The virtual money in this case (an online statement) doesn’t actually exist, it’s just a value system used by the bank to be translated into hard cash if ever you have to make a withdrawal. But that virtual currency isn’t a thing in reality, even if on the backend it might have its own funky way of working in the financial system.
So how does that compare to crypto? Like with any currency, value is determined by 1) how useful it is to us and 2) what we say it’s consequently worth, so what’s the conceptual difference between, say for example, 20 chainlink (for example) “dollars” and 20 virtual dollars in my bank that represent cash?
Are they *actually* different things, and if so, how?
In: Technology
Central Banks have people to manage their currency’s money supply whereas Cryptos have formulas to regulate that crypto’s money supply.
Otherwise I want to say they are nearly same. Both are…
1. Digital representation of value
2. Stored in a database (albeit, blockchain is a neat type of database but still just a database)
Certainly differences exist for who can access said database…who configures and manages the database…what you can exchange the currency/value for in the world…but I don’t treat Dollars and Euros differently in this argument for those same reasons.
But at the end of the day in both circumstances you hold a specific number of items of a currency. And a place to write down how much everyone has.
Let’s forget it’s all digital. If we had paper Bitcoin and paper Dollars and a simple bank that stored everything inside. I would think the only real differences between those paper currencies would be who issued them and how they issue more or less of them.
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