinary money, for example, through the post office or bank:

Long standing in line at the cash desk of a bank, post office, store or institution.
Waiting until all bills and coins are counted.
Possible presence of counterfeit banknotes, and, as a rule, of large denomination.
Getting negative energy from possible conflicts with bank employees, store or customers.
What possibilities of electronic money can be considered the most remarkable? Perhaps, those that are hidden in their advantages and exceptional properties that fiat money does not have.

Benefits of e-currency creating additional opportunities

How can you object to the fact that digital currency cannot be counterfeited? And this is its undoubted advantage. After all, having virtual money, you will never have to experience what the owner of paper money experiences when there is a fake among his notes. He is upset not only by the failure of an important acquisition, but also realizes that he is trite fooled by a counterfeiter.

It doesnt matter that virtual money cannot be touched, but a thief will never touch it. It is very difficult to steal money from a virtual wallet. Virtual wallets with electronic money are equipped with special protection. And this is not just a wallet for storing money, such a wallet also contains all the information about the transactions performed. This is far from what we are used to with ordinary money, which very quickly disappears from an ordinary wallet. And we cannot remember where and what we spent them on.

Using an electronic wallet, which is an excellent assistant in keeping track of expenses, there is no need for keeping a family budget in a notebook, in which they are used to recording all income and expenses for a certain period.

The possibilities of electronic money are such that they can be compared, for example, with a mobile phone that replaced the usual landline. Once people were happy about the washboard, but now washing has been reduced to pressing one button on a special machine Amazing mobility of use and the absence of time frames and territorial restrictions are important advantages of digital currencies.

Is it possible to send paper money from a regular wallet to another city or country in a few minutes or even seconds? The answer is obvious, because the question can be considered rhetorical. But knowing what opportunities electronic money has, this process really takes place in a few moments.

Virtual, digital or electronic currency is the same money, only in a different guise, more advanced, user-friendly format. We wrote about electronic and paper money in this article.

They say that one more commandment was once written in the Bible: "Do not be afraid." But with the development of the churchs governing system, high-ranking clergymen removed it, since people who are subject to fear are much easier to manage. The point is that the ongoing debate about the viability, expediency or danger of digital currency entering our world is caused by fear.

This is the fear of recognizing the new, the very fear that often becomes a brake on development forward. It is not for nothing that they say that what you fear is your highest potential. Lets cast aside fears and believe that electronic money is an inevitable reality that is necessary for a modern person. The Internet is developing rapidly, and along with it new payment systems and electronic money are developing, which may not completely replace paper money, but will peacefully coexist with them.

Webmoney is one of the most popular and controversial payment systems used by millions of people in Russia and the CIS countries. Despite the disadvantages of Webmoney, it can be used to make money transfers and conduct business online without the need to work with cash. The legitimacy of transactions for each of the currencies is supported by special guarantor companies.

Additional services have been created to help customers, such as mobile banking, mass and periodic payments, loans, and so on. What are the pros and cons of Webmoney? Should you pay attention to them?

Pros of Webmoney

To get potential users interested, you should start with the advantages of Webmoney:

The prevalence of the payment system. People who make purchases on the global network, work in it or move in the circle of Internet users, actively use the WebMoney wallet. With the help of electronic money, you can make any purchase, pay for a service on the Internet, pay for hosting or buy a domain. Of course, all these actions are relevant if the transaction is made on the territory of Russia and the CIS.
High level of security. Periodically, there are messages on the network about the theft of funds from WebMoney wallets. But all these are isolated moments related to the owners inability to protect confidential information. Due to the high level of security, there has never been a massive hacking of the system and theft of user funds. Payment system specialists are constantly working to strengthen protection, thus guaranteeing the safety of each clients funds.
Multi-currency accounts. Having installed the program, the user gets control over several currencies at once - dollars, rubles, hryvnia, euros and others. At the same time, transactions can be made with the wallet that is most interesting at this moment. Many people believe that this feature more than overcomes the disadvantages of Webmoney, which will be discussed below.
Availability. Any beginner who wants to understand the system and learn how to use its capabilities can implement the idea without problems. There is enough information in the network that will allow you to step by step register in the system, get the necessary certificate, find out as much information about the business level as possible and explain a number of other points for yourself. Thanks to this, the likelihood of fraud on the part of cunning "scammers" is minimal. In addition, the mentioned system parameters cannot be faked. This makes the system open, balancing the pros and cons of Webmoney.
A wide range of ways to deposit / withdraw funds. Unlike other systems that have only recently appeared on the network, the WebMoney system offers more than a dozen different ways to deposit and withdraw money. All information on this issue can be found both on the official website and on many other resources.
Offline payments. The system is regularly improved, which makes the advantages of Webmoney more obvious to millions of users. Already today, with the help of electronic money, you can pay fines to the traffic police, pay for an apartment, order pizza at home, buy tickets for a flight of interest, and so on. The range of available services is growing every year.
24/7 access. You can get access to your wallet and money at any time of the day and regardless of the day of the week. Thanks to this, it is possible to operate with money even when bank branches are already closed.
Access to loans. A special program runs inside the system that allows you to issue loans from other users at low interest rates. The main requirement is a certain business level and experience in using the payment system.

