Although electronic money is not a completely alien topic (after all, everyone knows what money is), but there are still some confusing things to understand about it. Therefore, it is not surprising that the misconceptions about electronic money are still widespread on the Internet. Here are the most common misconceptions about electronic money and why you should not believe it.

1. Electronic money will completely replace the fiat currency
Fiat money is a currency that a government has declared it is a pre-emptive currency (for example, US Dollar, Euro, Japanese Yen) - and no, it will not soon become obsolete at any time, Electronic money enthusiasts still think.

It is unrealistic and unreasonable to replace all fiat money. Although the majority of the world's population is online, thousands of people do not have access to the Internet. But fiat money and electronic money can coexist - and this has happened - and the presence of this does not signal the extinction of the other.

2. Electronic money does not have any "intrinsic value"
We all know that some people always ironically commented, "How is electronic money worth?"

And here is the answer you can give them: that statement can apply to any other currency in the world. One day, the whole world may decide to stop believing in the US dollar and then the US dollar will no longer be valid. Society determines what is worth and not.

More importantly, electronic money meets the five criteria needed to be considered "currency": Interchangeability: Currency units must be consistent and interchangeable. If you trade a pound Euro bill with a different bill, you will still have exactly one pound.

Scarcity: The currency needs to be limited because if it can be easily obtained it will have no meaning in storing value and not being accepted in circulation. For example, only 21 million Bitcoins will be released, which gives Bitcoin a limited supply.

Durability: The currency must be durable to perform the function of storing valuable as well as useful in exchange. You can visualize the use of paper towels as a currency. Although they are limited, homogeneous, and interchangeable, paper towels are not very durable. On the other hand, electronic money is stored on decentralized networks and, therefore, exists as long as the network exists.

Transportability: Currency is traded for goods and services. One that wants to be considered currency, it needs to be convenient to store, carry and easily transfer from one person to another.
Division can be divided into smaller units. Let's say a simple example, when people exchange a cow to get two goats, but someone just wants to buy a goat, that person can not trade with half a cow. This system is very inefficient. Currency needs to be broken down as needed.

3. You can only buy electronic money by coin
Bitcoin is the first electronic currency to be created, and from that story most people assume that you can only buy it with a coin. This also leads to the assumption that it is very expensive to obtain an electronic currency (1 Bitcoin = 6,510.73 USD). Both of these concepts are misconceptions. You can buy a piece of electronic money. Can buy 0.001 Bitcoin, 0.0001 Monero or 0.01 Dash.

4. Electronic money is only used for illegal transactions.
It is true that electronic money is also used by bad guys in some illegal transactions. An Australian study found that 25% of Bitcoin users and 44% of Bitcoin trafficking were involved in illegal activities.

But that does not mean that electronic money is something extremely evil. The US dollar is also used for illegal transactions, or the Indian rupee as well as the Russian ruble. Any currency can be used for illicit purposes. In addition, electronic money can still be used to pay for well-known establishments such as Microsoft, Subway, Wikipedia, Expedia and even OkCupid.

Electronic money can be considered scary, but do not think like that. After all, it's just another currency. Take time to familiarize yourself with the "corner" of electronic money, or the characteristics and complexity of them and you will soon be able to trade as a professional in a short time.