Cryptocurrencies and Digital Currencies!

Cryptocurrencies and Digital Currencies!

Manahel Thabet
Manahel Thabet

Most financial and business market literature is always about cryptocurrencies, and they think they also mean cryptocurrencies; although the origin of the idea of cryptocurrencies is derived from cryptocurrency literature, and although the second overlaps with the former, their development and the prosperity of their fields point to the independence to which both terms have come to terms in what it means and specializes in.

Cryptocurrencies began their journey as a virtual idea in papers for researchers in the 1980s, and then expanded to its peak in the first decade of this century, entering practice after entering the fourth economic era, the age of knowledge, during the collapse of the global economy, and was traded through the application of blockchain or “ledger” on which electronic mining accounts and cryptocurrency stocks are recorded; The spawning and market value reached more than 1,700 cryptocurrencies, mainly Bitcoin, with a purchasing value of more than $60,000 per bitcoin.

Because there are many risks that governments in all countries of the world are calling for and warn against because of cryptocurrencies, if they allow their trading in the context of people’s financial and economic dealings because their uses are in the dark web circle, they have only gone towards cryptocurrencies, but while retaining their pure privacy in terms of the design of their digital currency electronic portfolio, as well as their national symbol of digital currency and shortening them in their symbolic name.

The decision to digitally transform most governments in the world in their financial and economic dealings has been in line with the digital tools and technological tools and means imposed by the knowledge system, as well as their quest to maintain their economy from collapse and contribute to the achievement of the Sustainable Development Goals.

We can see the difference between cryptocurrencies and digital currencies in the style of electronic wallets. The ledger or “blockchain” in cryptocurrencies is not the electronic wallet in digital currencies. The first is about mining operations in addition to not revealing the identity of those who transferred cryptocurrency balances in blockchain, and therefore difficult to trace the sources of money, while electronic portfolios in cryptocurrencies are transparent and comprehensive in content, they contain all the details of receipts and transfers of funds. In addition, they can include details of other transactions, such as details of human living bills such as phone bills, Internet, water, electricity, supermarket purchase bills, and children’s tuition. Otherwise, cryptocurrencies reduce their purchasing value to the same purchasing value stored in banknotes, namely, the strictly digital perception of banknotes, unlike Bitcoin and other cryptocurrencies that are the same manufacture and do not reflect any previous banknotes.

The common denominator between electronic portfolios of cryptocurrencies and cryptocurrencies is that both eliminate centralization in all its forms, and do not have the presence of the third party or intermediary that we have always found in remittances, such as banks and exchange companies, as well as billing offices, and other financial transactions that required the presence of a broker or third party.

Author : Manahel Thabet
Published July 18, 2021
Al Bayan Newspaper

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Manahel Thabet Ph.D. – President participated in the first Economic Leadership Workshop
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