Cons of Webmoney

But there is also a fly in the ointment. What are the disadvantages of Webmoney before you start using the system? There are several of them:

Lack of WebMoney rules. Despite the fact that the system has been working for a long time and has clearly defined rules, they are not really followed by anyone. In simple terms, the work is carried out according to the principle "as we consider it necessary, so it will be." This approach periodically creates problems for users.
Blocking wallets. Sometimes it seems that the administration of the payment system gets moral and physical satisfaction from blocking users wallets. As a rule, the justification is the claims against the victims, who are accused of conducting "dubious deals" or "attempted break-ins." As practice shows, in 70-80% of cases the system of law. But legal businessmen also fall under the "distribution", which leads to the halt of many business processes. The difficulty is also in the fact that not only the recipient is blocked, but also the sender.
Impossibility to work with HYIP projects. Many consider the pros and cons of Webmoney from the standpoint of the possibility of investing their own funds. And this is where difficulties arise. When trying to invest funds at interest in one of the HYIP projects, the user will be blocked by lightning.
Opaque blocking process. Equally difficult is the lack of transparency in blocking the wallet. The user does not receive any messages about the decision made by the system. At the same time, resetting the business layer to zero cannot be considered a warning, because this process occurs later.
Poor quality of technical support. The appearance of problems with the use of the system immediately highlights the main drawback - the inoperative work of the support service. There are several problems - delays in answering, rudeness of employees, lack of completeness of the answer, and so on. Respect for customers is zero.
No privacy. One of the main drawbacks, which overrides many of the advantages of Webmoney, is the lack of any privacy. For full-fledged work in the system, you will have to issue a personal certificate, the essence of which is to disclose full information. If this is not done, then many services will not be available to users. Subsequently, when using the service, there is a systematic pull of personal information literally "pieces".
Hacking risk. Despite the reliability of the system as a whole, the danger of being hacked by a hacker still remains. The program that has penetrated into the computer can "extract" the password for entering WebMoney and the file necessary for this. Therefore, you will have to try a little to protect your personal funds. At the same time, download programs only from official sites (including the browser itself).
Low level of popularity abroad. Outside the CIS countries, the payment system is not in demand. Therefore, you need to be prepared for the appearance of problems related to the withdrawal of funds.
Difficulties in using. To access funds from someone elses computer, you need to have a special wallet file with you and know several passwords. Otherwise, it will not work to carry out transactions with money.
The WebMoney system is a good option for use within the CIS. It is reliable, in high demand, and provides a lot of opportunities to its customers. On the other hand, there are a number of disadvantages that must be taken into account in the selection process. Here, everyone decides for himself what is more important for him - confidentiality, attentive attitude or support service.

Money is an important component of human civilization and our exchanger assigns a special role to the security of money. They have existed for thousands of years and are a universal means of payment, remuneration for work in the most convenient form and make a persons life comfortable. Money can buy everything you need. Therefore, people try to earn them as much as possible in order to satisfy their desires.

If means of payment are such a desirable object, then the problem of their protection is always relevant. Previously, in order to protect money from burglars, it was necessary to be good at weapons, to be strong or to look for secluded places to reliably hide the acquired from thieves. In the modern world, there is a need to protect electronic money, because they are becoming the main means of payment, displacing the paper equivalent of banknotes from wallets and everyday life of the inhabitants of the planet.

The new millennium has significantly expanded the concept of electronic means of payment. Now it is not only the usual bank cards, Internet banking, but also many electronic payment systems (EPS) used in the virtual world. Cryptocurrency has taken a special place and is a worthy competitor to EPS. An electronic wallet is a modern alternative to old wallets that does not need to be carried with you, but can be stored on a personal computer or even on a mobile phone and used for online financial transactions. Convenience and versatility, these are its main advantages that are appreciated by modern people.

Having let digital money into their lives, people are obliged to know the ways to save electronic money in online wallets. Compliance with simple rules will help you make online purchases, pay for various online services and services in a secure manner.

Electronic fraud

The problem of fraud became relevant at the early stage of the formation of the Internet. Virtual attackers use personal information from social networks, hack emails, steal passwords. The main goal of cybercriminals is to gain access to virtual wallets.

