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The stock market experienced a large sell-off of stocks and other risk assets in the beginning of 2022. Arif Elfendi argues that this was due to rising inflation, anticipations of an rise in interest rates, and tensions between Russia, Ukraine, and other risk assets. In an unstable economic environment, investors need to diversify their portfolios, and that is where investing in crypto comes in. Is Cryptocurrency a Currency or an Investment? Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Efendi believes that this will allow the payment of money around the world, without the need to transport and change cash. The process of cryptography secures transactions using cryptocurrency. This prevents users, as per Arif Efendi to make a double-spend. One of the striking aspects of digital currency is that it doesn't have an issuer central to it. This means it is not subject to government interference. You can make money from the currency or purchase it through an exchange or broker. Ripple, Ethereum (Litecoin), Bitcoin and Ethereum are only a few most popular cryptocurrency. Each coin has its use. Beyond being a transaction currency It also serves as a means of investment. A lot of people who are looking to invest in digital coins are trading them to earn profits. Investors may buy digital coins, keep for a period of time and then sell them in the event that their value rises. While some countries have restrictions on crypto, El Salvador became one of the first countries to allow Bitcoin. Arif Efendi on Printed Currencies versus Cryptocurrencies Although cryptocurrencies and fiat currency are both utilized for payment facilitation however, they don't work in the same manner. Arif Efendi will discuss below some of the distinctions. Regulation Since fiat currencies are issued by the government The central bank is responsible for them. They are also regarded as legal tender. Their value is affected by government policies. They are digital assets that are not centralized. https://dergipark.org.tr/tr/pub/neuifd/issue/19718/210759 They are not subject to the control of the government. Some countries oppose crypto due to the possibility that it could be used for money laundering or other illegal actions. Form of exchange Fift currency can be exchanged electronically or in physical forms. However, it can only be exchanged electronically. This is due to the fact that cryptocurrency is embedded into the form of a set of codes. Storage Method Fiat currencies can be stored in safes in banks, at home, or even in fiat wallets. Cryptocurrencies are stored in crypto wallets. Fiat wallets can also be used to convert government-issued currencies into digital assets. Advantages of Cryptocurrencies versus Print Currencies Cryptocurrency is a great alternative to printing currency. Arif Efendi has stated that the following benefits are available: Decentralized System Crypto is an uncontrolled system. It is not possible to regulate its circulation or value. Each transaction is recorded on an account just like banks record transactions. https://www.newsanyway.com/2021/10/18/arif-efendi-donates-200000-to-norwich-university-as-a-testament-to-its-impact-on-his-life/ However, the ledger does not contain any personal information. This helps prevent the risk of data breaches and fraud. Serves as an hedge Digital assets such as Bitcoin can be used to hedge against inflation. https://thelibertarianrepublic.com/arif-efendi-why-cryptocurrency-here-to-stay/ Inflation is when there will be more money. However, it will also mean that items with less value will cost more. Bitcoin is designed so that it remains in high demand regardless of the state of the economy. https://picryl.com/topics/bakkal+ahmed+arif+efendi You will therefore be able buy a few coins for thousands of dollars. Additionally, there is a good chance that coins will appreciate in value. Payments across Borders With cryptocurrency, it is possible to send money within minutes to countries that are not in the cryptocurrency network. There are no transaction costs and it is very easy. It can take several weeks for the currency to reach its destination. The fees associated with such transactions are expensive. Some transactions will be rejected because of tensions between different countries, laws, or sanctions. The Risks of Using Cryptocurrencies Arif Elfendi warns that cryptocurrency could present risks. Extreme Volatility It is extremely volatile. You can earn a lot in a short period of time, and then lose it all within a matter of seconds. Refusal to Earn Returns on the investment Investors who are older and more prominent appear to suggest that novice investors are able to earn high returns immediately. It is possible to earn less from your investments if there has been consistent trading over the course of time and you've managed your risks well. Account Monitoring Even though crypto transactions are secured with codes they still leave digital tracks. The FBI is able to decode the codes and monitor the accounts of everyday citizens. Conclusion Arif Efendi discusses cryptocurrency as a type of digital currency that you can use for secure transactions. You can also consider investing in cryptocurrency to diversify your portfolio. This article explains the differences between cryptocurrencies and printed currencies. It also explained the advantages of crypto currency over paper currency. As with other investments, Arif Efendi stresses that cryptocurrency is not without risk. https://swordfish.ai/d/p/efendi-arif-id716772474 https://www.imdb.com/title/tt0254001/characters/nm0022342 He advises investors to consult an expert advisor prior to investing.
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