Cryptocurrencies are the future of finance and technology. A cryptocurrency is available is digital form, as opposed to paper (banknotes) or coin currency. An important distinction between digital, virtual, and cryptocurrency needs to be made. 

Digital 

How much money exists on Earth? That answers depends on how you define money. There are several measures of money supply: 

M0: Consists of coins and banknotes. Valued around  ~USD 5 Trillion.

M1 (a.k.a narrow money): Consists of M0 + quickly accessed money e.g. checking deposits. Valued around ~USD 27 Trillion.

M2 (a.k.a broad money): Consists of M1 + saving and time deposits + money market accounts. Valued around ~USD 80 Trillion. 

This means only around 6% of money is in physical form. The rest is stored in some digital form.

Virtual 

In 2014, the the European Banking Authority (EBA) defined virtual currency as "a digital representation of value that is neither issued by a central bank or a public authority, nor necessarily attached to a fiat currency, but is accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically”

Examples of virtual currencies include airline miles, game points and other assets, online credits etc. 

Cryptocurrency 

Cryptocurrency is a portmanteau of the words cryptography and currency. Cryptocurrency can be both, digital and virtual. The distinction is that the currency is based on a cryptographic algorithm e.g. SHA-256 or Scrypt. 

Examples of cryptocurrency include bitcoin, litecoin, and ethereum.  

 
About Rain

Rain is a cryptocurrency exchange in the Middle East. Buy, sell, and store bitcoin and other cryptocurrencies, in a regulated, secure, and compliant way.

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