Developers invest a lot of money in ensuring the safety of electronic payments. However, the decisive role in the safety of his virtual wallet is played by the user himself. Continuous improvement of protection mechanisms cannot serve as a panacea if the owner of an electronic wallet does not follow basic safety rules.

Consider the rules to maximize the security of electronic payments. They are quite simple, but do not allow fraudsters to gain access to the e-wallet.

To protect virtual money, when entering a password on the EPS website or in an electronic wallet program, you must use a virtual keyboard. Fraudsters are armed with methods of intercepting signals from keyboards, allowing to find out the current password, so it is better to entrust this operation to a virtual analogue of a regular keyboard.
Entering the EPS personal account, you need to make sure that the address bar of the browser shows the required site. In order not to get to a fraudulent resource, you need to check for the presence of https symbols. The last letter S will inform about the presence of protection, which means that the user will be taken to the site of the electronic payment system.
In order for only the owner to have access to electronic money, the password should be as complex as possible. This will make it difficult to hack a virtual wallet when using special programs that can sort out many password options to enter the users wallet.
To keep electronic money safe, you need to install a new version of antivirus software as often as possible and carry out the necessary checks on your computer at the required frequency. Viruses hack wallets most often. To prevent such electronic fraud from depriving the user of virtual currency, antivirus software must be from a reliable manufacturer.
The password for an electronic wallet or bank card is never and under no circumstances disclosed to anyone, even if someone introduces himself as an employee of the bank or EPS. Real employees will never ask for such information, either by phone or by email. They can only be requested by an attacker.
Malicious software (viruses) give fraudsters access to users computers and allow them to download the necessary data. Try not to store passwords electronically on your work computer. For this, use a USB flash drive or other alternative storage media and safely hide them from strangers.

Protection codes are another effective method to protect money. Almost all EPSs offer customers such a service. Always use such protection of transfers, in this case no one will be able to intercept the transferred money. After all, only the sender and the recipient know the protection code.
Screaming headlines, for example, "1000% in a couple of days", "Great offer", suspicious promotions and contests, most often hide various fraudulent schemes. They are aimed at depriving gullible users of virtual savings. Such advertisements, as a rule, hide financial pyramids, "magic wallets", unscrupulous resources for online currency exchange.
After finishing work with the electronic payment system, it is best to log out of your account.
Binding a virtual wallet to an IP address will greatly enhance the security of user authentication. Many online payment systems provide such an opportunity and this should be used, because it will be possible to enter the EPS account only from the specified Internet access point.

Bitcoin cryptocurrency - also needs protection

The creation of decentralized cryptocurrencies (for example, Bitcoin) has given users of the virtual world many new opportunities. Basically, it is the confidentiality of payments made and high security of transfers.

However, moments are not excluded when a Bitcoin wallet can be vulnerable. The methods described below will allow you to protect electronic money in the Bitcoin system.

For everyday needs, use only a small amount that is located in your mobile wallet. Distribute the rest of the virtual coins on different deposits.
Use the ability to create a backup copy of your Bitcoin wallet. Store your wallet in a safe place. This will allow you to recover from a computer hardware breakdown or user error. It is necessary to create a copy of the entire wallet, since private keys are used when encrypting data.
Backups of wallets must be encrypted and it is best to place them in multiple deposits. This will save you from loss. If the copy is in one copy, it can be USB keys, CDs and other storage media.
If payments are not expected for a long time, an offline wallet will better protect money. It will freeze all Bitcoins and no one can steal them.
Encryption of an Internet wallet for Bitcoins will save the accumulated electronic money from the main types of electronic fraud with cryptocurrencies, the variety of which is growing every year.
Paying the necessary attention to the preservation of personal information and necessary passwords, following the above recommendations, you can always keep digital currencies, Bitcoins and other virtual cryptocurrencies safe and sound.

Almost every modern person uses electronic money to one degree or another. They are increasingly replacing the usual paper bills and are gradually becoming the main method of payment for goods and services. However, only relatively few people know how electronic money came to be. The origins of such a currency go back centuries.

How electronic currency was born

Humanity has long been looking for ways to simplify money transfers. Already in the thirteenth century, deposit transfers were practiced. But the buyer, who wanted to carry it out, had to personally meet with a bank representative and provide a verbal authorization to carry out such an operation. Lets make a reservation that the then financial institutions only remotely resembled modern lending institutions, but successfully coped with the main functions of banks. Later, paper checks appeared, on which the buyers will was confirmed by his written signature. They have become widespread since the seventeenth century.

The direct progenitor of electronic currency was the telegraphic transfer. With its help, the interested person could remotely, without unnecessary paperwork, transfer money from one account to another. This begs a quite natural question, where did electronic money appear? For the first time in history, a wire transfer was carried out in 1918 by the Federal Reserve Bank of America. Actually, the emergence of electronic money is associated with the use of wire transfer. Pretty soon, it was transformed into an electronic telegraph, which was actively used by individual entrepreneurs. People were able to perform the necessary operations - money transfers in any direction using a computer or a debit card. The spread of electronic transfers has opened up access to a new type of payment system for the general population.

