At its core, bitcoin is a smart currency designed by very forward-thinking engineers. It eliminates the need for banks, gets rid of credit card fees, currency exchange fees, money transfer fees, and reduces the need for lawyers in transitions... all good things.

----Peter Diamandis

Virtual currencies were developed because of trust issues with financial institutions and digital transactions. Though they aren't even considered to be "money" by everyone, virtual currencies are independent of traditional banks and could eventually pose competition for them.

First, there are three terms that are sometimes used interchangeably that we need to sort out: virtual currency, digital currency, and cryptocurrency.

Virtual currency was defined in 2012 by the European Central Bank as "a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community." Last year, the US Department of Treasury said that digital currency operates like traditional currency, but does not have all the same attributes — as in, it doesn't have legal tender.

Digital currency, however, is a form of virtual currency that is electronically created and stored. Some types of digital currencies are cryptocurrencies, but not all of them are.

http://www.bis.org/cpmi/publ/d137.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414040/digital_currencies_response_to_call_for_information_final_changes.pdf

http://www.techrepublic.com/article/10-things-you-should-know-about-bitcoin-and-digital-currencies/

At its core, bitcoin is a smart currency designed by very forward-thinking engineers. It eliminates the need for banks, gets rid of credit card fees, currency exchange fees, money transfer fees, and reduces the need for lawyers in transitions... all good things.

----Peter Diamandis

Virtual currencies were developed because of trust issues with financial institutions and digital transactions. Though they aren't even considered to be "money" by everyone, virtual currencies are independent of traditional banks and could eventually pose competition for them.

First, there are three terms that are sometimes used interchangeably that we need to sort out: virtual currency, digital currency, and cryptocurrency.

Virtual currency was defined in 2012 by the European Central Bank as "a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community." Last year, the US Department of Treasury said that digital currency operates like traditional currency, but does not have all the same attributes — as in, it doesn't have legal tender.

Digital currency, however, is a form of virtual currency that is electronically created and stored. Some types of digital currencies are cryptocurrencies, but not all of them are.

http://www.bis.org/cpmi/publ/d137.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414040/digital_currencies_response_to_call_for_information_final_changes.pdf

http://www.techrepublic.com/article/10-things-you-should-know-about-bitcoin-and-digital-currencies/

Dear Colleagues,

Good Day,

"Virtual currencies, used to buy digital goods inside online games, have become an integral part of the Internet landscape."

                                                                                  -----   Ryan Holmes

Dear @Mahamad, I do follow Bit Coin Magazine at Twitter. It is good resource.

https://twitter.com/BitcoinMagazine

https://bitcoinmagazine.com/

I have not well studied pros and cons of digital currency, I feel that its dangers might be large.

http://themarketmogul.com/the-dangers-of-digital-currencies/

I am fully agree with Professor Emeritus Tatsuo Tabata that the dangers related to adaptation of Digital Currency may be very fatal to economics.

A few month back, around 19000 INR where wrongly withdrawn through online shopping from one of my friend's bank account. Also, such type of news were very common a few month back. So, I think a very strong cyber security is required to handle such type of incidence.

However, use of the Digital Currency can make banking as well as transaction processes very easy. So, we should think of using this digital currency.

At its basic, is it not true that "digital currency" is just another form of unregulated barter - but over the internet instead of baskets of wheat or bars of gold? To its credit, digital currency does eliminate most of the intermediary transaction costs of the middle man.

Indifferent.

Many of these currencies have not yet seen widespread usage, and may not be easily used or exchanged. Banks generally do not accept or offer services for them.

There are concerns that cryptocurrencies are extremely risky due to their very high volatility and potential for pump and dump schemes.

Regulators in several countries have warned against their use and some have taken concrete regulatory measures to dissuade users.

There may be significant legal issues around security interests in bitcoin under the Uniform Commercial Code.

The non-cryptocurrencies are all centralized. As such, they may be shut down or seized by a government at any time.

The more anonymous a currency is, the more attractive it is to criminals, regardless of the intentions of its creators.

Anyone with the right skills can issue a digital currency. It can be compared to issuing bonds with zero interest rate, no real security behind them and thus no real obligation for the issuer to pay back the amount. This means that the issuer who succeeds in selling his currency to other users, can earn a great deal of actual money at the expense of his users.

Forbes writer Tim Worstall has written that the value of bitcoin is largely derived from speculative trading.

Yes,

1. Digital currency transaction fees are usually a lot cheaper compared to things like credit cards or Paypal, and sometimes there is no transaction fee at all.

2.digital currency exists on the internet, which itself is global, borders mean nothing to it. Usually sending money abroad carries substantial fees, in addition to currency conversion costs.

3. Many bank accounts today charge their users a monthly fee. Many of them also catch you out with hidden fees and charges for using your account. Anybody can create a free bitcoin wallet, to give one example, and nobody can ever charge you any fees.

