The 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 considerable 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, led to a historical rise in the price of Bitcoin, which 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 world’s stock exchange. 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 named “Satoshi Nakamoto,” and its value at that time was not worth anything, as the price of bitcoin was at that time 0.001 dollars. 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, according to experts’ opinion, Bitcoin represents a safe store of wealth.
In the face of Bitcoin’s success so far, at least, many cryptocurrencies have been issued, similar to Bitcoin, and there are many platforms for trading these currencies. The size of the digital currency market has recently exceeded the trillion-dollar barrier! However, views still differ when evaluating this market. It is a vast and expected 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. In contrast, optimists see that these factors constitute a source of strength for digital currencies. Thanks to this, it will be the currencies of the future. They argue 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.
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.
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 international financial institutions behind its creation. 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. They will transform the world from a small village connected to the decentralized Internet into a smaller village that transcends all centralization forms.
The question here is the extent of the legitimacy of the concerns that envelop the countries’ dealings with this phenomenon, and whether Countries can deal with this worrying reality by clashing with it, or is there a possibility to accommodate 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?