Stages of development

Before electronic money appeared, the first magnetic credit cards (the middle of the last century) of the Visa type were issued. At that time, there were already credit cards made of metal. They were available only to wealthy customers who, during the purchase process, put the card into a special device and the letters embossed on it were transferred to a paper check. It was only in the sixties that the first plastic cards with a magnetic stripe appeared, where electronic money was stored. Another breakthrough dates back to 1975, when the Frenchman Roland Moreno created an electronic memory card.

The next stage in the development of electronic currency falls on 1990-2000. During this period, there is an active introduction of the so-called smart cards with an embedded miniature chip. They can be called one of the most common electronic payment tools. But it cannot be said that magnetic or smart cards have completely replaced the familiar and so popular paper money. They only gave users the opportunity to use their resources much more efficiently. With the advent of electronic money, ordinary paper banknotes do not disappear from circulation. Yes, their share in the total money supply has significantly decreased, but users continue to actively use paper bills to carry out mutual settlements. This is mainly due to the privacy that cash settlement provides. Fiduciary currencies are especially often used in third world countries, but technical progress in the banking sector is gradually spreading throughout the planet and the number of people using electronic systems and currencies for mutual settlements is steadily growing.

The third, the last stage of development at the moment, began in 2000. A new milestone in the development of electronic payments was the emergence of the so-called network money. They enable users to make payments in real time. This service became available thanks to software that was specially developed for making online payments.

What contributed to the development of electronic money

Electronic money owes its appearance to the development of the Internet. As the popularity of the world wide web grew, new markets opened up. Online stores and platforms of various types for the sale of goods and services have become widespread. In them it was possible to make a purchase online. But the question of payment immediately arose. After all, if the store was located in another country, then how to quickly and safely pay for the purchased goods? And the solution came in the form of electronic money.

For the first time their release was established by the doctor of sciences from California David Chaum. In 1994, he founded DigiCash, within which he began issuing an electronic currency called eCash. He also developed a payment system of the same name, which was adopted by some banks. The first year of the companys activity brought it a thousand users and cooperation with 90 retail outlets. Today these numbers seem ridiculous, but then they meant a good result. However, DigiCash never managed to gain the confidence of the mass consumer and the company ultimately declared itself bankrupt. However, David Chaum acquired the status of the father of electronic currency.

Subsequent attempts became more successful and in America, the state where electronic money first appeared, world-famous services began to operate - MoneyBookers, PayPal and others. The post-Soviet states, where such payment systems as Yandex.Money and WebMoney are widespread, were no exception. David Chaums idea has served as the basis for the creation of dozens of more successful projects. And after some fifteen years, e-commerce has become commonplace, which has become a worthy competitor to even the most reputable banking institutions.

At the present stage, electronic money is widely used in almost all spheres of life. With their help, you can pay not only for the necessary purchases in the online store. Payment systems make it possible to pay off debts for utilities, pay fines and state fees without leaving home. Thanks to electronic payments, people can quickly send funds to their family and friends both within one state and abroad. The main advantages of electronic money over traditional paper notes are:

The convenience of use.
Efficiency of transactions.
High level of payment security.
In the future, they will finally displace traditional fiduciary banknotes from the financial Olympus.

Many have heard about the emergence of virtual money. And some have already learned how to use them: extract, earn, exchange, pay and accept payments. Any new phenomenon always makes people want to debate. What is more firmly established in our life: electronic or paper money.

Or will they get along with each other? Skeptics believe that digital currency is not viable, and government officials generally call it a monetary surrogate. And those who already have such valuable virtual coins in their online wallets only grin at such conservative manifestations and use them successfully, no matter what.

With some similarities, there are significant differences

To get an objective answer to the question of which money has the right to live and which does not, we will try to figure out how electronic money differs from paper money.

What is common between fiduciary banknotes and virtual money? There are many similarities:

Application as a means of payment for a purchase or service.
The opportunity to earn.
Exchange functions between users.
Conversion to another currency.
Accumulation and investment.
To understand which is better, electronic or paper money, you should consider their differences. For a specific example, lets take the digital currency Bitcoin, as the most popular, it is also the discoverer of the era of virtual money.

The availability of cryptocurrency for everyone, regardless of the level of knowledge of computer technology.
Digital currency, in particular, Bitcoins, is not controlled by anyone "from above", it does not have a controlling body.
Saving a database of all settlement transactions, which is open to all users.
The ability to choose options for storing Bitcoins, depending on the purpose of their use.
Full user privacy.
The ability to independently produce new Bitcoins through mining.
The impossibility of counterfeiting, counterfeiters will not be able to realize their abilities in the field of virtual money.
Bitcoin cryptocurrency has strong protection based on the development of a security program against "hacking".

