Each type of money has its place in the monetary system. Before moving on to the myths about money, lets look at their nature and classification. Initially, they are divided into full-fledged and defective. Among the first are gold coins and bullions, and electronic money is conventionally included in them.

The second type is paper and credit, which, in turn, are divided into bank cards, banknotes, checks, bills of exchange and electronic money. The last type is for fiat, non-fiat and virtual. Electronic money generates the greatest interest, curiosity, controversy and discussion. This is how myths about electronic money are created.

Whatever doubts may be about the viability or prospects of electronic money, they really exist and function successfully as a payment instrument. Advantages such as low commissions even for international transfers, microtransactions (fractions of a cent or a penny), speed of money transfers, characterize them positively.

 

Debunking myths

Some people fear the insolvency of electronic money and attribute features that are not inherent in it. For example, they claim that they are not provided with anything and do not guarantee their safety. Such a conclusion can only be made by those who do not understand where they came from on the account. Yes, in the process of exchange, electronic money may seem like only a set of numbers that change with each movement after a completed transaction.

At this stage, there is no need for real paper banknotes to see and touch. But in reality, the numbers did not come out of nowhere, as the authors of the myths about money try to prove. Despite the lack of material embodiment, digital currency outperforms fiduciary competitors in many ways.

After opening an electronic wallet of any of the payment systems (WebMoney, Yandex.Money, PayPal, Visa QIWI Wallet), the user of the corresponding resource replenishes it with real money (rubles, dollars, hryvnia, etc.) through an operator, ATM or bank card. Electronic money differs from real money in that all transactions are made in a non-cash format.

 

Better in the West

It is generally accepted that in developed European countries electronic payment systems are much more advanced than in the countries of the former Union. But this is another myth about electronic money. This is a conventional wisdom associated with a higher standard of living, better infrastructure. But with regard to the introduction of electronic monetary systems, one cannot speak of a lag, in particular of Russia and Ukraine. Citizens of these countries who are users of the electronic form of payments can be calm, they will not suffer from the imperfection of the virtual payment system. In addition, digital money is rapidly gaining popularity in the former Soviet republics and in the third world.

 

Online only

The area of use of electronic money is quite wide. Although the creators of the third myth claim that the scope of their use is limited only to the Internet. The only part of the truth is that you cant do without the web to make transactions. But virtual currency is used not only in the vastness of the virtual world.

Special cards have already been created that can be used to pay in stores. The possibilities of its use are still limited, but in the future they will clearly be expanded. It is not yet possible to buy an apartment or a car with such a card, but any household item or clothing is quite possible.

 

Electronic currency is not real

Dealing with the first myth, which echoes the next, we have already said how money appears on a virtual wallet. The myth about money that it is not real is understood by those who do not allow themselves to be deceived. One has to be surprised at the persistence of official structures and financial institutions that refuse to acknowledge the existence of cryptocurrencies. Meanwhile, the total capitalization of Bitcoin alone has exceeded $ 6 billion and continues to grow.

 

Fear of virtual money

Seeing danger in everything new is a characteristic feature of those prone to panic caused by fear. It manifests itself very clearly in relation to the new type of money. Someone came up with the idea that a bank card is much safer to use than electronic money. And others piously believed in it. This is actually another e-money myth. If you look closely, you can be convinced of the absolute groundlessness of such a warning.

As in the banking system, where a secret code is entered, a password is required in the electronic one. In addition, more advanced techniques are constantly being introduced in modern virtual payment systems. Large companies have formed an Alliance (with the participation of Google and PayPal) to develop new, close to ideal solutions that can significantly strengthen existing security standards. The role of the password will be performed by a separate mobile USB device, which will put an end to the security system of the electronic wallet.

 

Myths about the electronic cryptocurrency Bitcoin

One of the varieties of electronic money is Bitcoin. It surpasses all currencies like it in the number of myths about it. Here are some of them:

The myth that Bitcoin is no different from their peers. This is not true, the main and important difference is the lack of centralized management.
Bitcoins cannot fulfill all the functions of fiat money. On the contrary, in addition to all inherent in ordinary currency, their functions are much broader.
Cryptocurrencies can be destroyed by the governments of states due to their illegality. In practice, this cannot be done because there is no starting point that could stop the system. Such a decision is beyond the power of any government.
The nature of such myths is such that they appear on the basis of ignorance, ignorance, misunderstanding. In the case of electronic money, we can say that they are invented by ardent opponents, conservatives and ignoramuses.