Digital currency is an alternative currency in the form of electronic currency. It is an unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of a specific virtual community.
It is different from the virtual currency in the virtual world, because it can be used for real goods and services transactions, not limited to online games. The early digital currency (digital gold currency) is a form of electronic currency named after the weight of gold. Today's digital currencies, such as bitcoin, lightcoin and ppcoin, rely on parity sum cryptography to create, issue and circulate electronic currencies.
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At present, digital currency is more like an investment product. Due to the lack of strong security institutions to maintain its price stability, its role as a measure of value has not yet been shown, nor can it be used as a means of payment. As an investment product, the development of digital currency is inseparable from trading platforms, operating companies and investors.
Trading platform plays the role of trading agent, while some play the role of market maker. The profits of these trading platforms come from the current expenses and premium income of investors trading or holding digital currency.
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