Cryptocurrency adoption: Opportunities and challenges

Cryptocurrency adoption: Opportunities and challenges

By Ghadeer Ghloum

KUWAIT: Using cryptocurrencies or digital currencies is a relatively new phenomenon that has been gaining popularity among investors and users around the globe. Cryptocurrency is a type of currency that utilizes cryptography, which is a method of encoding information to secure it to facilitate financial transactions. This currency is decentralized and operates independently of banks and governments, which enables it to offer users more privacy and flexibility. However, cryptocurrency’s unstable nature presents a significant risk for investors, with fluctuating prices and frequent market corrections.

This occurs because the currency is relatively new, and demand is not yet steady or predictable. Prices can drop as fast as they rise, which creates a risk for investors who may not be well prepared. Thus, cryptocurrency is undoubtedly an enticing option, but caution remains crucial when investing in this type of currency. Investors should thoroughly explore the market and make informed decisions before investing in any cryptocurrency. Educating oneself about the technology behind cryptocurrency and understanding its risks and benefits is essential in making informed investment decisions.

For a thorough and more accurate examination of cryptocurrencies, Kuwait Times interviewed Kuwaiti economist Salman Al-Naqi. Risks associated with cryptocurrencies Naqi told Kuwait Times inflationary pressures after