The financial crisis in America-
A severe financial crisis is the second worst economic crisis in the history, of America after the great depression in the thirties, it then moved from the US to other countries causing, an unprecedented global economic and financial chaos all over the world, the chief reason for that crisis was the greedy financial institutions and central banks, that facilitated over-borrowing without control, Nevertheless, a mysterious and exciting player was going to appear at that time and would change this whole global financial system later in the future.
History of digital currency exchange
- I would like to highlight an issue of significance, not all Arab countries allowed digital currency exchange so far, and for example, most of the Gulf countries allow it, while other countries such as Iraq, Egypt, and Algeria do not allow it anyway so please, pay attention to this matter of necessity.
- On August 18, 2008, the same year of the crisis, during this theatrical chaos a domain or website appeared quietly on the Internet with the address Bitcoin.org It was registered by an unknown person with an identity protected through the WhoisGuard service.
- No one knows who he/she is, nor what this site is precisely for as is the case all along the first 72 days, then on October 31 a crypto mailing list appeared on metzdowd.com announced by a person or group of people, no one knows, under the pseudonym "Satoshi Nakamoto", they acclaimed that they had worked on a new fully functional electronic Peer-to-Peer monetary system Through this system, a currency called Bitcoin will be.
- Traded/exchanged among individuals directly and privately, third parties are excluded as well as other central monitoring authorities, and with the announcement, a file containing all the details was published called the “White Paper”,
The Bitcoin Constitution and the date of its appearance:-
- This was the first appearance of the mysterious character of Satoshi Nakamoto on the Internet, And the first time the world knew about that new monetary system, as well as the entire process of currency production, exchange, and dealing, through the "white paper", a 12-year-old written guide.
- that revolutionized the global financial system, a revolution that is still going on and its effect is increasing non-stop The posts that were published under the name “Satoshi Nakamoto” in 2008 and 2009, explicitly stated that the reason for creating this digital monetary system was mainly to remove external intermediaries who had to be present to make money transfers Intermediaries, such as banks, credit card companies and others, are the system lords who make huge profits annually from transaction fees, unlike transactions in Bitcoin, which will be zero fees.
- If we take a look at the net revenues of Visa company last year for example, in 2021, revenues exceeded 24 billion dollars, an increase of 10% more than in 2020 Last August, the net revenues of the banking and investment services giant JPMorgan exceeded 121 billion dollars in 12 months Another reason for bitcoin's innovation was the problems caused by traditional currencies exchanging that are being controlled by central banks that are controlling the wealth of nations in favor of a limited class as a result Consequently, chaos or crises that occur in the monetary system due to financial institutions misconduct is borne almost entirely by consumers and taxpayers, as happened in 2008.
Central banks:-
Central banks can also waste individuals’ savings if they decide to print money in order to pay off their local debts for example. This in the long term leads to an increase in money circulation, thus the inflation rate rises, consequently, squandering the value of individuals’ savings by reducing their purchasing power. The inevitable end of this series is the deterioration of their living standards as a result.
Bitcoin as a potential alternative to traditional currencies:-
On the contrary, in the Bitcoin monetary system, as a possible future alternative to traditional currencies, There are no such problems and risks as there is no third party involved in the transactions and no central authority He possesses the tools by which individuals can become poor if these intermediaries misbehave This was a blip in the rise of Bitcoin, the world's first and most popular cryptocurrency It has the tools by which people can become poor if these intermediaries misbehave.
How Does Cryptocurrency Gain Value?
Cryptocurrency is the best thing in the digital world currently and has now been recognized as part of the advanced global monetary system. This system we describe as the money revolution. Cryptocurrency is a huge decentralized digital asset that can be exchanged between individuals without the need for the authority of central banks, and most of them are created through computation techniques referred to as 'mining'. The global legal currencies, such as the US dollar, the pound sterling, and the euro, are base currencies because they are issued by central banks; In contrast, digital currencies, such as cryptocurrencies such as Bitcoin and other cryptocurrencies, do not contain public confidence in the issuer. Accordingly, they determine the factors of their value.
My personal view through the volume of transactions in these digital currencies:-
I say that digital currencies are the best option at the present time, due to the confidentiality of transactions through them and the preservation of their high monetary value, in addition to the huge size of fees imposed by banks in the volume of monetary exchanges between individuals and each other, and digital currencies such as Bitcoin is the safe haven for the developed economy in At the present time, in the event of wars, massive economic revolutions, or the decline and rise of traditional currencies in the markets as a result of the sloping economy, this also leads to an expansion of the range between countries in the volume of advanced investment, because digital currencies retain their value, and their trading volume was small compared to traditional currencies, so digital currencies will In the future, it will be the best choice in terms of the volume of current economic, industrial and scientific exchanges.
