Explain digital currencies
- Even though digital coins are not seen with your eyes and do not touch your hands; it has given rise to a digital economy worldwide; Many central banks around the world are even trying to link their national currencies to stable digital currencies, in an attempt to keep up with the evolution of online payments in a new economic era based on symbols and numbers on the computer screen.
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| What are digital currencies? |
- Digital currencies are numbers and symbols that you can find on a computer monitor or mobile phone. Each currency has its own symbol or sign, but it still has an impact on the global economy, especially with its wide boom in most parts of the world, at a time when the major investors and businessmen in the world, especially Elon Musk, who promoted it with an investment of up to 1.5 billion dollars in these currencies, considering that it is the fastest way to gain profits; Indeed, he recently announced that he could use cryptocurrencies to pay for his Tesla cars, yet many people ask the question: What are digital currencies?
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| What are digital currencies? |
- Also known as digital money, electronic money or electronic currencies, it consists of a type of currency that is available in digital form only and does not have a physical presence, such as monetary or coins; however, it has the same characteristics as other financial currencies, which are marked by spot transactions and borderless transfer of ownership; They can be used to purchase various goods and services; It has an electronically recorded balance of money on a card with a value stored on another device and circulated online. It can also have a central point of cash presentation that makes it a stable digital asset.
- There are some decentralized currencies and the money supply is controlled through various sources.
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| What are digital currencies? |
- A digital currency can also be defined as a form of currency or as a means of exchange of benefit that offers similar characteristics to a tangible material currency, but is numerical rather than tangible, and allows for spot transactions, buying, and selling like a tangible currency.
Definition of cryptocurrency
- The origins of digital currencies go back to 1990 when information technology was introduced. The electronic gold product was launched in 1996, until 2006, and Liberty Exchange started to establish the digital currency, which allows users to convert the dollar or euro into a digital currency, between the dollar and the euro, on the same site and allows for a 1% fee exchange; But the US government shut it down completely after accusations it used money laundering.
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| What are digital currencies? |
- In China - specifically, in 2005, a kind of commodity-based digital currency was introduced on the Tencent QQ platform through the Q coin, but accusations of destabilizing the official Chinese currency, the yuan, were also followed by speculation, and thus had no strong impact.
- In 2018, the new and modern circulation of digital currencies began with the formation, in 2009, of the world's most widely used digital currency and began to spread among countries.
- Although some believe digital currencies are just one type: bitcoin; According to CoinMarketCap.com, which specializes in digital currencies, more than 6,700 digital currencies are circulating on the Internet in various countries around the world. Many companies have started issuing their own digital currency, which can be used to purchase services and products for the company. However, there are still some types that are the most famous and most widely traded in the world:
Bitcoin BTC configuration
- It's a virtual currency that doesn't have a real physical presence but is the most widely traded currency in the world, even though it's used for cryptocurrencies and illegal transactions, and it saves money without a name so you can't tell who owns the currency or what information you have about it.
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| What are digital currencies? |
- The mechanism of bitcoin operations conceals the identity of the currency holder (the sender) and also the recipient of the funds (the consignee), and thus can be used in money laundering operations and illegal transactions. This makes it difficult for States to identify or regulate them by central financial agencies, as their movement, which is by the supply and demand policy, cannot be controlled.
- However, with the large number of countries that use this currency, Bitcoin, many countries have been forced to recognize it, and to deal with it officially, but in their own interests and under the supervision and control of the central financial agency.
Ethereum ETH
- Among the most famous digital currencies that attempt to compete with Bitcoin, it was created in 2015 and had no strong circulation until 2016 when 500 wealthy companies met to discuss and unify efforts to develop the technology network.
- This currency was supported to become a destination for digital currencies between the company and to accelerate decentralization in the global economy.
- Although it is volatile, it can be used as a financial asset for traders, as distinct from bitcoin, it allows users to run any program to access it through decentralized application and is not controlled by any single or centralized system; So it's a technological investment to match companies.
Tether USDT
- a digital currency that converts recognized currencies such as the dollar or the euro into a digital currency that follows a well.
-known protocol, Omni Layer, on the trading platform. Its first appearance is in 2014 and is based in Hong Kong.
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| What are digital currencies? |
- Each currency is backed by a single United States dollar, which means that the reserves of the United States dollar are equal to those of currencies, and are intended to combine digital currencies with fixed currencies such as the dollar.
Bennis Quinn-BNB Binance Coin
- It's a cryptocurrency used as a currency-to-currency intermediary, and it was founded in 2017, for a Chinese company called Beijie Technology in Hong Kong, which runs Binance Exchange, one of the world's most successful exchanges in leading well-known cryptocurrencies.
Dogqueen Dogecoin DOGE
- A cryptocurrency, founded in 2013, is a fast, cheap, and fun payment system that does not contain the costs involved in banking transactions, and it is essentially a modified version of the famous bitcoin.
- The Dogecoin coin started as a joke and was coded as a dog by the Sheba Innu family, and it was worth a fraction of a cent at the time of its launch, but in a short time, it gained props and had to purchase massively until it raised its value by 600%.
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| What are digital currencies? |
- It is characterized by its ease and ease in dealing with hard-to-reach currencies such as bitcoin. Investment in it does not require large capital, while expectations indicate that its price will increase further in the future.
- This is what made the famous businessman Elon Musk, owner of the Tesla Automobile Company, announce that his company will accept payment for some of its products in the digital Doguen currency.
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