What are the advantages of Internet currency over legal tender?

Advantages of Internet currency include:

Convenient and fast: Internet currency can realize instant transfer and transaction, eliminating the cumbersome procedures and time delay of traditional financial institutions.

Global payment: Internet currency can realize transnational payment without testing exchange rate and international payment fees.

Low cost: The handling fee for Internet currency transactions is lower than that for cross-border payment by traditional financial institutions.

High security: The transaction process of Internet currency adopts advanced encryption technology and security verification measures to ensure the security and traceability of the transaction.

Anonymity: Online currency can realize relatively anonymous transactions and protect users' privacy.

Innovative application: As a new digital asset, Internet currency has promoted the development of blockchain technology and financial technology innovation.

The disadvantages of Internet currency include:

Volatility: Internet currency prices fluctuate violently, which is easily affected by market supply and demand, investor sentiment and other factors.

Higher risk: There are many scams in the field of Internet currency, and the risk of speculation is high, so investors need to be cautious.

Difficult supervision: the supervision in the field of Internet currency is not perfect, and there are some loopholes and problems in supervision.

Limited acceptance: Compared with traditional currency, the circulation scope of Internet currency is still limited, and it has not been widely accepted and popularized.

The advantages of legal tender include:

Strong stability: under the supervision of the government and the central bank, legal tender has high stability and relatively small price fluctuation.

Wide circulation: legal tender is widely accepted and used and can be used as a medium of exchange for various goods and services.

Strong solvency: because legal tender is recognized as legal reserve assets, it has the ability to pay off debts and can be used to pay taxes, fines and other legal financial responsibilities.

Strong supervision: the government and the central bank have great power to issue and supervise legal tender, which can effectively prevent the risks of currency circulation and financial system.

The disadvantages of legal tender include:

High circulation cost: legal tender needs to go through complicated procedures and approval procedures in the process of circulation payment, which is time-consuming and labor-intensive.

Influenced by political factors: Political factors have a great influence on the exchange rate and currency value of legal tender, and are easily influenced by political risks and policy changes.

Relatively conservative: because the government and the central bank are too cautious about the supervision of legal tender, the development of legal tender is relatively slow and the degree of innovation is not high.