Lesson 2: What is the difference between cryptocurrency and e-money, loyalty services, and credit cards?

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When learning about cryptocurrencies, the immediate question is, "How is it different from electronic money? This is the point. Cryptocurrency is difficult to imagine because it has no substance, but it is literally a "currency. First, let's clear up this question.

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  • How is it different from electronic money?
  • How is it different from point services?
  • How is it different from credit cards?

What is the difference between e-money and cryptocurrency?

E-money is just an alternative to fiat money.

Therefore, you cannot exchange electronic money for U.S. dollars or use electronic money in U.S. dollars outside the United States.

Cryptocurrency, on the other hand, is a currency in its own right.


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What is the difference between point services and cryptocurrency?

Point services have set rules for exchange rates and usage with fiat currencies.

In particular, most point services prohibit the transfer or sale of points between users.

Cryptocurrency, on the other hand, is a currency in itself, so users can freely set exchange rates and buy and sell among themselves.


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Differences from Credit Cards

The biggest difference between credit cards and cryptocurrencies is the payment fee.

When you pay with a credit card, the store is charged a fee of about 3% by the credit card company, but there is almost no fee for cryptocurrency payments.

Also, as long as the store has a wallet, it can accept payments in cryptocurrency, so there is no need to prepare a special terminal like with credit cards.


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Lesson 2: What is the difference between cryptocurrency and e-money, loyalty services, and credit cards?

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