The stock market was hit by the massive selling of stocks along with other risky assets in the beginning of 2022. Arif Efendi Arif Elfendi claims that the reason for this was rising inflation, anticipations of an increase in interest rates and tension between Russia, Ukraine, and other risk assets. A volatile economy means that investors must diversify their portfolios. This is where crypto investments come in.
Is Cryptocurrency an Investment or Currency?
Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Efendi is of the opinion that it makes it easier to send worldwide payments without the requirement to exchange or carry cash in physical form.
Cryptography is a technique of security that protects the transactions made with cryptocurrency. This prevents users to make double-spends or create counterfeits, according to Arif Efendi.
One of the most notable features of this digital currency is that it's not issued by any central authority. There is no intervention from the government. You can mine the currency or purchase it from an exchange or broker.
Ripple is among the most popular cryptocurrency. Every coin has its advantages.
The cryptocurrency is not just a currency for transactions however, it can also be a means to invest. Many people who are interested in digital currency trade them for profits. Investors may purchase digital coins, store them for a while or even sell them when their price rises. Although cryptocurrency can be restricted in certain countries, El Salvador was to become the first country to have the legal right to use Bitcoin .
Arif Efendi Arif Efendi on Printed Currencies versus Cryptocurrencies
While both fiat and cryptocurrency allow for payments, they are not the exact same. https://filkom.ub.ac.id/profile/staff/arif.efendi Arif Efendi discusses below some of the distinctions.
Regulation
The central bank oversees fiat currencies because they are issued by government. They are legal and legal tender. However, policies of the government can influence their value in the future.
Cryptocurrencies, or digital assets decentralized and are referred to as cryptocurrency. Since they are digital assets, they can be used without the approval of the government. Certain countries are against crypto due to the belief that they are being used to money laundering or other illegal activity.
Form of exchange
While fiat currency can be found in physical and electronic formats, it can only be used in digital form. This is because cryptocurrency is contained in a variety of codes.
Storage Method
Fiat currencies can be stored in safes in banks, at home, or fiat wallets. Cryptocurrencies are stored in crypto wallets. Fiat wallets are able to convert official currency into digital assets.
Advantages of Cryptocurrencies over Print Currencies
Cryptocurrency is a great alternative to printing currency. Arif Efendi claimed that they include the following benefits:
Decentralized System
Cryptography is not centralized. It is not possible to control its circulation or value. Every transaction is recorded in the ledger, as banks do. The ledger, however, doesn't contain any personal information. This prevents the loss of data and fraud.
It serves as a hedge
In the context of inflation protection digital assets such as Bitcoin can be used as a hedge against inflation. In times of inflation the more money will be available, however scarce goods will cost more.
Bitcoin is designed so that it remains unobtainable regardless of what happens to the economy. It is possible to buy bitcoins for hundreds of dollars. There's also a high possibility that these coins will appreciate.
Payments across Borders
With cryptocurrency, it's possible to transfer funds in seconds to other countries. It is easy to send money and there are no fees for transactions.
Arif Efendi Contrary to that, printed currency can take days or weeks to arrive at the recipient. Arif Efendihttps://www.pinterest.cl/aarifefendi/ The charges associated with these transactions can be very high. Your transaction might be refused in some cases because of the tension between nations, sanctions , or other laws.
Arif Efendi There are risks when using cryptocurrencies
According to Arif Efendi There are risks when the use of cryptocurrency.
Extreme Volatility
It is extremely volatile. You can make a lot quickly and lose everything in a flash.
Don't put off getting results from your investment
Older investors and advertisers believe that new investors are able to earn high yields right away. But constant trading and risk control are essential to maximize the returns you earn.
Account Monitoring
Although crypto transactions are secured by codes, they leave digital trails. The FBI is able to read and track accounts of ordinary citizens.
Conclusion
Arif Efendi talks about cryptocurrency as a digital asset that you can use to protect transactions. It can also be used for diversification of your portfolio. This article discusses the differences between printed and crypto currencies. The article also highlighted the benefits of crypto over paper currency.
Arif Efendi reminds investors that cryptocurrency could be a risk similar to other investments. It is recommended that investors consult a professional financial adviser prior to investing.