When Bitcoin started in 2009, not many people understood what it was all about. This is perhaps one of the reasons why it has had an up and down journey in the market. To start with, very few people understand public ledgers and Bitcoin mining. Only experts in cryptocurrencies are able to offer sensible explanations about the same. This is the same confusion that has led to news outlets confusing cryptocurrencies with other forms of E-Money used around the world. It is important to note that cryptocurrencies like Bitcoin and E-Money rely on completely different platforms to operate. Below is a simple breakdown of the differences between these two systems.
Unlike Cryptocurrencies, E-money is a storage for conventional money, only that it is electronic. This currency is backed by a Fiat currency and it is normally regulated by one central authority. People that want to transact using e-money have to create accounts with services such as EcoPayz. So, in short, while the money will be used online, it is linked to a conventional currency. In addition, if you have a card, it is possible to link to the account and make conventional card-based transactions with the money.
— PSI-Pay (@PSIPayLtd) May 24, 2016
Cryptocurrencies and in this case, Bitcoin, rely on exchanges from one person to another. Unlike the e-money, there is no central authority which oversees Bitcoin transactions. Instead, the transactions are verified by a group of laptops. Also, the value of Bitcoin fluctuates depending on public trust in the currency. It is also important to note that Bitcoin is set up such that the maximum number of Bitcoin there can be is 21 Million. This is to protect it from the effects of inflation. Cryptocurrencies, therefore, cannot be printed into Fiat currency like e-money.
How to get Bitcoin and E-money
Another difference that exists between Cryptocurrencies and e-money is access. To access Bitcoin, you need to have an E-wallet. You can then purchase the currency on sites such as CoinBase. Bitcoin is transacted on a platform which resembles Forex. The security of the wallet is ensured through encryption. On the other hand, e-Money wallets are loaded through bank cards and is regulated by bodies such as the FCA.
If you want secure, instant and reliable payments worldwide, ecoPayz is the perfect solution for you. The service provides a merchant account from which you can send and receive money from around the globe. It is a service from PSI Pay Limited, an FCA regulated E-money platform.