Bitcoin rises are sparking the appetite of young investors

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Digital currencies impose themselves strongly despite the accompanying risks

The rise in the price of Bitcoin during various stages over the past decade has led to the youth’s desire to invest and risk in the desire to achieve rapid wealth, which was achieved by some experiences, as Tariq Jamal (an investor in Bitcoin) tells about his successful experience by investing in the currency when its price was 8000 dollars and after months it increased For about $ 10 thousand, he decided to sell it after making a quick profit, but he regretted the exit as Bitcoin rose to record levels later.

Tariq Jamal

He says, “I started investing, selling and buying in Bitcoin through a friend with knowledge of these currencies, and buying and selling takes place in groups on the social networking site Facebook.”

He adds that the only fear of investing in Bitcoin is forgetting the secret number because the currency’s dependence on blockchain technology makes it highly secure.

He stated that digital currencies are the future now, with many countries heading to them, while expectations indicate that they will rise to more than $ 40,000 per currency.

Although there are many currencies derived from Bitcoin, some of them are fake, as Tariq Jamal points out, which may lead to the loss of the money invested in it.

In contrast, an Egyptian pharmacist, who refused to be named, bought Bitcoin Gold at a price of half a dollar, with a total of 500 dollars for 1000 units of the currency, and despite warnings to him that it was a fake currency, it rose within less than a year to the price of 250 dollars and sold it then to achieve record gains. Before it later rose to $ 500 and then declined again.

Client MD, who has been trading in the forex markets for years, stated that he had made many buying deals on Bitcoin digital currency through the trading platform he deals with or uses, pointing out that he made some profits from the trading process as he is not inclined to high risks when Trading and fast buying and selling deals are done to prevent incurring losses at high values, indicating that trading the digital currency “Bitcoin” is high risk, and apart from the large fluctuation in its prices, the difference in the selling and buying price is large compared to other commodities and currencies. Therefore, entering Bitcoin means entering a loss. directly.

For his part, a customer from a Twitter account, in the name of Pink Dream, commenting on a post about digital currencies and investing in them, stated that he invested in Bitcoin and lost the money he invested.

In his comment on one of the posts about digital currencies on Twitter, SA indicated that he sees digital currencies such as Bitcoin as a great mystery and that he is afraid to deal or invest in them because their risks are high and that he is unable to determine their direction and the factors affecting their movements.

In a comment on the Tadawul company page, MF asked about the best time to buy the house (Coin), and whether experts advise him to buy now or wait for a correction in the currency rate, and he also asked about the best mechanisms and means of investing in the cryptocurrency

Contrasting orientations

The opinions of young people in the country differed between supporters and opponents of investment, as Yahya Mahdi – a Dubai resident believes that digital currencies are imposing themselves strongly on the investment scene despite being risky, as there is no physical presence such as banknotes and coins, but their gains The latter, especially Bitcoin, attracted attention to it after its price increased hundreds of times in a short period of time.

He explained that these currencies are experiencing high fluctuations and may be subject to strong ups or downs, and thus investing in them may lead to very large risks if the investor does not know how to deal with them, even if it appears to be an easy way to get rich from the point of view of some investors, but it may also become a way to bankruptcy.

A reasonable investment

While Hussain Khalil, a Dubai resident, said, “It seems that investing in cryptocurrencies has become a reasonable investment, but there are many risks surrounding the lack of clear knowledge about this type of currency, and I believe that cryptocurrencies will have a fundamental role in facilitating Payment operations and thus intra-state trade after being adopted on a large scale ».

“I liked the idea behind cryptocurrencies as we reached high levels of technological advancements,” Khalil added.

Distrust

For his part, Khalid Fansa, a resident of Dubai, said: “I do not trust dealing in cryptocurrencies due to the huge fluctuations in their price. This makes investing or dealing with it a great adventure, especially if the dealer does not have sufficient experience in investing.

Khaled Fansa

He agrees with the last opinion. M »One of the young people who do not deal in cryptocurrencies, that he recently heard talk about Bitcoin and thought about dealing with it, but when searching on the Internet, he found that it carries a lot of risks and is not codified, so he preferred dealing in the stock market as it is a clear and regulated market.

“Since the media started talking about cryptocurrencies, I have not been convinced of this type of investment or trade in these currencies,” said Ahmed Abdel Razek, a resident of the Emirates. “I feel uncomfortable and anxious and do not recommend dealing in these currencies.”