Try on a new phenomenon

By delving deeper into the essence of electronic or paper money, you can discover completely new opportunities. In our time, a time of high technologies, one cannot "mark time", stay away from the events, discoveries, innovations, radical changes in various spheres of life. Thus, you can skip the most interesting, useful, so that our life takes on a new quality. Dont we want to live a better life, have enough money to travel, buy new cars, dress decently, improve our life. It is clear that for this one should not "sit back" and envy: "it is good for them, they have everything." You need to go forward, try, study, experiment, no matter how trite it may sound, and not indulge in idle curiosity.

A new type of money has appeared, why not try this innovation on yourself? How electronic money differs from paper money, we figured it out. Lets take a closer look at some of the differences to understand how digital money is acceptable to us?

Available experiment

For example, free access to cryptocurrency, isnt that a reason to pay attention to it and let it into your life? After all, there is nothing easier than trying, for this you can easily get registration on the site and replenish in your person (in encrypted form) the ranks of the main Bitcoin register. On computers or other suitable devices with an Internet connection, you can quickly, without unnecessary hassle, register a Bitcoin wallet. From the minute you have an electronic means of storing cryptocurrency, consider yourself a user of money of a new formation.

And now, through your own research, conducting a kind of experiment, you can find out yourself which is better, electronic or paper money.

The bastion of financial freedom

You dont need to be a professional analyst, financier or politician to understand that the traditional monetary system is in the hands of the state. Such a financial policy is based on the decisions of the supreme power, and by no means on the interests of citizens. Using fiduciary money, we are completely dependent on the exchange rate of the national currency, on the state of the economy in the country. People have fixed salaries, pensions, social benefits, the amount of which is determined by the Ministry of Finance, led by the Cabinet of Ministers. In other words, there can be no question of any financial freedom in dealing with paper money. And we again return to the choice: electronic or paper money.

It is unlikely that a conservative can be convinced of the advantages of digital currency. But among us there are many people who are not alien to the state of inner freedom, and we strive for freedom in all spheres of life. This is how the Bitcoin system is built, it is free from central control. The governing body replaces the blockchain system representing a distributed database.

We can say that this unique program does not require control from above. The block chain forms peer-to-peer nodes, it accumulates and constantly adds all information about all calculations made in Bitcoins. Moreover, all this happens in complete confidentiality. And, if in what way electronic money differs from paper money, it is this advantage. No one will ask, reproach, make a claim or block your account. Because no one knows the username.

It cannot be argued that electronic money can completely replace paper banknotes. This will depend on the development of society, the formation of attitudes towards different types of currencies, and on the policies of states. Time will show that electronic or paper money is better. Perhaps at the moment the answer will be correct - this is the possibility of free choice of the user himself. But the very fact of the appearance of an alternative currency predicts great changes in the financial world. Analysts forecasts speak in favor of virtual money.

Bitcoin has remained in the spotlight with financiers around the world since it entered virtual circulation in 2009. Is Bitcoin really the currency of the future?

Lets try to understand this in more detail. Throughout the period of its existence, it has experienced ups and downs, and the ups were colossal: 1 Bitcoin had the equivalent of a few cents to 1000 dollars.

At the moment (05/01/2016), the rate of 1 Bitcoin is $ 452.56. What will happen to Bitcoin, what is its future fate? There is no definite answer, but if you listen to the opinion of experts and take a close look at the behavior of potential investors, it can be allowed to further strengthen.

Who is behind Bitcoin?

Many companies support Bitcoin. For example, the notorious Bitnet Technologies plans to launch a platform for integrating this currency into virtual stores. Confident in the viability of Bitcoin for the future, this Irish investment company raised $ 14.5 million in venture capital.

Proof that Bitcoin may be in an even more advantageous position in the future is the result of the use of this cryptocurrency by the American company Overstock. Its leader, Patrick Byrne, has integrated Bitcoin into his firms payment system. At first glance, this was a risky move. But very soon, along with the ability to pay with Bitcoins, thousands of new customers were attracted.

An experienced retailer is confident in the brightest forecasts for cryptocurrency. Byrne assumes that within 10 years this digital currency will maintain and increase its popularity not only in the virtual world. It should be expected that Bitcoin will go beyond the framework allotted to it and will play an important role in the global financial segment, becoming the main monetary unit on a global scale.

