Despite the “happy news”, dramatic changes are hitting digital currencies


After a period of decline and collapse in the cryptocurrency market last May, the first days of June witnessed dramatic changes, coinciding with a number of happy news that returned the green arrows to the indicators to follow the movement of cryptocurrencies.

According to the CoinMarketCap website, which specializes in analyzing digital currencies, the last seven days, until noon on Sunday, June 6, witnessed a significant increase in the growth of most of the famous digital currencies; The number of cryptocurrencies in circulation reached 10,296, with a total market capitalization of $1.645 trillion.

The “Bitcoin” currency rose by about 1.5 percent, the “Ethereum” currency rose by about 13 percent, the “Binance” currency rose by nearly 20 percent, while the “Dogecoin” rose by a value that exceeded the 20 percent threshold.

This recent and sudden rise was prompted by a number of reasons and factors, which experts and economic analysts monitored for the “Sky News Arabia” website.

Google and Apple

One of the news that drove the rise of cryptocurrency, Coinbase announced, last Tuesday, a card that enables whitelisted users to use cryptocurrency to pay on Apple Pay and Google Pay while earning up to 4 percent of the amount of income .

In this regard, economist Ahmed Moati says that the Coinbase platform is one of the largest digital currency trading platforms in the world, and it is listed on the American Stock Exchange, noting that the news of allowing the platform’s customers to buy from Google and Apple is positive news for those who work in the digital currency market.

But Maati points out to Sky News Arabia that this agreement between Coinbase and the two tech giants is not considered recognition of cryptocurrencies, noting that the transactions between Coinbase, Google and Apple will be in US dollars, meaning that the customer makes the purchase in cryptocurrency through Coinbase Then the platform says to convert the value of the currency into US dollars and pay to “Google” and “Apple”.

And he added, “This news would have made a fundamental difference if Coinbase would pay with cryptocurrencies, but because it pays in dollars, the impact is limited.”

Elon Musk

The economist adds that there are other factors that have driven the recent rise of cryptocurrencies, such as Elon Musk’s post about Dogecoin; His blog included a positive reference to Dogecoin, which boosted its market value.

Also among the factors that supported the Dogecoin currency was its availability by the “Coinbase” platform last Thursday, which opens up a wider scope for it to trade, according to Maati.

It also points out that an important factor that cannot be overlooked is the listing of the Bitcoin Fund under the ticker symbol BTCE on the AQUES stock exchanges in London and Paris beginning on June 7.

The economist concludes his speech to “Sky News Arabia” by saying: “These factors have certainly helped the digital currencies to rise over the past days, but at the same time they have not fully recovered since Bitcoin crossed the threshold of 60 thousand dollars and then reached about 35 thousand dollars. Stressing that the rise in the market value of all currencies did not exceed the 2 percent barrier recently.

get-rich-quick culture

For his part, economic researcher Mohamed Abdel Rahim believes that the cryptocurrency market is very volatile, as there are no clear criteria for this market, there is no scientific standard for its rise and fall, as it is a market affected by news only.

Abdel Rahim adds that the natural context for currency trading is for governments to issue them, and to be an acceptable medium for circulation among the public, and therefore they are traded on this basis; Pointing out that it is not a currency in the conventional sense, and a country’s economy cannot be built on it.

The economic researcher stresses the need to be wary of dealing with this type of currency, especially as it is criminalized by most central banks in the world, attributing the reason why some rush to invest in this area to the desire to get rich quickly.

Abdel Rahim concluded, “Many young people have a culture of getting rich quick, which is a negative culture, especially since we live in developing countries that need hard work for economic advancement.”

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