Digital currencies between a bright reality and an encrypted future

0
41


Digital currencies have gained momentum in recent times, to the point that many small and large investors have resorted to the emerging and bright currency market, as seen by its users, by pumping huge sums in anticipation of its promising future. The American company, Tesla, recently announced its investment of one and a half billion dollars. An American currency in Bitcoin, and its intention to accept the currency to obtain its products, which led to a historic rise in the price of Bitcoin that reached the ceiling of fifty thousand dollars.
For its part, the Canadian authorities announced their approval of the launch of the first Bitcoin investment fund on the stock exchange in the world, and the founder of Twitter, Jack Dorsey, announced his intention to establish an institution working to enable Bitcoin to become the approved internet currency.
But what are digital currencies or cryptocurrencies as some call them ?, The story of digital currencies began with the launch of the Bitcoin currency in 2009 by an unknown person called “Satoshi Nakamoto”, and its value at that time was not worth anything, as the price of bitcoin was at that time 0.001 dollars, and in February of 2011 the currency was valued at one dollar, and some economists expect that the price of bitcoin will rise to record levels that may reach one million dollars per bitcoin! As it has the same factors of scarcity, reliability and increasing demand, as is the case with gold, and accordingly, according to experts, bitcoin represents a safe store of wealth.
Faced with the success achieved by Bitcoin so far at least, many cryptocurrencies have been issued similar to Bitcoin and there are many platforms for trading these currencies, and the size of the digital currency market has recently exceeded the trillion dollar barrier! It is a huge and anticipated future between optimists and pessimists, as pessimists see this market that it is nothing but a bubble that will burst in our faces one day, and that it is a risky and insecure market due to the decentralization of digital currencies and their total dependence on technology, while optimists see that these factors constitute a source of strength for digital currencies. Thanks to this, it will be the currencies of the future, and their argument in that is that technologies, whether those on which digital currencies depend, or technology in their comprehensive form are nothing but a fait accompli on which our lives depend and upon which our future depends.
Cryptocurrencies are characterized by decentralization with the ability to transfer the currency from one party to another without the need for an intermediary between them, “such as banks or financial institutions” through the use of what is known as “blockchain”, a revolutionary technology that can be summarized as a decentralized series of records found in multiple computers around The world saves currency data and its associated operations and all variables on it, as it can be viewed by a large number of people without the ability to know the owner of the currency specifically, as this process provides great protection that is difficult and even impossible to hack or falsify.
There are two aspects to this technology, the first of which is that this mechanism represents a promising horizon on which many count to be harnessed and used in the future in documenting many matters from official contracts to private property, so that the guarantees for the properties are linked to this decentralized chain through the existence of something like a “general consensus” that recognizes the processes that take place. In this context, which is something that is outside the control of any central authority or state, the other side is the possibility of using electronic currencies and the privacy that blockchain technology provides for in terrorist financing and illegal activities, “which raises great concern to many From the official authorities around the world, “However, the reservation related to the criminal and illegal activity that will result from the use of electronic currencies cannot be a hindrance from looking at them more seriously, but rather it requires dealing with them rationally and objectively.
At the beginning of the emergence of the cryptocurrency, it was viewed with suspicion and caution, believing that it was just a currency based on illusion and would inevitably disappear, and that this view is still entrenched in many in our Arab world in particular, we find that the aforementioned currencies exceeded these concerns, and we can say that it has become a reality. It cannot be ignored, for a country like China, for example, dealt with digital currencies at first with caution and suspicion, then soon realized the future of these currencies, and now it is working on issuing its own digital currency, in order to avoid its positioning on the path of the future, in addition to that, many of Large financial companies such as PayPal, Visa, and MasterCard have worked to absorb digital currencies and include them within their financial operations, not to mention giant companies such as Apple and Google and others that have included these currencies within their activities and interest. There are indications that some countries invested in digital currencies without declaring this.
On the other hand, we cannot look at the digital currencies that sparked off the launch of the Bitcoin currency, superficially, and concede that its founder is an unknown person without questioning the existence of international and global financial institutions behind its creation, and digital currencies may be nothing but a new world order that copies the existing system and replaces it. Digital currencies will undoubtedly pave the way for globalization, which is essentially rooted in its most vivid form in our lived reality, and will transform the world from a small village connected to the decentralized Internet into a smaller village that transcends all forms of centralization, and the question here is the extent of the legitimacy of the concerns that envelop countries’ dealings with this phenomenon, and whether Countries can deal with this worrying reality by clashing with it, or is there a possibility to absorb it even though it works to decentralize the countries ’financial system and weaken the role of local and central banks by canceling the third mediator?
In any case, we cannot be certain about the future of digital currencies, and at the same time we should not consider the reality of these currencies as just a bubble that will inevitably end in a delinquent cyber attack, as the reality of digital currencies proves that they have surely surpassed this turning point, in contrast, the concerns of countries and governments about the spread should not be underestimated. Decentralized digital currencies, according to a study conducted by the American RAND Corporation, entitled “The implications of the virtual currency on national security: researching the possibility of publishing by a non-governmental actor.” This study concluded that the use of digital currencies by rebel organizations is facing a challenge at the time. The current situation may not be the best option to implement its activities, but it will be so in the future, and on the other hand comes an urgent question about the adequacy of the current mechanisms in facing the reality of digital currencies and whether this reality should be absorbed through the enactment of legal legislation, the development of regulatory mechanisms, its codification and recognition of its existence, and that states seek Until you assume an important position in this sweeping flood and not allow the opportunity to pass away, or is it sufficient to take a position of denial without putting in place clear mechanisms to adapt the legal status of those dealing in these currencies? And moving forward in dealing with caution and apprehension with the reality of these cryptocurrencies and mysterious?





LEAVE A REPLY

Please enter your comment!
Please enter your name here