Digital currency or digital money is an Internet-based medium of exchange distinct from physical (such as banknotes and coins) that exhibits properties similar to physical currencies, but allows for instantaneous transactions and borderless transfer-of-ownership.

This is a non stop process, but I do not like it. 

Digital Currencies that are created electronically are easily held and managed especially in online purchasing and cash transaction. However, the traditional currency cannot be fully replaced by this online way of paying. 

Dear Mahamad,

It would take longer time to work on

Develop and developing nations.

Reasons being

1. The IT illiteracy rate

2. It does not work on pigeon hole stores

3. It does not help the needy and handicapped beggars.

For smart nations,

1. Intelligent IT personnel manipulation

2. Cyber crime loopholes

3. Not practical to use it on the lower income groups who need to purchase goods at provisions stores more than at mega malls

Best regards - Mariam

Dear Colleagues,

Good Day,

"Credit or debit cards, for starters, are nothing short of shoppers' Novocain. Even in the age of digital purchases and virtual money, we still attach a special value to dirty paper with pictures of presidents on it. Handing some of that to a cashier simply hurts more than handing over a little sliver of plastic."

                                                                        ----  Jeffrey Kluger

With time , we will venture into that , utilization  of digital currency  , Unstoppable Advancement .

Dear Colleagues,

Good Day,

"Why Digital Currency?

You may have heard that a new type of money has been invented. Perhaps you have heard of Bitcoin, or one of its many alternatives known as ‘alt coins’. But what is it really all about? Why should you trade in your national currency for this new digital money? What are the benefits for you personally or for society? If you are new to all of this and you are asking yourself that kind of question, then this article is for you…

What are the Benefits of Digital Currency?

• It Saves You Money!!!
• Its Easy & Respects Your Privacy
• Power to the People, Not The Banks!
• Its an Investment!".....

Please, see the link for more information...

http://cryptorials.io/why-digital-currency/

Digital currencies can be centralized where the money supply is controlled by one point of control or decentralized where several sources can supply the money. Issues have been raised over the high volatility of crypto currencies and their potential use for pump and dump schemes which make them very risky. Regulators in some nations have issued warnings concerning digital currency transactions in an attempt to dissuade potential users. Digital currencies have also come under fire for aiding criminal activities due to the perceived anonymity of the systems.

No idea, reading the post shared by experts

Dear Colleagues, Good Day,

"Cryptocurrency currencies take the concept of money, and they take it native into computers, where everything is settled with computers and doesn't require external institutions or trusted third parties to validate things."

---- Naval Ravikant

what a suggestion!!!!!

It is the frst study of its kind to holistcally examine the burgeoning global cryptocurrency industry and its key consttuents, which include exchanges, wallets, payments and mining. The fndings are both striking and thought-provoking. First, the user adopton of various cryptocurrencies has really taken of, with billions in market cap and millions of wallets estmated to have been ‘actve’ in 2016. Second, the cryptocurrency industry is both globalised and localised, with borderless exchange operatons, as well as geographically clustered mining actvites. Third, the industry is becoming more fuid, as the lines between exchanges and wallets are increasingly ‘blurred’ and a multtude of cryptocurrencies, not just bitcoin, are now supported by a growing ecosystem, fulflling an array of functons. Fourth, issues of security and regulatory compliance are likely to remain prevalent for years to come...

https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alternative-finance/downloads/2017-global-cryptocurrency-benchmarking-study.pdf

DIGITAL CURRENCY needs to be viewed also with cyber security. As DIGITAL CURRENCY are vulnerable to hacks and cyber attacks.

What technology digital currency (or money) is based on?

Blockchain is a system that allows a group of connected computers to maintain a single updated and secure ledger. The blockchain system is designed in such a way that no trust is needed, security and reliability are obtained via special mathematical functions and code.

Bitcoin is based on blockchain technology. It gives us, for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate. One Bitcoin is a single unit of the Bitcoin (BTC) digital currency, just like a Dollar it has no value by itself, it has value only because we agree to trade goods and services in exchange for a higher amount of the currency under our control and we believe others will do the same.

For more information, please refer to: How Does the Blockchain Work?

https://medium.com/@micheledaliessi/how-does-the-blockchain-work-98c8cd01d2ae

I think I have a different view altogether because I understand the digital currency/coins (we have more than 700 types + with bitcoins being the most prominent), the blockchain network and the likes.

Firstly, let me start with the positive side (using bitcoin as an example):

1. It is decentralized meaning that one can buy, sell with it and importantly transact with it others all over the world without barriers. This is why digital coin has lasted because of the embargo placed on some local currencies.

2. You can exchange it with your local currency even from the comfort of your home without necessary going to cue up in the bank as obtainable in some places.

