RE: Is Digital Money the Answer? - UNDERSTANDING THE BLOCKCHAIN; Episode 2
Hi @gamsam
Finally I've found some time to catch up and read few previously bookmarked posts.
We’ll be talking about Digital Money.
For some people Digital Money = crypto. For many others it's not crypto, but instead it's new creation of FED and other central banks. Fully centralized digital currency.
Sometimes I wonder if digital currencies backed up by central banks will be a real threat to crypto. I wonder what's your view on that issue?
Eve Online uses a currency called the Interstellar Kredit (ISK). The ISK could be purchased by users in the real world with actual Fiat and be used to buy a space ship for example in the game. If the user’s space ship is then blown up in the game, the money is actually lost.
Can those currencies be cashed out to FIAT? Or is it only one-way transaction?
Solid read. Upvoted already ;)
Yours, Piotr
Hello @crypto.piotr
I can understand why some people might consider digital money to be equal to crypto. The fact though is that crytpocurrencies are just types of digital currency. There are a lot of other types of digital currencies like in-game currencies which was explored in this post.
Cryptocurrencies are decentralized digital currencies. This is what makes them unique and much different from other types of digital currencies. For a currency to be decentralized, it must meet a certain criteria and that is in fact what I talked about in my most recent post here.
I don't think digital currencies backed up by central banks will be a real threat to crypto because they still have the same problem that Fiat money has; CENTRALIZATION. They could be altered in a whole lot of ways because they are controlled by a central authority - the banks and the government.
Although these games themselves might not offer an option where the in-game currencies can be converted to fiat, most of them are transferable between players. Because of this, players have created third party platforms and forums as black markets where they can exchange their in-game assets for other commodities or fiat.
Thanks for the comment. Cheers