Japan as always sane

Surprisingly, it is true that Japan also agrees to accept Bitcoin as the currency of the future. Just think, despite the case of the bankruptcy of the Japanese exchange, which lost 800 thousand Bitcoins, the Japanese authorities do not remove from the accounts the real use of virtual money. The Japanese government has decided to study the cryptocurrency market more deeply and identify a more specific interaction with digital money. If the law on the legalization of Bitcoin is approved in 2016, Japan will open an account in the list of countries where the digital currency will be equal in status to other types of money used in this state: the Japanese yen and the American dollar.

Hard fate

How many attacks digital currency has come under! From all sides they tried to discredit it, calling it a financial pyramid, a senseless experiment. When asked what would happen to Bitcoin, they rushed to answer that it is absolutely hopeless. But everything new is “born in pain,” something similar happened with the advent of the Internet. At that time, few believed that it was real to create a world-wide global systematized information system.

Despite the sown negativity, Bitcoin has a future, and doubting this is as senseless as it was in vain to disagree with the creation of the World Wide Web. At the very beginning of its inception, there were also failures, falls and miscalculations. Like many complex information technologies, Bitcoin is now going through a difficult period, which it is too early to call its formation. But to deny that he has a future would be a clear mistake.

The indisputable facts of Bitcoins viability

It is worth starting with the number of users and the transactions made. Their growth does not stop. You cannot name a single period so that it stops or decreases. In addition, another point is the increase in the number of companies that introduce this cryptocurrency into the list of payment systems.

The owners of virtual coins have additional opportunities to use them to pay for the purchase of goods or pay for services, and they are expanding every day. How, after all this, it can be argued that Bitcoin is not the currency of the future. Well-known companies such as: Purse, ChangeTip and ZapChain accept Bitcoins as payment for goods, and ChangeTip grants the right to carry out micro-transactions.

The appearance in everyday use of a huge number of mobile devices equipped with Internet communications allows more and more people to get acquainted with the cryptocurrency. It is most attractive to busy people who value every minute. As you know, making mobile payments with Bitcoins is very fast, almost instantaneous. This will serve to further popularize the digital currency.

It is impossible to tell right away what exactly will happen to Bitcoin in the near and long term. But the obvious tendency towards its development and strengthening cannot be denied.

Bitcoin "uncut"

If you want to convince someone of something, you should not lie. It is better to tell the truth without embellishment, to admit all the shortcomings, while focusing on the positive aspects. Yes, Bitcoin has undergone high volatility, there have been price crashes, and they may be in the future; yes, the security system is not yet completely reliable; yes, there are still not enough opportunities to use it. But for all its shortcomings, it was and remains a living virtual currency.

If forecast for the near future, this digital currency could be the subject of profitable trades in the Forex market.

In the more distant future, Bitcoin can be used for investment. But since there is no real basis for certainty, but the expected change in the course is very tempting, it is still worth investing in its development. But just be prudent with the amount of deposits. Tips from wise investors: Invest so much that you dont regret losing.

Summing up the discussion about the fate of Bitcoin, we can say that this cryptocurrency is worthy of the attention of not only a private user, but also a potential investor. All the advantages and trends for further strengthening are obvious. If nothing else is taken into account, then Bitcoin has a prospect, and it is quite comforting. But there is one problem - this is the relationship with government agencies.

She is far from being favored everywhere as in Japan. After all, Bitcoin is the exact opposite of national currencies. The worst thing that can happen is the establishment of control over this monetary system. If this happens, it is possible that Bitcoins will not disappear, but it will be completely “wrong” Bitcoins

Newbies who take their first steps in working with cryptocurrency do not understand several things - what are the features of transactions, how to create a Bitcoin address, and what is needed to find out. Below we will deal with these and other issues in more detail.

Subtleties of translation

Transactions between wallets within the network are carried out with a digital signature. Any operation is publicly available, which allows each participant to study information about the sender and addressee of the public block chain, as well as check the history of transactions for the entire time period (from the beginning of the appearance of the cryptocurrency to the transaction).

There are users who only use cryptocurrency for investment. But the goal of Satoshi Nakamoto was not to create a tool for investment, but to provide society with electronic money that would replace cash, simplify transaction procedures and make them more profitable and simple.

To send coins, you need two components - the Bitcoin wallet address and a personal (private) key. Many people compare a Bitcoin wallet address to a bank account. But such a comparison is not correct. Before registering a wallet and finding out the Bitcoin address, you do not need to fill out a large number of papers and go to the bank. Anyone can use money and make transfers - even a minor. Typically, a Bitcoin wallet address is generated randomly and is a group of numbers and letters. In this case, the second element of the transaction (the private key) must be closed from public access.

Many do not know where to get a Bitcoin address. Everything is simple here - just install a special wallet program on your PC or use a special online service. In both the first and second cases, getting a Bitcoin address is easy. How to do it? It is enough to click on the "Get address" button. The alphanumeric code that appears can be copied and used as intended.

