DigiGulden works like bitcoin.
Bitcoin was once conceived and designed as a digital payment method. The genius of bitcoin lies in the fact that transactions are done on the decentralized bitcoin network. Bitcoin’s network consists of thousands of computers around the world. Every computer in this network controls all the other computers, making it virtually impossible to hack into the system. This makes the use of the bitcoin network very safe.
Another advantage of the bitcoin network is that no one is in charge, wallets (accounts) cannot be frozen and money can never be expropriated. Not by banks and not by governments. Bitcoin is far superior in this area compared to, for example, the banking system. We all have an account with a bank and while it probably won’t happen to you, the bank can seize, freeze or even expropriate your funds. The bank has and uses that power, with crypto no one has that power, everyone is equal.
“Everyone can benefit equally”
In summary, bitcoin offers the safety and security of cash (only available to the owner) with the benefits of digital money. For example, you can make a transaction with Bitcoin to someone abroad and thist is not possible with cash money. So the ultimate freedom that Bitcoin offers us are similar to that of cash money. However, it also has the disadvantages of cash, if you lose it, there is no bank that can / will get your funds back. It is therefore important to handle your crypto assets with care.
Why the DigiGulden now?
Bitcoin was once conceived as the perfect means of payment and we have read above that Bitcoin is indeed revolutionary. Yet we still do not pay with bitcoins and that has a number of reasons. Money (as we now have the Euro) as a means of payment must at least meet a number of criteria to make it usable and suitable as a daily means of payment. Firstly, transactions have to be fast, you don’t want the transaction of your cup of coffee at the gas station to take 10 minutes, you want the payment to be completed within a second as is the case with card payments. In addition, transactions must be cheap, a debit card transaction costs the retailer on average between 5 and 20 euro cents. The third criteria is turnover rate, which means that enough people have to use the payment method and that enough transactions take place.
The turnover rate of Bitcoin is good enough, there are millions of users around the world and thousands of transactions are processed every day. The other two criteria, transaction speed and transaction costs, are currently areas where Bitcoin does not score enough to be a good everyday payment method. For example, an average transaction takes much longer than a minute and a transaction regularly costs more than 5 euros with peaks well above that.
” Very fast and very cheap”
The DigiGulden is different, it offers the benefits of Bitcoin without the drawbacks of Bitcoin. Just like Bitcoin, DigiGulden is decentralized (secure and independent of banks), but it is also able to handle transactions quickly and very cheaply. The DigiGulden is therefore the first Crypto that is particularly suitable as a daily payment method. In addition, the DigiGulden is of course specially made for the Dutch market, for and by Dutch people, in the Dutch language.