What are digital currencies?
Cryptocurrency is a cryptocurrency that enables you to purchase goods and services online. It uses a digital online ledger with strong encryption to ensure and protect online financial transactions. The growing interest in these virtual currencies comes as a result of what is known as "digital currency trading", in which these currencies are bought and sold to achieve real financial profits from them. Browse the Forsa website
What is the difference between cryptocurrency and blockchain When we hear the word “digital currencies” we may immediately think of the word “blockchain”, as many think that both terms express the same thing, but this is not true. As we have already explained above, digital currencies are cryptocurrencies that are used to purchase goods and services, while Blockchain is the technology or technology behind it. It is a decentralized technology that incorporates encrypted records spread across many high-speed and capable computers, which manage all transactions made between clients within this network.
Types of digital currencies and their prices Some believe that there is only one type of digital currency, which is Bitcoin. However, that is not true. According to CoinMarketCap.com, there are more than 6,700 digital currencies that are publicly traded and dealt with, and the cryptocurrency market is still witnessing an increasing growth every day. At a time when Bitcoin is the most popular and most valuable digital currency, there are many companies that have started issuing their own digital currency, which you can use to purchase services and products from this particular company. It's like those points you earn when you buy merchandise from a certain site, which you can later exchange for real money that you use to buy products from the same site (and not any other site). Here is a list of the most famous types of digital currencies and their prices, where the bitcoin is topping the list and its price or market value is approximately $969 billion. Bitcoin: It has a market capitalization of $969.9 billion. Ethereum: With a market capitalization of $222.3 billion. Tether: $33.1 billion. Binance Coin: $30.5 billion. Cardano: $28.3 billion. Polkadot: $28.1 billion. XRP: $24.4 billion. Litecoin: $15 billion. Chainlink: It is worth $13.3 billion. Bitcoin Cash: $13.1 billion worth
The importance and advantages of digital currencies Digital currencies have gained the attention and support of many people around the world for many reasons, including the following: 1- A potential future currency Many supporters of digital currencies believe that the latter, especially Bitcoin, will become the official currency in the future, and for this reason they are quick to buy it Now before it increases in value and price. But is this really what will happen? We will answer that in the next part about investing in cryptocurrencies! 2- The decentralization feature of the digital currency is not linked to any central authority or entity such as banks, for example, and therefore digital financial transactions in this case do not need an intermediary in order to carry out them, which eliminates transaction fees, which is something that many supporters of encrypted digital currencies like.
Investing in digital currencies
Perhaps you are now wondering about the topic of cryptocurrency trading, and perhaps you are thinking to yourself: Is investing in cryptocurrencies a wise choice? In fact, although the price of cryptocurrencies may rise in the future, these investors see that this is nothing more than just assumptions. Why? This is because digital currencies, like real currencies, do not create any cash, and in order to make a profit from it, you must find someone who is willing to pay an amount greater than what you paid to buy this digital currency. Therefore, investing in digital currencies is different from investing in a real, studied project whose value increases over time and with the increase in the value of cash flow and the profits it achieves. Not only that, many experts believe that investing in digital currencies such as Bitcoin is not completely safe, but some prominent voices in the investment community have advised potential investors to stay away from it. For example, legendary investor Warren Buffett compared bitcoin to paper checks: “It's a very effective way to transfer money and you can do it anonymously and so on. Check is a way to transfer money too. But are checks really worth it? All that money for her just because she can transfer money?"
Some may ask again here: But isn't Bitcoin a future currency?! It is true that this possibility exists, but it is worth noting that for a currency to be adopted as the currency of the future, it must be stable. Stability is far from being the case with Bitcoin and other digital currencies. For example, the price of Bitcoin (trading price) was about $20,000 at the end of December 2017, but its value collapsed to about $3,200 after only one year, and then it rose again to unprecedented levels in 2020. Due to the great instability This is in the prices of Bitcoin and digital currencies in general, it is unlikely that it will be spent and used at the present time, because whoever buys this currency will keep it without spending it in the hope of increasing its value to multiply after a year or less. All of the above factors make investing and trading cryptocurrency a bad choice, for the time being at least.
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