Currency

• Features of Currency 


  • Tangible
  • Durable
  • Portable
  • Recognisable
  • Stable
• What is Tangible mean 


  Has a medium of exchange and trade
• Meaning of durable


  Can easily be reused multiple times
• Meaning of Portable


  Can easily be carried arround
• Meaning of Recognisble


  People can understand its value
• What is meant by stable 


  The value of the currency is constant over time
• Problems with currency 


  • Counterfeiting
  • Hyperinflation
  • Currency exchange has a fee
• What is meant by the term counterfeiting 


  The creation of fake coins and notes
• What is meant by the term Hyperinfaltion

  Where prices of products go up due to the value of currency being worth less as governments print to too much of it
• What is Meant by the term commision


  The currency has a fee for exchange
• Features of Digital currency


  • Only exist electronically Value
  • Have no intrinsic value
  • Value based on what people think its worth
• How do Digital currencies work 


  • Stored in A file database known as wallet
  • Cold Storage
  • Encrypted
• What is meant by the term Cold storage 


  Where the file with the keys are printed out so that it cannot be digitally hacked
• What are the features of Encyrption 


  • Private Key
  • Public Key
• What is meant by the term public key 


  A Key that is used to pay money into an count eg a normal bank account
• What is a meant by term of Private Key 


  • The private key is kept secret for spending or buying
• What two details are needed to spend digital currency 


  • The public key which contains the digital currency adress
  • An electronic signature created using the private key that corresponds to the public key
• Uses of digital currency 


  • Speeds up internet Transfers
  • Transactions cost are low and need bank account
  • Can be used as a digital saving account
  • Payment of Goods
• Advantages of Digital Currency 


  • Hard to counterfeit
  • May be used anywhere to transfer money