All money now is virtual money

This was made clear to me, while I was studying the Ethereum BlockChain. Using their software, you can create a new currency, out of thin air, and call it whatever you like.

This is like the money that was created, by the many new banks, early in the 19th Century. They bought a printing press, and printed all the money they wanted. They were supposed to only print money that was backed up by specie, coins that could be melted down to get their valuable metals, such as gold and silver. But they usually printed more - because people wanted cheap money.

This method of creating money, was popular with Real Estate speculators - who could get money based on the worth of their property. Or any kind of speculator, who wanted to get rich fast.

The alternative is a managed currency, such as the American Dollar. The supply of money is adjusted to keep the economy running smoothly.

The banks are closely regulated, to keep them from running out of control.