Digital currencies shine

SectorFinancial Markets
CountryMiddle east

The soaring prices of crypto-currencies, notably Bitcoin, have been tempting many people wanting to achieve quick gains through investing in digital currencies, especially with the decreasing value of the dollar due to US Federal Reserve decisions to cut US interest rates to support the economy. The dollar ended 2020 with its largest annual loss since 2017. Bitcoin was trading at about $5,000 per coin in March 2020 when the coronavirus pandemic was first declared, and it has now reached in excess of $40,000. There are currently more than 18 million Bitcoins available, generated by bitcoin mining, a mathematical system using high-end computers that makes new Bitcoins available through decentralisation. Bitcoin is a virtual digital currency that has no physical existence, is not backed by tangible assets, and is traded over the Internet. The world’s first digital currency is not issued by any central bank, is not subject to the supervision of any supervisory authority, and is not controlled by any central authority, leading to resistance from many governments around the world to the trading of digital currencies. Bitcoin was launched in 2008, when it was invented by Satoshi Nakamoto whose true identity is unknown. It skyrocketed in value more...