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Bitcoin: an economic bubble or a digital revolution

Abdelrhman

Bitcoin: an economic bubble or a digital revolution? 


Bitcoin: an economic bubble or a digital revolution? You will find in this topic .. an introduction The blockchain story Ice mountain Explosive bubble Security concerns an introduction On May 2, 2016, Australian businessman Craig Wright came out on BBC and the pages of the Economist and GQ magazines, declaring that he was the inventor of the Bitcoin digital currency, whose appearance has long been associated with a kinetic name. Its creator called it "Satoshi Nakamoto". At the time, the world thought that the identity of the Bitcoin inventor became known, especially since Wright presented what he claimed to be the “technical evidence” that confirms his allegations, and even signed “live” emails using cryptographic keys he said he used to send 10 bitcoins to the crypto expert. Hale Finney "in January 2009 as the first Bitcoin transaction, but many quickly questioned Wright's claims, back to square one, and the inventor of that famous digital coin remains unknown. The only truth is that Satoshi Nakamoto, whether it is Wright himself or someone else who has lived life in the shadows, or even if he is an economic institution or entity, may never have imagined that the technology he invented in 2008 and caused the existence of Bitcoin "It will evolve over 9 years, to exceed the $ 700 billion crypto market. The blockchain story In 2008, Nakamoto published a paper explaining the "blockchain" technique, how it works, and how it will change the mechanism of physical transactions around the world. In 2009, the same person launched Bitcoin, the first real app based on his blockchain technology. Blockchain technology is based on the idea of ​​decentralization, as it represents a participatory and decentralized digital notebook, used in storing and storing digital transactions such as transactions and financial transfers, without the possibility of making any adjustments to the information that was stored, which reduces the possibility of fraud or fraud, or in other words "A common registry that stores information in a multiple way between the parties concerned (linked to an information network) without the need for a central authority to control the conduct of financial transactions, such as central banks, for example." "Bitcoin" is obtained using "Visa Card" and "Master Card", through popular international sites such as "Indacoin", which has the feature of using the Arabic language, and "paxful", which allows the use of multiple methods of payment, such as "transfers." Bank cards and gift cards from "Amazon, iTunes" and "Western Union", in addition to the "Coinmama" website. Ice mountain "The blockchain is a snow mountain that is still hidden under the water, and only Bitcoin appears on the surface," Tamer Ahmed - an expert on blockchain and entrepreneurship - tells "for information", stressing that we are waiting for a real technological revolution, whose idea is based on Decentralization and distribution of roles among multiple people who trust in conducting transactions among themselves through this technology, which leads to ending the role of brokers in dealings, such as banks, insurance companies, stock trading companies and brokerage clients, according to his description. Ahmed notes that using Bitcoin at present is an investment more than a trading currency, which causes its currency to constantly fluctuate up and down, according to the policy of supply and demand. The total number of "Bitcoin" around the world is 21 million currencies, and its value varies in relation to the value of other currencies from day to day. For example, the value of Bitcoin reached $ 13203.49 at the time of writing the report, and dealing with it is not traceable, meaning that the identity of the seller and the buyer cannot be known, which gives Its financial operations are strictly confidential. In short, it is a cryptocurrency. Explosive bubble Bitcoin is obtained, sold and used for purchases and sales via the Internet, and differs from traditional currencies in that it is not printed on paper or coined on metal, and more that it can be bought and sold using traditional funds, as it has no specific geographical centers present To buy it, but rather to buy it through specific sites on the Internet. What is more, entering into her world is not a complicated process, and it only takes 15 minutes, according to what the sites concerned to buy and sell indicate, the person only needs to create an electronic wallet through those sites, and write his credit card number, phone, and date of birth, after which he will receive a message on the phone Mobile, includes a four-digit code, to make the whole financial world "the king of his oath." But some specialists in the business market see that "Bitcoin" is only a bubble, which will explode soon like the real estate market bubble that caused the "mortgage" crisis and led to the collapse of the "money market" in 2008, while others see that digital currencies represent an evolution Makes sense to the methods of financial transactions, and that there is no longer a possibility of a bubble; Because many companies and institutions recognize them and accept Bitcoin as a currency in exchange for their services and products, such as Microsoft Corporation, Kentucky Restaurants in Canada, and many other companies. Security concerns At the same time, there are global warnings and fears against cryptocurrencies, because their transactions cannot be tracked, transforming them into a major currency for Dark web transactions or what is known as the “dark internet” and financing terrorist operations. In mid-December, the US Department of Justice announced the trial of a 27-year-old American woman, "Zobia Chanas," for accusing her of converting more than $ 85,000 in digital currency to ISIS. Also, US Treasury Secretary Stephen Mnuchin, during his recent participation in the Washington Economic Club conference, stated that the US administration is focusing on tracking digital currency activities so as not to convert to another version of "Swiss anonymous bank accounts", according to his description. Muhammad Abdul Basit - Director of Cybersecurity and Development of Security Projects at the company "Security" - that caution must be exercised when conducting the transactions of this work through trading platforms, explaining that "their trading information is stored in the blockchain rings, which are confidential and encrypted information, it is not possible to see On the identity of their owners, as for trading platforms, it is possible to track transactions and their parties, such as the identity of the seller and the buyer and the value of the trading process, and this depends on the security system of each platform and the extent of its ability to maintain the data of traders on it. " "There are many programs that protect crypto devices," AdBlock Plus, "Nokwins" and "Miner Blocker" block the appearance of annoying ads, and also prevent anyone from using their browsers, "Abdel Basset told" For Science. "


You will find in this topic ..

