In the early months of 2022, there was a significant drop in the value of the stock market as well as risk assets. Arif Efendi says that this was due to the increasing inflation rate, expectations of a hike in interest rates, and the tension between Russia and Ukraine. Arif Efendi In an uncertain economic environment, investors need to diversify their portfolios. This is the place where crypto investing can help.
Is Cryptocurrency a Currency?
Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Efendi believes that digital wallets enable you to pay international transactions without the need for physical cash.
The cryptography technique is used to ensure the security of transactions made using cryptocurrency. It is difficult to duplicate spend or make counterfeits, according to Arif Efendi.
It is unique in that it is not issued or controlled by any central authority. The currency is free of government interference. It is possible to purchase or mine currency from an exchange.
Ripple, Ethereum, Litecoin and Bitcoin are among the most popular cryptocurrency. Each coin has its advantages.
Bitcoin is more than a digital currency. It is also utilized to invest. Many people are interested and are able to trade digital currencies to earn profits. Investors purchase and hold them for a short or long periodof time, then sell whenever prices rise. Although cryptocurrency is not legal in every country, El Salvador became the first country to allow Bitcoin.
Arif Efendi on Printed Currencies versus Cryptocurrencies
Fiat currencies or printed currency allow for payments. However, they aren't two different things. Arif Efendi explains some of the distinctions.
Regulation
Fiat currencies are issued by governments. The central bank regulates them. They are also regarded as legal tender. Arif EfendiArif Efendi Their value could be affected by government policies.
The digital assets that are not centralized they are also referred to as cryptocurrencies. Because they are decentralized digital assets, they can be used with or without the permission from the authorities. https://www.sosyalarastirmalar.com/abstract/risala-fi-hased-work-of-kadizade-mehmed-arif-efendi-and-its-analysis-of-contents-73091.html Some countries do not support the usage of crypto because they assume that it is used for money laundering or other illicit operations.
Form of Exchange
The ability to exchange fiat currencies in both electronic and physical forms however cryptocurrency can only be exchanged in digital form. Because it is embedded with a series codes that is not exchangeable in physical or electronic form.
Storage Method
Fiat currency is stored in home safes, banks, or fiat wallets. The cryptocurrency should be stored in digital wallets. Fiat wallets are also able to convert government-issued currency into digital assets.
Benefits of cryptocurrencies over printed Currencies
Cryptocurrency can be a fantastic alternative to printing currency. Arif Efendi mentioned that they include the following:
Decentralized System
Cryptography is decentralized. It is impossible to regulate its circulation or value. Since banks track transactions, each transaction is also documented in the ledger. The ledger, however, doesn't contain any personal data. This helps prevent data loss and fraud.
It serves as a hedge
You can hedge against the effects of inflation using digital assets like Bitcoin. Inflation means that there is more money, but it will also mean that items with less value will be more expensive.
Bitcoin is meant to remain unaffordable regardless of economic climate. The coins will remain rare, even though thousands of dollars can be used to purchase them. There is also a good chance that the coins will appreciate.
Payments across Borders
You can transfer money in a matter of seconds to anyone in the world using cryptocurrency. Transaction fees are extremely minimal and the whole procedure is easy.
Print currency may take several days to reach the recipient. Transaction fees are also exorbitant. In certain instances, your transaction might be rejected because of tension between countries, sanctions , and rules.
There are risks when the use of cryptocurrencies
Arif Elfendi warns that cryptocurrency could be a risk.
Extreme Volatility
Cryptocurrency is unstable. It is possible to accumulate a large amount of money in a month or less, and then be wiped out in the blink of an eye.
https://www.orientalartauctions.com/object/art3003919-an-ottoman-prayer-book-by-mehmed-arif-efendi-1266-ah-1849-ad Don't put off getting results from your investment
Beginners are frequently fooled by advertising and investors that they can immediately begin to see high returns. In reality, you may not earn so much on your investments until after a period of consistent trading and the proper management of risk.
Account tracking
While cryptocurrency transactions are encrypted digitally, they leave digital tracks. The FBI is able to decipher these codes and track accounts of everyday citizens.
Conclusion
Arif Efendi talks about cryptocurrency as a type of digital currency that you can use to make secure transactions. You can also use it to diversify your portfolio. This article explained the differences between crypto currencies and printed currency. It also discussed the benefits of crypto-money over paper currency.
Arif Efendi points out that cryptocurrency, just like any other investment, has its own risks. He recommends that people seek advice from a professional financial advisor before making a decision to invest.