In an opinion poll conducted by Al Jazeera Net on social media, the vast majority expressed their belief that investing in digital currencies is not safe, ruling out the decision to enter this type of investment.
This comes at a time when the Bitcoin (Bitcoin) – the most famous and strongest in the world – jumped to record levels that exceeded 61 thousand dollars, before returning to descend according to a series of repeated fluctuations.
And 3791 people participated in the Al-Jazeera Net survey regarding the attitude towards investing in digital currencies.
Al Jazeera Net asked 3 questions:
Do you think investing in cryptocurrency is safe?
Thinking of investing in Bitcoin and other digital currencies?
Do you think bitcoin can reach $100k?
Bitcoin hit a record high of $61,781 last Saturday, but has since fallen as investors consolidated their gains, and amid India’s plans to ban cryptocurrency trading.
The most popular digital currency on Wednesday (March 17) recorded 55,415 dollars, according to a Reuters report.
Is investing in digital currencies safe?
And 74.8% of the participants in the Al-Jazeera Net survey said that they do not believe that investing in digital currencies is safe, while 25.2% expressed their belief that entering the world of digital currencies is safe.
And participated in the answer to this question 1287 people.
One participant commenting on this said that investing in cryptocurrencies “is not safe at the moment, because they will fall at any time… (there are risks).”
Another commented, “For the time being, not yet.” A third said, “It is not safe, and it has serious economic and social consequences.”
We brought this question to Talal Samhouri, investment manager at Aventicum Capital Management, based in Qatar, and his answer was: “In my opinion, investing in Bitcoin and cryptocurrencies is not safe.”
Samhouri attributed this to several reasons, including that “these currencies do not have an actual value or any stock of value – and this is one of the basics of any currency – but rather determines this value (in the current situation) based on supply and demand.”
He explains that in order for any currency to be classified as an actual currency, it must be characterized by 3 basic things: to be a store of value, to be an accounting unit, and to be reciprocal between members of society.
Samhouri adds that in the case of digital currencies, they have an arithmetic number, but it fluctuates, and this affects global trade, noting that less than 1% of this trade is through digital currencies.
Among the reasons that Samhouri lists for the lack of widespread acceptance of the use of digital currencies is the fluctuation in their price between a strong rise and a strong decline.
He says that the central banks resist these currencies and do not recognize them, because the main objective of these banks is to maintain the monetary policy of the state and direct the countries’ economy towards achieving steady and sustainable growth.
He warns that in the event of a digital currency that is not controlled or monitored by the central bank, the entire economy becomes at risk, and this affects growth and the members of society, and thus negatively affects the whole country.
Samhouri indicates that central banks are looking to find an alternative to these digital currencies, which is recognized and linked to the state’s currency, and monitored in terms of supply and demand levels.
For his part, Mustafa Fahmy Abul-Ela, chief strategy officer at Fortress Investment and business development, based in Qatar, says: “There is no safe investment in general, whether in stocks or outside the money markets, but what distinguishes digital currencies is that they are characterized by high The risks are high.”
He adds in an interview with Al-Jazeera Net that the rises and falls in these currencies are unjustified, as there is no main and clear reason for these fluctuations, except for what Tesla CEO Elon Musk announced about investing $1.5 billion in this area, and what was announced as Along with companies such as “MasterCard”.
Digital currencies face many challenges, including the question of legal legitimacy, especially on the part of central banks that have not yet considered them as tools of monetary exchange
Abul-Ela points out that these digital currencies face many challenges, including the question of legal legitimacy, especially on the part of central banks, which have not yet considered them among the tools of monetary exchange and means of payments, in addition to their legal status as (digital currencies) are still moving outside the framework of work. Central banks, and may be used to conduct illegal operations such as money laundering, and other criminal operations.
And US Treasury Secretary Janet Yellen had warned – in a letter confirming her appointment to the Senate – that virtual currencies are “mainly used to finance illegal activities” and are a source of “particular concern”.
It is noteworthy that bitcoin rose by about 1000% over the past year, significantly outperforming traditional asset classes, as a result of the high demand for it from individuals and institutions, and its acceptance as a form of payment. The market value of Bitcoin currently exceeds one trillion dollars.