Virtual currency, also known as digital currency, is a type of unregulated currency that is only available in electronic form. It can be centralized, where there is a central point of control over the money supply, or decentralized, controlled through distributed transaction networks.nn### Types of Virtual Currency:n1. Bitcoin: The first decentralized virtual currency, created in 2009 by an unknown person using the name Satoshi Nakamoto. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public ledger called a blockchain.n2. Ethereum: Launched in 2015, Ethereum is the largest and most well-known open-ended decentralized software platform. The currency itself is known as ‘Ether’.n3. Altcoins: This refers to all other non-Bitcoin cryptocurrencies. They often present themselves as an improved version of Bitcoin, with modifications to Bitcoin’s open-source code.nn### Pros of Virtual Currency:n- Increased Privacy: Transactions remain relatively anonymous.n- Reduced Fraud Risk: They cannot be counterfeited or reversed arbitrarily by the sender.n- International Usability: This is due to the universality of the digital transaction.nn### Cons of Virtual Currency:n- Price Volatility: Prices can be highly volatile and there’s potential for large financial losses.n- Limited to No Regulation: This can create an environment for illegal activities.n- Data Loss: If the digital wallet is lost, the virtual currency are lost forever. Read More
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