ARIF EFENDI explains the reasons why CRYPTO INVESTMENTS ARE LEADING THE MARKET
In the early months of 2022, the stock market saw an massive drop in the value of stocks as well as other risk assets. Arif Eidi says this was caused by the rise in inflation, concerns about an increasing interest rate, and tensions between Ukraine and Russia. In an unstable economy, investors must diversify their portfolios. This 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 this allows for payments to be made all over the world, and without the need to carry and exchange cash.
Cryptocurrency transactions are protected through a method known as cryptography. This means that it is impossible for users, as per Arif Efendi to make a double-spend.
The digital currency comes with one of the most unique features that is that it's not issued by a central authority. Therefore, it is free of government interference. You can mine the currency or buy it from an exchange or a broker.
Ripple, Ethereum (Litecoin), Bitcoin and Ethereum are only a few most popular cryptocurrency. Each coin has its own advantages.
The cryptocurrency can be utilized to invest. Digital coins are well-liked by investors who wish to earn profits. Investors purchase and keep them for a limited or longer period, and then take them back when their value rises. https://www.imdb.com/title/tt0254001/characters/nm0022342 While some countries have restrictions on crypto, El Salvador became one of the first nations to allow Bitcoin.
Arif Efendi on Printed Currencies versus Cryptocurrencies
Fiat and printed currency, as well as cryptocurrency facilitate payment. But they differ. Arif Efendi explains some of the differences.
Regulation
Because fiat currencies are issued and regulated by the central bank, they can be utilized as legal tender. They are legal to use as tender. They are subject to government policies over time.
https://www.researchgate.net/profile/M-Efendi Cryptocurrencies, or digital assets decentralized they are also referred to as cryptocurrency. Since they are digital assets, they can be used without the approval from the authorities. Some countries oppose crypto due to the risk that it could be used to finance money laundering, or for other criminal operations.
Form of Exchange
The fiat currency can be transformed into physical or electronic form However, cryptocurrency can only be purchased in digital form. This is because cryptocurrency is embedded into the form of a set of codes.
Storage Method
Fiat currencies can be kept in home safes and banks or in fiat wallets. Cryptocurrencies can be stored in digital wallets. Fiat wallets are also used to convert government-issued currency into digital assets.
Benefits of Cryptocurrencies Over Printed Currencies
There are numerous advantages to cryptocurrency over printed currencies. Arif Efendi mentioned that they contain the following advantages:
Decentralized System
Crypto is based on an uncentralized system. No one is able to control or regulate the value or circulation. Each transaction is recorded on a ledger just as banks record transactions. The ledger does not contain personal data. This stops fraud and data breaches.
https://www.thelondoneconomic.com/lifestyle/my-business/rethinking-hospitality-navigating-the-post-covid-era-with-arif-efendi-351510/ Serves As A Hedge
You can protect yourself against inflation by investing in digital assets such as Bitcoin. Inflation implies that more money will be available and more expensive products will be available.
Bitcoin is designed to be rare regardless of the changes in the world economy. Arif Efendi It will be rare, even though thousands of dollars can be used to purchase them. And there is a high possibility that the coins appreciate in value.
Arif EfendiArif Efendi Payments across Borders
You can send money in a matter of minutes to anyone, anywhere using cryptocurrency. It's easy to transfer money, and there aren't fees for transactions.
It could take several weeks or days for printed currency to be delivered to the person who needs it. And the fees for such transactions are exorbitant. In certain situations, your transaction might be refused due to tension between the nations, sanctions or regulations.
The Risks of Using Cryptocurrencies
According to Arif Efendi, there are risks associated the use of cryptocurrency.
Extreme Volatility
Cryptocurrency is volatile. It is possible to build an enormous amount of money in just one month, only to go through it all quickly.
Inability to earn a return on Investment
Investors of older age and advertisers believe that novices can make high-quality gains in just a few hours. https://www.youtube.com/channel/UC88wbcqStE-yuh9ZGXgwTcw/videos But consistent trading and risk management are key to maximizing your profits.
Account Tracking
Cryptocurrency transactions are encrypted with codes but leave digital footprints. The FBI is able to read and monitor accounts of regular people.
Conclusion
Arif Efendi talks about cryptocurrency as a type of digital asset that you can use to protect transactions. You can also consider investing in cryptocurrency to diversify you portfolio. This article discusses the differences between digital currencies and printed ones. It also shared the benefits of crypto over paper money.
Arif Efendi warns that cryptocurrency has its own risks, just as other investments. He suggests that investors seek advice from a professional financial advisor before investing.