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What is the difference between virtual currency, digital currency, and cryptocurrency, and what is a cloud mining contract?

What is the difference between virtual currency, digital currency, and cryptocurrency, and what is a cloud mining contract?

​Speaking of Bitcoin, there may not be many people who knew about it ten years ago, but now it can be said that women and children are well-known, and it is a hot topic in street talks. So, should Bitcoin be considered a virtual currency, digital currency, or cryptocurrency? What is a cloud mining contract? I’m afraid that many people will not be able to answer this question. Today, let’s talk about the similarities and differences between virtual currency, digital currency, and cryptocurrency.

What is a cloud mining contract? Virtual currency
In 2014, the European Banking Authority (EBA) defined virtual currency: “Virtual currency is a digital expression of value. It is not issued by a central bank or a public authority, nor is it necessarily linked to a legal currency, but Natural persons or legal persons accept payment methods and can conduct electronic transfers, storage or transactions".
Visible virtual currency refers to any currency that is not printed on paper or metal, so it is virtual and only exists in the virtual world. Therefore, virtual currency covers a wider range. For example, tokens in many games and reading coins in e-book apps can be counted as virtual currencies. Usually, it can only circulate in one direction, that is, it cannot be exchanged for cash or transfer transactions.

Virtual currencies are generally issued by network operators, and the number of issuances is determined by the issuer. Credit protection comes from the operator’s brand credit. What is a cloud mining contract? The number of issuances and pricing can be changed at any time, and they can only circulate in one direction in a certain scenario. So to a certain extent, this type of virtual currency is more like a "toy."
But by definition, the scope of virtual currency is the largest. Bitcoin can also be regarded as a decentralized virtual currency, but it is essentially different from Q coins and game coupons. For example, it is not controlled by any centralized institution and can be used to purchase certain goods and services that are exchanged with legal currency in both directions, so Bitcoin defines Bitcoin as an encrypted (digital) currency more accurately. Therefore, some people in the securities industry believe that virtual currencies only refer to Q coins, and do not include cryptocurrencies such as Bitcoin.

What is a cloud mining contract? Digital currency
The definition of digital currency is the most divergent, but the unified part is a currency presented in digital form, rather than physical currency such as banknotes and coins, which assumes functions similar to physical currency, but can support instant transactions and unrestricted ownership transfer.
Digital currencies include encrypted (digital) currencies and central bank digital currencies, and this is where the differences lie. Some authoritative organizations believe that only digital currencies with legal status issued by the government of a country are true digital currencies. For example, the China Internet Finance Association Blockchain Working Group wrote: “Digital currency must have legal status, national sovereignty endorsement, and clear issuance responsibility. What is a cloud mining contract? Virtual currencies represented by Bitcoin and Ethereum have no country, no sovereign endorsement. There is no qualified issuer, no national credit support, these are not digital currencies."
Unlike virtual currencies that can only exist in virtual worlds such as games and apps, digital currencies can be currencies that exist in the digital world. This type of electronic currency is more accurate, but it can also be counted in digital currencies in a broad sense. The real (narrowly defined) central bank digital currency is still in the research stage.

What is a cloud mining contract? Cryptocurrency
Cryptocurrency is a digital currency created based on a certain encryption algorithm, so it is better to understand it as an encrypted digital currency. Cryptocurrency is not issued by any centralized organization. In theory, it will not be affected by government interference and control. At present, Bitcoin, Ethereum, EOS, and other currencies in circulation in the currency circle are all cryptocurrencies.
One of the main goals of cryptography is secure data exchange. Cryptography creates and analyzes algorithms and protocols so that the transmitted information will not be changed or destroyed by third parties. Cryptography combines various scientific principles, mainly mathematics, which provides the accuracy and reliability of algorithms and protocols.
The "encryption" of cryptocurrency is relative to the "non-encryption". Non-encrypted digital currency is a centralized digital currency. What is a cloud mining contract? The number of issuances is determined by the issuer. There is a group of people and a computer network that monitors online transactions. Transactions are supervised by a centralized organization. Wallet addresses and transaction information are not published. The company or the digital currency or virtual currency issued by the state is such.
As for the distributed accounting system adopted by cryptocurrency, the consensus mechanism is formulated by most users in the community, which has good privacy protection for users, but the transaction information is completely open and transparent, and the transaction rules will not be affected by an institution or individual changes without authorization are subject to the supervision of all members.
Therefore, in the field of blockchain investment, the accurate positioning of various currencies is encrypted (digital) currency, the digital currency that the public is concerned about and discussed, whether it is about Bitcoin, ICO, or the digital currency that central banks are concerned about and exploring. , Its essence is cryptocurrency.