(take bitcoin as an example)
1. Issuance: the issuance of legal currency requires the participation of third-party institutions, and digital currency is completed through distributed algorithms. In history, inflation and deflation are often caused by unreasonable currency issuance, while digital currency lacks large-scale verification and needs to be verified.
2. Transaction: for legal currency, whoever holds legal currency is the legal owner. Of course, we exclude illegal acquisition. The transaction can be completed through the transfer of legal currency itself and cannot be copied. It is much more complicated for digital currency, because any digital item can be copied, but the form of digital currency also means lower transfer cost. In general, the two apply to different scenarios.
3. Carrying: in most scenarios, digital currency has better portability, especially for a large amount of legal currency (the chief architect of the Monetary Research Institute of the central bank once said that the cost spent by the central bank on RMB escort is 35 billion a year, and the printing and recovery cost of RMB 100 each reaches 2 yuan).
4. Resources: generally, the production cost of legal currency is much lower than that of digital currency with the same denomination. The calculation of resources consumed by digital currency is complex. Taking bitcoin as an example, it consumes a lot of power. Of course, there are other digital currencies using other methods, but they all consume electric energy to varying degrees.
5. Anonymity: usually, both provide good anonymity. However, they are unable to defend against intentional tracking (legal currency is based on the number, and digital currency is based on the account information). There are many good anonymous coins in digital currency.
6. Anti counterfeiting: both have their own advantages, but digital currency is slightly better on the whole. Legal currency depends on the delicacy of various designs (paper, ink, dark grain, interlayer, etc.), while digital currency depends on the security of cryptography. Counterfeiting of legal currency occurs from time to time, but digital currency counterfeiting can not be realized at present.
7. Counterfeiting detection: even if the legal currency is identified by special equipment such as banknote detector, there is still misjudgment. It is easy to identify the authenticity of digital currency by relying on cryptography.
Above, we compare digital currency and legal currency from different fields. Although digital currency is not superior to legal currency in all fields, it has relative advantages in carrying, anti-counterfeiting and anti-counterfeiting. However, the problems of digital currency in large-scale use, system performance and security still need to be solved.
The attribute difference between digital currency and legal currency
