After rising $ 2,500 a day ... Will Bitcoin become the preferred currency for global trade?
The leading digital currency, Bitcoin, rose today, Sunday, March 7, by more than 5%, adding more than $ 2,500 to its value, as it rose again to levels above $ 51,000.
Economist Samir Raouf said that the current digital currencies in general are the nucleus of the future development that will take place in the global financial system, and financial transfers via the Internet have started to spread in the world more in previous years.
In statements to "Echo of the Country", Samir Raouf added, "This is a natural development for modern financial systems that started with a visa card and reached cryptocurrencies, and it will develop further in the coming years as a result of citizens' reliance on the Internet in most of their dealings."
He continued: The process of electronic transfers of digital currencies comes in the same way as traditional currency conversions. Instead of converting $ 1000, for example, the equivalent pieces of a digital currency such as (Bitcoin) are converted and have its own technology and are used under the name (block chain or block chain) and The currency can be divided into pieces.
He pointed out that Bitcoin is not serialized like paper currencies until it has a value and has a demand in the financial markets and accepts electronic payment of cash currencies.
He continued: In spite of that, however, these electronic currencies may contribute to money smuggling operations abroad for several reasons, money laundering operations, and transfers outside the control of central and international banks, and operate through (the deep web) or the network. The dark
Explaining that, that it is transferred through personal accounts that only the person himself uses with a secret number that no one else knows, and therefore it is not monitored by the central banks in the world and cannot be penetrated or known and that it does not contain serial numbers as in paper currencies, and thus it is possible It is used to smuggle money and cannot be tracked
He said that electronic currencies are witnessing from time to time sudden large increases and decreases in their value, and they may be economically unjustified rises, and this is a great contradiction between technology and the economy, and therefore it is possible for the investor to put a large percentage of his money in it and when its value falls, he easily loses his investments.
And he stressed that these currencies have no assets or monetary cover like gold, in addition to that they exceeded the paper currencies in an exaggerated manner, and the (obsession) of speculation became very high thanks to the technology used that produced more than 4000 cryptocurrencies.
He continued: Also, most countries do not recognize transactions on them so far despite the support of some countries on their heads Germany, China, the Emirates and Japan, and in Egypt they are regulated by the new banking law that allows the central bank to issue new electronic currency similar to these currencies, such as some countries and large entities such as Facebook and issuing The piper currency, but despite this, it is possible that this currency, along with other digital currencies that have reached 4000 thousand currencies, will be a good alternative to paper currencies in the near future
He pointed out that investing in digital currencies is considered a risk, especially in the event of losing the traffic number or the investor's computer is exposed to hackers, which exposes the investor to losing his money in these digital currencies, and advice to those who continue to keep the wallet numbers secretly in a place that no one else knows and not to buy It only performs mining operations on cryptocurrencies