Ahmed Abdel Razek

Natural progression

The CEO of the Arab Trader Company, Ahmed Ayyad, said: “Keeping up with scientific progress and the technological boom that the world is witnessing, it is imperative to search for means of electronic transactions away from traditional means that guarantee the speed of transferring money easily, easily and securely, given the development of cash means from gold to paper and then to credit cards. We find that digital currencies are a natural result of this development. ”

Ahmed Ayad

Ayyad added: “Perhaps in our simple daily life, and not so simple, we have started to see what looks like digital currencies, as in many services you can get virtual points and you can exchange them from certain places for a specific fee, and you can also buy virtual currencies in some electronic games, and thus We have actually begun to use what looks like digital currencies in our daily life ».

Ayyad added: “Although the audience that uses the current traditional payment methods is still the largest due to the lack of adequate legislative and regulatory structure for the widespread spread of digital currencies, the use of digital currencies in light of the technological development the world is witnessing is a matter of time no more. Especially with the increase in global buying and selling via the Internet in light of the current Corona pandemic.

According to the executive director of the Arab Trader Company, some governments and central banks have begun to pay attention to the need for digital currencies and the existence of a global demand for them, pointing to the agreement of the UAE Central Bank and the Saudi Central Bank to launch a “transient” digital currency project as a new initiative that is one of the first experiences globally at the level of central banks. In this area.

Ayyad indicated that the currency is only used by the two central banks and the banks participating in the initiative as a settlement unit for commercial bank operations in both countries, whether they are local operations or operations between the two countries ’borders.

Although digital currencies will face difficulties in spreading among the general public during the coming period, the rapid technological revolution will make it the only and dominant tool in the world in the short term, according to Ayyad.

The greatest interest

In a recent report, GBMorgan said: “The greatest interest in Bitcoin comes from millennials (young people born between 1981 and 1996), who view the digital currency as an alternative asset to gold.”

Proof of this comes through the data of these currency trading platforms, and the Revolut platform says that the average age of a user who buys cryptocurrencies on its platform is 33, while eToro says that Bitcoin owners are 35 years on average, while Ethereum is an average The age of the investors is 33 years.

Some went on to say that “Bitcoin is better than gold, because it is easy to store, difficult to steal, and more portable, so it is possible to actually become digital gold.”

With the spread of digital currencies and some countries heading to launch their own digital currencies in the future, the most important factor remains spreading the financial culture necessary to clarify the image among citizens, and guide them to official investment channels that are subject to state control, to protect them from exposure to fraud and fraud.

Identification operations

A group of major central banks, including the US Federal Reserve, the Bank of England, the Bank for International Settlements, the European Central Bank, the Swiss National Bank, and the Bank of Japan, have set out to define what a potential digital currency would look like to help catch up with China’s pioneering role and outperform its projects. Especially on the model of the “Libra” currency of Facebook.

Central banks and the Bank for International Settlements said, “The basic features should include durability and availability at a low or no cost, appropriate standards, a clear legislative framework, and an appropriate role for the private sector.”

Central banks began closely examining digital currencies after Facebook announced last year its yet-to-be-launched currency, Libra, which would be backed by a mix of major currencies and government debt. Since then, the entity behind Libra has modified its plans and is now hoping to launch several “stable currencies” backed by single currencies.

The Bank for International Settlements pointed out that the currently deferred Facebook cryptocurrency, Libra, was like a “flash” that raised the alarm bell with the central banks in the world that rushed to search more seriously to enter the world of digital currencies, but despite this it does not believe in the disappearance of liquid money. .

Chinese test

In turn, China is already testing a digital yuan, while the People’s Bank of China said in previous statements, “It will boost the spread of the yuan in a world of currencies dominated by the dollar.”

China had set plans to conduct what it described as more tests for its digital currency initiatives, as with the increasing digital transformation of the global economy, many governments realize that countries that will harness advanced financial technologies will achieve huge future gains, and emerging financial technology, specifically digital currencies, will play a role. Important in the future economy.

If the Chinese digital currency is successful, it is expected that the 2022 Winter Games will be used to promote the new currency, and the experience of that currency is part of a wide range of initiatives launched by China, to stimulate innovation and encourage openness in the services sector.

The coin puzzle

The digital currency arose away from the authority of governments coinciding with the global financial crisis, and the first inventor of it is still a mystery and has a pseudonym is Satoshi Nakamoto, and many countries have recognized this currency, which began its launch in 2009, and the first purchase was made in 2010 at a price of 25 cents to reach the beginning of this year to More than 41 thousand dollars with expectations of reaching 100,000 dollars during the next few years, in conjunction with the increase in the number of companies around the world that accept Bitcoin payments to more than 130 thousand companies besides the traditional payment, led by Lamborghini and BMW with expectations of a higher price. The most famous cryptocurrency in the world is “Bitcoin”, to 100 thousand dollars.





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