3. The charges for sending bitcoin (money) is less and the receiver gets it instantly.

Now to the negative side:

1. It will be impossible to regulate the flow of bitcoins. Meaning you may not determine the true source.

2. Is heaven for money launderers, criminals, terrorists. One can cold storage millions of dollar in a safe computer without one knowing.

3. It is not safe if you do not understand how to handle your digital currency. The criminals online is more than what you find physically. Computer programs, robots that can steal your private keys.

With the few point above, you will agree with me that it may not be the safest if you care about money launderers, criminals, terrorists and so on.

Digital currencies have a long way to go.

Different use cases of BlockChain are already a reality

Check out our research paper about use of next generation BlockChain like Tangle.

https://www.researchgate.net/publication/321474306_Zenith_Certifier_A_Framework_to_Authenticate_Academic_Verifications_Using_Tangle

I agree with Dr. Mahmoud Omid

An excellent article about blockchain!

Blockchain: A technical primer!

A blockchain is a digital and distributed ledger of transactions, recorded and replicated in real time across a network of computers or nodes. Every transaction must be cryptographically validated via a consensus mechanism executed by the nodes before being permanently added as a new “block” at the end of the “chain.” There is no need for a central authority to approve the transaction, which is why blockchain is sometimes referred to as a peer-to-peer trustless mechanism...

It could take a few years before we see wide commercialization of blockchain platforms and applications. While many challenges may remain, from lack of regulatory and legal frameworks to rapid technology changes, from talent gaps to consortium building, it is important to not underestimate the impact of blockchain. Every transaction platform and fabric that we know today will likely be either improved or replaced by a blockchain-based solution. Engage now to build your future on blockchain or wait for others to create the future you will likely have to join.

https://www2.deloitte.com/insights/us/en/topics/emerging-technologies/blockchain-technical-primer.html

Dear Colleagues, Good Day,

"A Brief History of Digital Currency

One thing that comes to mind when someone mentions digital currency is Bitcoin. For most people across the world, both young and old Bitcoin is the only digital currency they have known of heard of (and maybe the altcoins that followed bitcoin). But did bitcoin appear out of the blue? Was bitcoin a novel idea of a mysterious person calling himself Satoshi Nakamoto?

The answer is no on all counts. However, bitcoin is the iteration of an old idea with new technology. The technology, blockchain as we know it is however unique enough to change the way the whole fintech industry works. There were many who came before Satoshi Nakamoto with the intention of creating digital currency that can power alternative economy, but failed due to technical, regulatory and ideological reasons.

Some of these so called digital currencies include

a. E-gold – 1996

The concept of digital currency started while the internet was still catching up with most parts of the world. E-gold is one such example. Started in 1996 by an oncologist named Douglas Jackson, a lawyer managed to have over 5 million user accounts by 2009. E-gold grew so big, that even merchants had started accepting it. The digital currency was backed by gold and it turned out to be a very successful venture until it entered the favorites list of criminals and hackers. Continued attacks on the platform by cybercriminals and use of e-gold as favored currency by extortionists and money launderers led to its downfall.

b. WebMoney – 1998

WebMoney was started in 1998. Except for the decentralization part WebMoney is a form of digital currency for all practical purposes. The Moscow based company offers a wide range of financial services including peer to peer payment solutions, merchant services, online billing and payments and even internet based trading platforms. WebMoney became the next best thing after e-gold and attracted many users, both good and bad from e-gold once it was shutdown. However, WebMoney made changes to its services soon after that to prevent its usage for illegal activities. WebMoney currently supports a number of international currencies including GBP, USD, Russian Rubles and even bitcoin .

c. Liberty Reserve – 2006

Liberty Reserve can be taken as a botched attempt towards creating a centralized anonymous money transfer business. It allowed users to create accounts on the platform and transfer money to anyone without any verification. User accounts were not verified and users also had an option to hide their Liberty Reserve account information from those whom they are transmitting money to.

However, as expected it became the most favored place for cybercriminals and the government didn’t like it. Liberty Reserve was forced to shut down by authorities from multiple countries and its promoters jailed for money laundering and supporting illegal activities. By May 2013, the platform was shut down by regulatory authorities.

d. Perfect Money – 2007

Perfect Money is another digital currency platform that works with multiple currencies including USD, EUR, GBP, BTC and more. Like most of the other digital currency platforms in the past, death of one established platform will result in a surge in growth of its successor. The same thing happened with Perfect Money. Customers from Liberty Reserve flooded Perfect Money after the former was shut down by regulators. Perfect Money also offers services similar to that of Liberty Reserve sans the lack of verification. However, Perfect Money is not available in the United States and for United States citizens located anywhere in the world.

e. Bitcoin – 2009

Bitcoin was first introduced in 2009 as a working decentralized digital currency platform. Unlike all the other digital currencies in the past, Bitcoin has an advantage in the form of its decentralized nature which leaves the whole platform in charge of a much larger community than an individual or corporation. This will also eliminate the possibility of someone running the whole setup to manipulate the public in order to satisfy their own greed and selfishness. Not to mention the fact that the bitcoin protocol is open source, preventing anyone from having a monopoly over the whole system. The security and transparency associated with bitcoin is worth mentioning as well.