  1. an introduction
  2. The blockchain story
  3. Ice mountain
  4. Explosive bubble
  5. Security concerns 

an introduction

  • On May 2, 2016, Australian businessman Craig Wright came out on BBC and the pages of the Economist and GQ magazines, declaring that he was the inventor of the Bitcoin digital currency, whose appearance has long been associated with a kinetic name. Its creator called it "Satoshi Nakamoto". 

  • At the time, the world thought that the identity of the Bitcoin inventor became known, especially since Wright presented what he claimed to be the “technical evidence” that confirms his allegations, and even signed “live” emails using cryptographic keys he said he used to send 10 bitcoins to the crypto expert. Hale Finney "in January 2009 as the first Bitcoin transaction, but many quickly questioned Wright's claims, back to square one, and the inventor of that famous digital coin remains unknown. 

  • The only truth is that Satoshi Nakamoto, whether it is Wright himself or someone else who has lived life in the shadows, or even if he is an economic institution or entity, may never have imagined that the technology he invented in 2008 and caused the existence of Bitcoin "It will evolve over 9 years, to exceed the $ 700 billion crypto market. 

The blockchain story 

In 2008, Nakamoto published a paper explaining the "blockchain" technique, how it works, and how it will change the mechanism of physical transactions around the world. 

  • In 2009, the same person launched Bitcoin, the first real app based on his blockchain technology. Blockchain technology is based on the idea of ​​decentralization, as it represents a participatory and decentralized digital notebook, used in storing and storing digital transactions such as transactions and financial transfers, without the possibility of making any adjustments to the information that was stored, which reduces the possibility of fraud or fraud, or in other words "A common registry that stores information in a multiple way between the parties concerned (linked to an information network) without the need for a central authority to control the conduct of financial transactions, such as central banks, for example." 

  • "Bitcoin" is obtained using "Visa Card" and "Master Card", through popular international sites such as "Indacoin", which has the feature of using the Arabic language, and "paxful", which allows the use of multiple methods of payment, such as "transfers." Bank cards and gift cards from "Amazon, iTunes" and "Western Union", in addition to the "Coinmama" website. 

Ice mountain 

  • "The blockchain is a snow mountain that is still hidden under the water, and only Bitcoin appears on the surface," Tamer Ahmed - an expert on blockchain and entrepreneurship - tells "for information", stressing that we are waiting for a real technological revolution, whose idea is based on Decentralization and distribution of roles among multiple people who trust in conducting transactions among themselves through this technology, which leads to ending the role of brokers in dealings, such as banks, insurance companies, stock trading companies and brokerage clients, according to his description. 

  • Ahmed notes that using Bitcoin at present is an investment more than a trading currency, which causes its currency to constantly fluctuate up and down, according to the policy of supply and demand. 

  • The total number of "Bitcoin" around the world is 21 million currencies, and its value varies in relation to the value of other currencies from day to day. For example, the value of Bitcoin reached $ 13203.49 at the time of writing the report, and dealing with it is not traceable, meaning that the identity of the seller and the buyer cannot be known, which gives Its financial operations are strictly confidential. In short, it is a cryptocurrency. 

Explosive bubble 

  • Bitcoin is obtained, sold and used for purchases and sales via the Internet, and differs from traditional currencies in that it is not printed on paper or coined on metal, and more that it can be bought and sold using traditional funds, as it has no specific geographical centers present To buy it, but rather to buy it through specific sites on the Internet. 

  • What is more, entering into her world is not a complicated process, and it only takes 15 minutes, according to what the sites concerned to buy and sell indicate, the person only needs to create an electronic wallet through those sites, and write his credit card number, phone, and date of birth, after which he will receive a message on the phone Mobile, includes a four-digit code, to make the whole financial world "the king of his oath." 

  • But some specialists in the business market see that "Bitcoin" is only a bubble, which will explode soon like the real estate market bubble that caused the "mortgage" crisis and led to the collapse of the "money market" in 2008, while others see that digital currencies represent an evolution Makes sense to the methods of financial transactions, and that there is no longer a possibility of a bubble; Because many companies and institutions recognize them and accept Bitcoin as a currency in exchange for their services and products, such as Microsoft Corporation, Kentucky Restaurants in Canada, and many other companies. 

Security concerns 

  • At the same time, there are global warnings and fears against cryptocurrencies, because their transactions cannot be tracked, transforming them into a major currency for Dark web transactions or what is known as the “dark internet” and financing terrorist operations. 

  • In mid-December, the US Department of Justice announced the trial of a 27-year-old American woman, "Zobia Chanas," for accusing her of converting more than $ 85,000 in digital currency to ISIS. 

  • Also, US Treasury Secretary Stephen Mnuchin, during his recent participation in the Washington Economic Club conference, stated that the US administration is focusing on tracking digital currency activities so as not to convert to another version of "Swiss anonymous bank accounts", according to his description. 

  • Muhammad Abdul Basit - Director of Cybersecurity and Development of Security Projects at the company "Security" - that caution must be exercised when conducting the transactions of this work through trading platforms, explaining that "their trading information is stored in the blockchain rings, which are confidential and encrypted information, it is not possible to see On the identity of their owners, as for trading platforms, it is possible to track transactions and their parties, such as the identity of the seller and the buyer and the value of the trading process, and this depends on the security system of each platform and the extent of its ability to maintain the data of traders on it. " 

  • "There are many programs that protect crypto devices," AdBlock Plus, "Nokwins" and "Miner Blocker" block the appearance of annoying ads, and also prevent anyone from using their browsers, "Abdel Basset told" For Science. "



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