Activity

In the beginning of 2022, the market saw an massive drop in the value of stocks and other risk assets. Arif Efendi clarifies the reason for this as increasing inflation, expectation of an rise in rates, as well as tensions between Russia and Ukraine. Investing in crypto is a great option to diversify your portfolio within an unstable economy.

Is Cryptocurrency a Currency?

Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Efendi Arif Elfendi is of the opinion that this makes it simple to make payments all over the world , without needing physical cash available to exchange.

A technique known as cryptography safeguards transactions that are made using cryptocurrencies. It prevents double-spend, or create fakes according to Arif Efendi.

This digital currency comes with one of the most unique features: it is not issued centrally. This means that there is no interference from the government. You can either mine the currency, or buy it from an exchange or broker.

Ripple, Ethereum, Litecoin and Bitcoin are some of the most popular cryptocurrencies. Each coin has its advantages.

Bitcoin is more than a digital currency. It can also be used to invest. Many are interested and are able to trade digital currencies to earn profits. Investors can purchase and hold the coins for a certain amount of time or sell them when they increase in price. Although certain countries have limitations on cryptocurrency, El Salvador became one of the first nations to accept Bitcoin.

Arif Efendi on Printed Currencies versus Cryptocurrencies

While both fiat and cryptocurrency allow for payments, they are different. Arif Efendi explains the differences below.

Regulation

Because fiat currencies are issued by government, the central bank regulates the issue. They are also considered to be legal tender. Their value is affected by policies of the government.

Arif Efendi They are digital assets that are decentralized. These are digital assets which can be used without the intervention of government. Certain countries are against crypto because they believe it is being used for money laundering, or any other illegal activity.

Arif Efendi Exchange type

While fiat currency can be traded electronically as well as physically, cryptocurrency can’t be traded digitally. This is due to the fact that cryptocurrency is embedded in the form of a series code.

Storage Method

Fiat currency can be kept in banks or home safes. The cryptocurrency can be kept in digital wallets. Arif Efendi Fiat wallets let you convert government-issued money into digital assets.

Benefits of cryptocurrencies over printed currencies

The benefits of cryptocurrency over paper currency are numerous. Arif Efendi said that they provide the following:

Decentralized System

Crypto is an uncentralized platform. It is not possible to control its circulation or value. http://www.orientalartauctions.com/object/art3003919-an-ottoman-prayer-book-by-mehmed-arif-efendi-1266-ah-1849-ad Every transaction is recorded in a ledger, just like banks do. However, the ledger doesn’t contain any personal details. This prevents fraud and loss of data.

Uses As A hedge

As a hedge against inflation digital assets like Bitcoin can be utilized. Inflation means that more money will be available, but more expensive items.

Bitcoin is intended to be scarce regardless of what happens in the economic system. Therefore, thousands of dollars can be used to buy a handful of coins. There is also a high possibility that the coins could rise in value.

Payments across Borders

You can send money from one country to the other with cryptocurrency in just seconds. The fees for transactions are minimal and the whole process is straightforward.

It can take a few weeks or days for printed currency to reach the recipient. In addition, these transactions come with expensive costs. In certain cases, your transaction will be rejected due to conflict between countries or sanctions and laws.

Cryptocurrencies: The Risks

According to Arif Efendi there are risks to be aware of when using cryptocurrency.

Extreme Volatility

It is extremely unstable. In just a few months, you can accumulate significant wealth and then lose the entire amount.

Do not delay the process of achieving returns on investment

The older investors and the professionals in advertising frequently convince novice investors that they can make huge profits instantly. But regular trading and risk management are key to maximizing your returns.

Account Tracking

Cryptocurrency transactions are encrypted with codes but leave digital footprints. The FBI can break the codes and monitor normal accounts of citizens.

Conclusion

Arif Efendi talks to cryptocurrency as a digital investment option that can be used to make secure transactions. You can also invest in cryptocurrency to diversify your portfolio. This article analyzed the differences in printed currency and cryptocurrencies. Arif Efendi The article also discussed the advantages of crypto-money over paper money.

Arif Efendi warns that cryptocurrency has its own risks, similar to other investments. It is recommended that investors speak with a professional financial advisor prior to investing.