The Bitcoin wallet address is often compared to a safe deposit box. On the one hand, everyone has the right to look into it to study the contents. On the other hand, only a user with a personal (private) key has the right to get the values that are inside.

We figured out where to get the Bitcoin address. The transaction itself is performed according to the following algorithm:

- A network participant decides to send a certain number of coins to another person.

- The sender uses the private key to sign the transaction request.

- The application includes the following information - the Bitcoin wallet address from which the funds are received, the recipients address, as well as the amount of funds sent.

- The sending party sends a request to the network, which is picked up by the miners (miners) and added to a new block.

- The recipient receives funds to the wallet.

Specifications

The solution to the question of how to create a Bitcoin address is only the tip of the "iceberg" for a cryptocurrency user. Here it is necessary to accurately represent, especially a number of points - how to get the Bitcoin address, what it is, how many numbers and letters it consists of.

Bitcoin address - the identifier of the network user, which is required for the transaction. The peculiarity of cryptocurrency is that you can create multiple Bitcoin addresses. How to do it? There are two options here - manually when making each subsequent transaction, or automatically. In the latter case, the system (wallet) independently creates a new address for the transaction. Many people ask how to find out all the Bitcoin addresses that are used in transactions. Its easy to do - just go to the special section of the wallet called your receiving addresses.

A Bitcoin wallet is a node that contains two keys (public and secret). The first is available to all users of the crypto network, and the second is the owners personal property, which it is desirable to protect from prying eyes. Having learned where to get a Bitcoin address, you can generate it in the amount that you need. Moreover, experts do not recommend making transactions using only one Bitcoin wallet address. This approach is considered unsafe and increases the risk of information interception.

Structure and recommendations

When considering the structure of a Bitcoin address, the following points should be highlighted:

Technically, this code is generated after transforming the public key. Upon completion of the encoding, a string is formed with a length of 33-34 characters (may be less).
Today, a Bitcoin address can be encrypted into a so-called QR code. How do you recognize him? - It is enough to use a mobile device with an installed application that can recognize such ciphers.
Each person can have an infinite number of addresses that are stored in the wallet and are used to conduct transactions.
The size of each address is minimal and is 500 bytes. This means that 1000 addresses will only take up 500 KB, which is a minuscule amount for modern machines.
When entering the address, maximum accuracy is required. One mistake is enough for the coins to be sent to another user or the transaction to be canceled completely. When entering, it is worth considering the case, which is of key importance when making a transfer. If the entered account does not exist, the transaction will be processed. If there are errors in the address, then the operation will simply fail.
You can get a Bitcoin address without connecting to the network. How to do it? With the help of special software that does not require a WAN connection. At the same time, there is a risk that the system will form a previously created address, but its probability is 1 to almost 4.3 billion.
The creation of an address takes a minimum of time. To do this, you need to go to the Bitcoin client, select the section for creating an address and write down the alphanumeric code. If desired, it is allowed to use utilities that can create original addresses for making exchange transactions and ensuring maximum confidentiality. An example is the Vanitygen program. The purpose of the software is in the selection of addresses and keys suitable for the transaction.
The address is not a wallet or account in the crypto network. It is only needed to complete a transaction.
Private keys that are created during the formation of the address are stored in a special file - wallet.dat. To ensure safety, this file must be protected from prying eyes and backed up (to protect it in case of loss).
The address is generated by iterating over a group of random numbers and performing complex mathematical operations. Within one minute, the system is able to generate thousands of addresses, and at the same time it does not need a connection to the global network.
When conducting transactions (transferring Bitcoins from address to address), all information is recorded. It contains the hash of the previous operation, which was signed by the sending party, as well as the recipients code. After checking the conditions of the transaction, the funds are transferred.

The danger of losing your Bitcoin wallet

When using Bitcoins, it is worth considering the risk of losing funds, which is possible in the following cases:

- If you lose your wallet due to hard drive failure.

- When creating a new address, receiving cryptocurrency for it and then restoring the old version of the wallet.

- In a situation where money is sent to a non-existent address.

The Bitcoin cryptocurrency has opened up new prospects for users - the possibility of making profitable investments, the convenience of conducting transactions, the chance of earning money through mining and making hidden transfers without commissions. But to carry out transactions, it is worth having a Bitcoin address. What is it? How is the Bitcoin address formed, and what does it depend on? Lets figure it out in more detail.

What is the essence?

Bitcoin address is a classic identifier containing 34 characters (numbers and letters). In the latest versions, the Bitcoin address begins with one of the numbers - one or three. A person who receives a Bitcoin address can use it to solve a number of tasks - mining, making transactions, making money on faucets, paying for services or goods. Obtaining a code from numbers and letters is available to the wallet owner and is available free of charge.

