E-Money Vs. Bitcoin: PSI Pay explains

Posted on July 7, 2018

In a recent article from technewsspy.com, the people from PSI Pay made an effort to educate the public about the differences between Bitcoin and Electronic Money. As an alternative financial institution dealing with cryptocurrencies and E-money, there is no doubt the folks from PSI Pay they are well versed in the topic.

 

The people from PSI Pay explain that the confusion exists because certain media outlets have regularly confused the two terms, confusing the public as a consequence. So, to clear it all up, they give us brief definitions of the two subjects in question:

 

E-Money:

Electronic money is just that. Money that has been stored in an electronic form. It normally requires the service of a third party like ecoPayz, and can normally be redeemed for hard currency. Electronic money is usually backed by fiat currency and supported by a major financial institution. For the most part, this money is used for online purchases within apps, games or programs.

 

More often than not, these services involve the use of an E-wallet. These are aptly named, as they work much like a real wallet. You load cash onto it from your account, and use it for whatever you need within that one app or program.

 

Bitcoin:

Bitcoin is a cryptocurrency. As such, it is not regulated or controlled by any one person or group. It relies on peer-to-peer exchanges rather than fiat currency. Instead of authenticating transfers of money through a financial institution, it uses an entire network. One of the more innovative aspects of Bitcoin is its capacity for self-limitation. The total number of Bitcoins in circulation at any one time never exceeds 21 million. This allows Bitcoin to avoid any risk of suffering due to inflation.

 

Some of the differences are obvious right away. As you can see, these are two entirely different money systems relying on very different principles. One is traditional while the other one has an outlaw reputation. One is straightforward while the other is more complex. One is monolithic and one is communal.

 

Another key difference is that cryptocurrencies like Bitcoin require the use of a digital wallet. This is basically a private encryption key that serves the purpose of authentication rather than storage since Bitcoins are not really stored anywhere.

 

PSI Pay is an FCA regulated institution that proves alternative methods of online payment and funds transfer. PSI Pay services cover a wide range of transactions and are available in 173 different countries.

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