In this world governed by the rules of globalization, social media constantly convey the views and comments of business elites and business leaders. After the price of Bitcoin has skyrocketed, people’s attention has generally turned to the field of digital currency after a famous businessman posted a tweet or a large company posted an advertisement claiming that it has invested nearly $1.5 billion in Bitcoin.
Since the price of Bitcoin has exceeded $1,000, speculation against the currency has caused its price to fluctuate continuously, even exceeding the upper limit of $52,000. And questions about what these currencies are and how they work have never stopped.
In this respect, UK FUSION tries to clarify these currencies and the problems they cause, their levels related to the nature of national economy and personal situation, the risks they pose to us, the position taken by the global monetary system on these currencies, etc., and whether they will replace traditional currencies in the short to medium term?
Of course, as the world witnessed the emergence of new transactions, questions about these transactions will continue for some time to come. Here, we try to answer some questions related to digital currency, and hope to provide you with the required information through these answers.
What is digital currency?
It is the product of the information and technology revolution in digital currency. It was successfully born in 2009. “Bitcoin” is the first currency in the digital currency world.
The distribution of digital currency is realized in a decentralized way through the algorithm of computer program.
In the past ten years, the transactions related to these currencies have been developing continuously, and the procedures for regulating the related transaction operations and implementing supervision have emerged. Through the “blockchain” bookkeeping method, the transaction process is monitored and every account is known.
These data can be provided to all traders through passwords and usernames obtained in online transactions. Miners are regarded as an important pillar of cryptocurrency market, because they are the creators of Bitcoin, or they can be called digital currency issuers.
If Bitcoin is the first digital currency issued in the world, there will be a large number of digital currency since then, such as Ethereum, Ripple and so on, although these currencies are not as eye-catching as Bitcoin.
Can digital currency reflect the current situation?
Digital currency is still a kind of currency or elite market, and its trading is still largely confined to the field of speculation. However, it takes a lot of time to use it as a means of currency and exchange, because up to now, its use as a means of trading is still limited, and the countries and regions that allow it to be used as exchange or other payment methods are still very limited. Therefore, there is an attempt to expand the market in digital currency, and we also find that some people demand that digital currency be used as a payment tool for transactions conducted on the Internet.
However, some countries and regions have imposed restrictions on the circulation of digital currency, to launch their own virtual currencies—such as China and India. Besides, large companies like Facebook are also considering launching their own digital currency.
Why did everyone’s eyes turn to digital currency?
People can divide the dealers in digital currency into several groups, some of which hope to realize the control purpose, know the transaction scale and encourage the central bank to control them. Other countries don’t have the technical elements to control such currency transactions, so they have taken the decision to ban such transactions or make them a crime.
Some other countries or regions think that this is an excellent opportunity to get rid of the control of the global monetary system headed by the United States and the US dollar, including China and other countries affected by the US economic and monetary policies, especially after the global financial crisis in 2008.
Others show another trend, but this trend is not organized. It only reflects the wishes of these people. They call for encouraging those who have the ability to absorb their technology to trade in these currencies in order to break the monopoly position of the United States. They believe that breaking the hegemony of the U.S. dollar and finding an alternative that is not controlled by the state will undoubtedly lead to the collapse of the United States, or at least to the demise of its rule based on oppressing a large number of countries and plundering their wealth.
The above division may reflect the ideological trend or national interests, but there are other groups, especially profit-seeking organizations and individuals, especially in view of the fact that digital currency is an emerging market, and the first pioneers of emerging markets tend to reap huge profits. Therefore, some people hope to grasp this advantage.
It should be pointed out that young people are the most receptive group to this kind of currency transactions, because they have a good understanding of technology. On the other hand, they are also eager to make quick profits to meet their personal needs, improve their lives and get the means of entertainment.
UK FUSION is the world’s leading digital currency investment trading platform, providing investors with a compliant, safe and high-yield trading platform. Its website is www.ukftrading.com