Many are wondering how to find out their Bitcoin address. Everything is simple here. It is enough to install the software on your computer or go to the wallet and find the button for obtaining the Bitcoin address. After that, a group of numbers and letters is displayed, which is an individual identifier for a specific user.

What is a Bitcoin address and what does it look like? As already mentioned, this is a group of letters and numbers, the number of which is about 34. Alternatively - 1BQ8qza7fj9snSCyJQC7ZcN46biBtkt4ee.

Knowing the recipients Bitcoin address, you can send the required amount of coins and not worry about the security of the transaction. This procedure can be compared to simply sending a letter to another persons email account. As with e-mail, the number of Bitcoin addresses can be unlimited. Moreover, it is encouraged and considered one of the ways to improve the security of transactions on the network.

To maintain confidentiality of translations, it is recommended to use a unique address each time Thanks to the capabilities of modern systems and software, a new code is generated every time a new translation is made. If you wish, you can also get a Bitcoin address upon manual request.

Situations are possible when a user of a cryptocurrency keeps funds on special online services. In such cases, sites can generate Bitcoin addresses themselves for transfers. Those addresses that were formed earlier are not canceled and may well be used in the future to conduct transactions.

Application features

In the question of how to find out your Bitcoin address, and what its features are, we figured it out. How to use it? When making any transaction, special attention should be paid to entering the alphanumeric code. If possible, then it is worth copying the code using the PC buffer, and then transferring it to the desired line. There is a risk of error and incorrect transaction when copying manually. As a result, the funds are transferred to an outside recipient or the transaction is rejected altogether.

If you decide to get a Bitcoin address, "surprises" are inevitable. Often the code has fewer characters - not 33, but, for example, 32. This state of affairs is normal. This means that the customers account number starts from zero. As a result, the address itself is shortened.

The technical side of the issue

What is a Bitcoin address from a technical point of view? Above, we figured out that the alphanumeric code is the account of the user of the crypto network. Technically, this is the hash from the ECDSA public key. The bitness of such a hash is 160. Applying a number of mathematical techniques, it is possible to "sign" information using a personal (secret) key. In this case, anyone who has such a key can verify the authenticity of the signature. More information about the Bitcoin address and what it is can be found on Wikipedia. For an ordinary user, these features are enough.

For each pair of keys that is generated in the process of using a cryptocurrency, there is a corresponding address used to receive coins. All public and private keys are contained in one user file - wallet.dat. To protect yourself from trouble, it is recommended not only to securely store the file on your PC, but also to make backups.

The process of transaction Bitcoins to another address is successful if the receiving party has a suitable secret key in the wallet. And here it is important to clearly understand what a Bitcoin address is, and what are the risks for the user. An example can be given. If the user created a new address, and a certain amount of cryptocurrency came to him, and then restored the wallet file from the previous "save" (before generating a new address), then the funds listed will disappear. A similar situation awaits if the wallet is completely lost.

The advantage of the cryptocurrency network is that there are no restrictions on the creation of Bitcoin wallets. You can generate as many of them as needed. There is no such thing as a "main address". Above, it was discussed how to find out your Bitcoin address - for this, just go to a special section. But this will not be the main one, but only one of the existing keys.

For the convenience of the user, the application independently changes the keys in the wallet. This is done in order to increase the privacy of transactions in the system and complicate their calculation. Its easy to find out all the numbers - they are in a special section (in the official versions of wallets, this category is called your receiving addresses). There are no problems with storing tens or even hundreds of addresses, because the size of one key is 0.5 kilobytes. It is enough to allocate some space on your hard drive, and the storage issue is resolved.

The nuances of the structure of a bitcoin address

In the structure of each address there is a verification code that does not allow making a transaction to an incorrectly entered address. For example, if the user made a mistake while entering the code and did not enter several digits (letters) of the recipients address, the transfer will not occur. On the other hand, if the code is entered correctly, but no one really owns such an address, then the transaction will be completed. It will be impossible to return funds in such a situation.

The public key structure can contain all numbers and letters. But there are exceptions. Among them are small L (l), large i (I), as well as O and 0. As already mentioned, almost all modern addresses start from one, but in the future this may change. For example, testnet codes start with the letters n and m. As for the number of characters, the acceptable range here is quite wide - from 25 to 34 letters and numbers. In the test version, the length is almost identical - from 26 to 34 characters.

Many do not know, but Bitcoins are really sent not to a wallet, but to an IP address. In addition, two different people could theoretically have an identical Bitcoin address. Such situations are called collisions. Here, both have the right to spend the funds available on the wallet. At the same time, neither the first nor the second user can squander all the money. It is almost impossible to select identical addresses on purpose; it would take a lot of time - more than forming a block.

Knowing about the Bitcoin address, what it is, and how to use it, you can simplify the work in the crypto network and eliminate problems with transactions.