Bitcoin seems to have hit the right chord, satisfying all the apprehensions about digital currency that have been built over years of experience with centralized, proprietary digital currency platforms. Following the popularity of bitcoin, there are new digital currencies that have come up, including national currencies. Ecuador has adopted its own digital currency and even Barcelona; Spain has plans on including digital currency as its legal tender."

Please, see the source:

https://www.newsbtc.com/2015/11/01/a-brief-history-of-digital-currency/

2018 will be the year when viable blockchain business opportunities will emerge, driven by real needs or gaps in existing workflows. As these are opportunities are explored, interoperability will become top-of-mind and interesting interoperability projects will emerge (see the Cosmos project) that look very promising in their ability to securely and reliably connect multiple blockchain networks.

As interoperability challenges are addressed, confidentiality will become the next area for significant advances. For example, zero-knowledge proofs, a method where one party can prove to another party that a given statement is true without conveying any information apart from the fact that the statement is true, will likely improve in terms of both performance and scalability.

Additionally, expect to see concepts emerge that could be coined “Software Defined Trust” this year—the convergence of “software defined network” with “systems of trust” that will eventually be as easy to deploy as a virtual firewall or some other virtual network appliance. 

Blockchain is very much a network technology and will evolve similarly to the way that the internet evolved—although at a much faster pace. As a result, technological advancements will unfold and we’ll see the simplification of discovery, deployment and utility-of-trust systems that employ blockchain, which will lead to a new era of the internet—an internet of value that provides secure value flow across a whole range of industry segments...

https://www.smartindustry.com/blog/smart-industry-connect/blockchain-nimble-valuable-and-ubiquitous/?_hsenc=p2ANqtz-8bfKE-xmopWYz94fUvu01OBittSCv5CU9fHMQOFluewRoqkbkoF_rI7zipp9duAQE2NzB-GrTzv3jPStSBX2vzKoOZjg&_hsmi=61047478

Dear Colleagues, Good Day,

"What is cryptocurrency mining?

Ever wondered how bitcoins are actually made?

Over the past several years, cryptocurrencies like Bitcoin have been quietly growing in popularity, with an ever-larger number of people buying and selling them. Now that Bitcoin has hit the mainstream and become a worldwide phenomenon, more people than ever are looking to get into the cryptocurrency game.

However, the production of cryptocurrencies isn't anything like that of regular money. There's no central authority that issues new notes; instead, bitcoins (or litecoins, or any of the other so-called 'alt-coins') are generated through a process known as 'mining'. So what is cryptocurrency mining, and how does it work?

Cryptocurrency mining and the blockchain

To understand how cryptocurrency mining works, you have to first understand the concept of the blockchain. The blockchain is the technology that underpins virtually every cryptocurrency, and it basically operates as a decentralised record - or public ledger - of all the transactions that have been conducted with a given cryptocurrency.

Transactions are collected into 'blocks', which are then authenticated (verifying that all the transactions are real and legitimate) by 'miners' (who check that the same coin hasn't been spent again before the transaction has cleared, and that the input and output amounts match) and the next subsequent block of transactions is then linked to it. This forms the basis on which cryptocurrencies are built, but it's also how new units of those currencies are generated.",...

Please, see the website link for the rest of the article:

http://www.itpro.co.uk/digital-currency/30249/what-is-cryptocurrency-mining

Good infographic about mining!

https://www.linkedin.com/feed/update/urn:li:activity:6372410191463485440

Dear Colleagues, Good Day,

"IMF urges central banks to study digital currencies

Central bank-issued digital currencies would reduce the risk of using blockchain for cross-border payments and should be studied in more detail by global authorities, the International Monetary Fund says in a new paper examining the impact of fintech on the financial system.

With banks around the world testing blockchains such as Ripple for sending money overseas, the IMF found distributed ledger technology (DLT) could reduce international payment costs and barriers to entry, while increasing speed and traceability while making payments more secure. 

But the "potentially erratic valuation of virtual currencies" is reducing the attractiveness of using distributed ledgers for international payments because fiat currencies need to be exchanged into some crypto-currency token to move across the network, and then out into another fiat currency at the receiving end.",...

Read more:

http://www.afr.com/business/banking-and-finance/financial-services/imf-urges-central-banks-to-study-digital-currencies-20170619-gwtydo

Dear Hazim Hashim Tahir,

Thank you so much for sharing the kind information about Digital Currencies.

Accompanied by increased demand as speculation mounts more adventurous, concerns are still surrounding them, but they are needed as expected